Tips and General guideline for payment of Annual Bonus to the employees.
1)Bonus has no concern with blue or white-collar categories of employees.
2)Any person whose wages/salary is below 21000 (basic & DA) is eligible for bonus.
3)Any employee who work more than 30 days in a previous financial year is entitled for bonus.
4)The bonus is payable on Rs.7000 or minimum wages of that financial year, whichever is higher.
5)The percentage of bonus shall be decided based on allocable surplus in the balance sheet of the related financial year.
6)The set-on/set-off has to be done for the calculation of allocable surplus, which is done by the CA of the company.
7)As per payment of bonus act the last date of disbursement of bonus is 30th of November of every year.
8)Annual return is to submitted to the labour department in “Form D” before 30th December of every year.
9)The payment of bonus to the contract labour shall be paid by the contractor as above but as per his own outcome of balance sheet.
Available Surplus =Net Profit-Direct/Indirect Tax payable by the employer Tax Payable.
Allocable Surplus=60% of Available Surplus,
For calculating amount of bonus in respect of Accounting Year Allocable Surplus is computed after considering the amount of Set ON & Set OFF from the previous year.
15. Set on and set off of allocable surplus
(1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent of the total salary or wages of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilized for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule.
(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 10, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilized for the purpose of payment of the minimum bonus, then such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the Fourth Schedule.
(3) The principle of set on and set off as illustrated in the Fourth Schedule shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment of bonus under this Act.
(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.]
Year and so on up to and inclusive of the forth-accounting year in the manner illustrated in the fourth schedule.
(3) The principle of set on and set off as illustrated in the fourth schedule shall apply to all other cases not coved by sub-sec.(1) or sub-sec. (2) for the purpose of payment of bonus under this act.
(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.
The amount so computed from Allocable Surplus is distributed proportionate to Wages/Salaries received by them during Accounting Year Minimum: 8.33% and Max 20% has to be paid.
(5) If any unit have agreement under section, 31(I) (II) of payment of bonus act linked with productivity then the employees of such unit shall get Bonus as per act.
shared for learning Purpose.
