Dear Sir/Madam,
I am a student of MBA pursuing my career in HR. I am having trouble understanding the fourth schedule, where the concept of set on and set off is calculated and discussed. My general understanding is that set on is used to provide a bonus in the next four years if the employee falls short of the minimum bonus. For set off, if the company falls short of the minimum bonus, it is paid and later adjusted from the surplus over the next four years.
Please help me with the fourth schedule and oblige.
Regards,
From India, New Delhi
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1I am a student of MBA pursuing my career in HR. I am having trouble understanding the fourth schedule, where the concept of set on and set off is calculated and discussed. My general understanding is that set on is used to provide a bonus in the next four years if the employee falls short of the minimum bonus. For set off, if the company falls short of the minimum bonus, it is paid and later adjusted from the surplus over the next four years.
Please help me with the fourth schedule and oblige.
Regards,
From India, New Delhi
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If the allocable surplus is more than enough to pay the maximum bonus, which is 20%, the balance amount will be carried forward to the next four years, subject to a ceiling of another 20%, known as Set on. If the allocable surplus is less than enough to pay the minimum bonus, the remaining amount will be adjusted over the next four years, referred to as Set off. Accordingly, the maximum bonus to be adjusted towards Set off will be 8.33%.
Abbas.P.S
From India, Bangalore
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Abbas.P.S
From India, Bangalore
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Sir,
Thank you so much, sir. This concept of a ceiling of 20% in the set on and 8.33% as set off was not mentioned. Thank you. Is there any provision for the over and above amount above the set on value of the allocable surplus? Or is it just the profit for the employer.
From India, New Delhi
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Thank you so much, sir. This concept of a ceiling of 20% in the set on and 8.33% as set off was not mentioned. Thank you. Is there any provision for the over and above amount above the set on value of the allocable surplus? Or is it just the profit for the employer.
From India, New Delhi
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