Section Text
(1) Where for any accounting year, the allocable
surplus exceeds the amount of maximum bonus payable to the employees in the establishment under
section 26, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage 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 utilised
for the purpose of payment of bonus in such manner as may be prescribed by the Central Government.
(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 26, and there is no amount or sufficient amount carried forward and set on under sub-section (1)
which could be utilised 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 such manner as may be
prescribed by the Central Government.
(3) The principle of set on and set off as may be provided in rules by the Central Government under
this Code 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 Code.
(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.