What is the bonus calculation formula? In case the Allocable surplus is more than wages? given the limits 8.33-20%
I see here: https://www.labourlawreporter.com/wp-content/uploads/2018/09/PPT-shushil.pdf
=
(Allocable Surplus) X 100 / (salary and wages of the employees eligible for Bonus)
From India, Meerut
I see here: https://www.labourlawreporter.com/wp-content/uploads/2018/09/PPT-shushil.pdf
=
(Allocable Surplus) X 100 / (salary and wages of the employees eligible for Bonus)
From India, Meerut
What you have mentioned is that % of Bonus calculation. Here salary means bonus eligible salary which is 7000/- or minimum wages whichever is higher. If allocable surplus is more than bonus eligible salary for all eligible employees ( Basic and DA 21k or less in previous financial year as bonus is deferred wages ) , then bonus % will be more than 8.33%. This can be calculated in following way.
Rs. x is required to pay minimum bonus 8.33%
Therefore, allocable plus ( say A which is more than x ) can pay bonus = (x / 8.33 * A) %. If it is more than 20% then amount maximum equivalent to 20% will be paid as bonus and excess of that any amount subject to the amount of 20% bonus will be Set On.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
334Rs. x is required to pay minimum bonus 8.33%
Therefore, allocable plus ( say A which is more than x ) can pay bonus = (x / 8.33 * A) %. If it is more than 20% then amount maximum equivalent to 20% will be paid as bonus and excess of that any amount subject to the amount of 20% bonus will be Set On.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
The excess remains with the company.
In following years, if allocable surplus is less than 20%, it will be met from the excess of previous years.
Please read the section on set on and set off and you will be clear
From India, Mumbai
In following years, if allocable surplus is less than 20%, it will be met from the excess of previous years.
Please read the section on set on and set off and you will be clear
From India, Mumbai
Excess will remain in Company as Set On. Both Set On and Set Off will continue for 4 years and in the 5th year, 1st year amount will be back to company's account. This will be continuous process. Any Set On or Set Off will be adjusted with following years bonus calculation if required. As an ex-employees of Philips India I have noticed that there were years when there was set on every year for more profit / allocable surplus.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
I believe you are aware of obligations under the Payment of Bonus Act (which is being subsumed in Code on Wages,2019) which involves preparation/filing of various Forms-A,B,C,D and a format for arriving at 'Allocable Surplus' as per provisions of Sec.2(4) fo the PoB act inter-alia includes 'set-off/set-on' procedures. Soon after the preparation of your Final Accounts, you'll arrive at the 'Allocable Surplus'. I have attached useful notes on the subject which may be some guidelines at this juncture.
From India, Bangalore
From India, Bangalore
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