In a manufacturing company after deducting the scheduled deductions from the “Gross profit” (as calculated in the Payment of Bonus Act 1965) the amount is Rs. 15 lakh. What is the name of the fund and the amount from which bonus is finally distributed (Without complete calculations the answer will treated as WRONG)
Name of fund: _
Amount (Show calculations): _
In the same organization the total Bonus amount to be paid is Rs. 375,000/- and the total wage of the bonus eligible employees is Rs. 36 lakhs. What will be the surplus or deficit amount (Show calculations)? How will the adjustments (surplus / deficit) be made as per Payment of Bonus Act 1965? (Maximum 5 lines)
Part A
Rs 15 lakh is the available surplus ie and the amount from which the surplus is finally distributed is allocable surplus
Allocable Surplus is 60 % of the available surplus from which payment of bonus is made ( in case of banking sector it is 67% )
=1500000*30%
=450000
Part B
The minimum amount of bonus to be paid =8.33% of the total wage of the bonus employee
The company may pay bonus upto 20% of the total wage of the bonus employee
The company paid Rs 375000 bonus from the Allocable surplus of Rs 450000 and the amount remaining in the allocable surplus of Rs 75000 (450000-375000) is excess surplus and will be carried forward to the next following year to be utilized for the purpose of payment of bonus in case of the shortage of the allocable surplus or losses occur. This is called as Set-On
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