Dear All Pls. tell me the actual meaning of Set on & Set off in bonus Act. regards Rahul
From France, Paris
9From France, Paris
dear
these are terms used in bonus act to decide the percentage of bonus to be paid to employees.
set on--first we calculate allocable surplus and out of that surplus we pay bonus and after paying max bonus ie 20% ,if some amount left balance is called set on and this amount is kept in reserve for future .
set off-if in any accounting year you donot have sufficient surplus and even you are not able to pay minimum bonus of 8.33% than legally you have to pay 8.33%,so balance amount which u donot have in surplus will be shown as set off for future
and you have to take care of set off/on in future before deciding rate of bonus.
tks
j s malik
From India, Delhi
these are terms used in bonus act to decide the percentage of bonus to be paid to employees.
set on--first we calculate allocable surplus and out of that surplus we pay bonus and after paying max bonus ie 20% ,if some amount left balance is called set on and this amount is kept in reserve for future .
set off-if in any accounting year you donot have sufficient surplus and even you are not able to pay minimum bonus of 8.33% than legally you have to pay 8.33%,so balance amount which u donot have in surplus will be shown as set off for future
and you have to take care of set off/on in future before deciding rate of bonus.
tks
j s malik
From India, Delhi
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