Payment of Bonus Act, 1965
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.]
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