According to Payment Of Wages Act 1965,
Allocable Surplus means;
In relation to an employer, being a company (other than a banking company) which has not made arrangements prescibed under Income Tax Act for the decalration an payment of dividend in accrdance with section 194 of that Act, 67% of such available surplus in an accounting year.
In any other case 60% of such available surplus.
From Netherlands
Allocable Surplus means;
In relation to an employer, being a company (other than a banking company) which has not made arrangements prescibed under Income Tax Act for the decalration an payment of dividend in accrdance with section 194 of that Act, 67% of such available surplus in an accounting year.
In any other case 60% of such available surplus.
From Netherlands
Dear Amit,
According to Bonus Act,
Allocable surplus is the 'surplus amount' on which minimum or maximum bonus i.e. actual percentage of bonus to be paid is calculated.
If allocable surplus exceeds minimum bonus, then Maximum bonus is been paid i.e. 20% of Salary
and if there is loss of a company for a particular accounting year, i.e. less allocable surplus then minimum bonus @ 8.33 % of Salary is been paid.
In case of Foreign Companies 67% of Available Surplus is considered as a Allocable Surplus,
And in case of other companies 60% of Available Surplus is considered as a Allocable Surplus.
Available Surplus = Gross Profit - Deductions (under sec 6 )
Hope your concept for Allocable surplus is cleared.
Thank you
From India, Pune
2According to Bonus Act,
Allocable surplus is the 'surplus amount' on which minimum or maximum bonus i.e. actual percentage of bonus to be paid is calculated.
If allocable surplus exceeds minimum bonus, then Maximum bonus is been paid i.e. 20% of Salary
and if there is loss of a company for a particular accounting year, i.e. less allocable surplus then minimum bonus @ 8.33 % of Salary is been paid.
In case of Foreign Companies 67% of Available Surplus is considered as a Allocable Surplus,
And in case of other companies 60% of Available Surplus is considered as a Allocable Surplus.
Available Surplus = Gross Profit - Deductions (under sec 6 )
Hope your concept for Allocable surplus is cleared.
Thank you
From India, Pune
Yes firoz 3500 is the ceiling amount, that means upto Rs.10,000 you are suppose to calculate on Rs. 3500 only, if the person earns more than 10,000, then he will not get a bonus but he shall be given exgratia. Exgratia is a term generally mentioned for upper level employees earning more than 10,000.
Hope it is clear.
Indu Nair
Student HR
From India, Muzaffarnagar
Hope it is clear.
Indu Nair
Student HR
From India, Muzaffarnagar
As per the Payment of Bonus(amendment)Bill ,2010 ie bill No 15 of 2010 as published in Gazette of India ,5-3-2010 ,pt.II-s.II Ext.p.59(No.3) , the bonus act 1965 has been amended to the effect that with effect from the year 2009 the minimum bonus will be 11% and the amount of Rs.3500 which was the maximum amount on which the bonus was being calculated hithertofore has been enhanced to Rs. 5000.
Brig(retd.) N A Subramanian,YSM
From India, Delhi
Brig(retd.) N A Subramanian,YSM
From India, Delhi
Dear sir,
If any employee getting 11000 basic then how the bonus will calculate?
Q2.Is 3500 is an eligiblity for bonus amount?
Q3 What is the minimum and maximum limit for Bonus?
please reply.................
Thanks
Parveen kumar
From India, Bahadurgarh
If any employee getting 11000 basic then how the bonus will calculate?
Q2.Is 3500 is an eligiblity for bonus amount?
Q3 What is the minimum and maximum limit for Bonus?
please reply.................
Thanks
Parveen kumar
From India, Bahadurgarh
Employee drawing wages up to rs 3500 per month or less. for calculation purposes rs 2500 per month maximum will be taken even if an employee is drawing up to 3500 rs per month sec 12 note : the proposal to enhance the existing ceilling of rs 3500 in under active consideration by the govt
From India, Lucknow
From India, Lucknow
Mainly two mistakes happened in the above posting.
You have mentioned that "if allocable surplus exeeds minimum bonus, the maximum bonus been paid." This is not correct. If the allocable surplus is enough to pay 20%, then maximum bonus has to be paid. Otherwise it will vary from 8.33% to 20%.
Also in case of Foriegn companies 67% of avilable surplus is considered as allocable surplus is not correct. This is to be changed as companies other than Banking companies.
Abbas.P.S
From India, Bangalore
You have mentioned that "if allocable surplus exeeds minimum bonus, the maximum bonus been paid." This is not correct. If the allocable surplus is enough to pay 20%, then maximum bonus has to be paid. Otherwise it will vary from 8.33% to 20%.
Also in case of Foriegn companies 67% of avilable surplus is considered as allocable surplus is not correct. This is to be changed as companies other than Banking companies.
Abbas.P.S
From India, Bangalore
Please clarify my below doubt -
If a staff is drawing a basic of less than Rs.10000/- and if the company declares a bonus of more than Rs.3500/-. For accounting purpose, can we show the full amount as bonus, or do we have have to show Rs.3500/- as bonus and balance amount as ex-gratia.
please clarify.
thanks
From India, Mumbai
If a staff is drawing a basic of less than Rs.10000/- and if the company declares a bonus of more than Rs.3500/-. For accounting purpose, can we show the full amount as bonus, or do we have have to show Rs.3500/- as bonus and balance amount as ex-gratia.
please clarify.
thanks
From India, Mumbai
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf