Question
According to Section 36 of the Code on Wages, 2019,
what happens if, for anyaccounting year, the allocable surplus exceeds the amount of maximum bonus payableto the employees in the establishment under Section 26?Solution
Explanation: Asper Section 36- (1) Where for any accounting year, the allocable surplus exceeds theamount ofmaximum bonus payable to the employees in the establishment under section26, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wageof the employees employed in the establishment in that accounting year, be carriedforward 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 suchmanner as may be prescribed by the Central Government.
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