Set on and set off of allocable surplus
Section 36 of the Code on Wages, 2019 deals with set on and set off of allocable surplus. 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. The Act was enacted on 08 Aug 2019.
(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.
Section 36, The Code on Wages, 2019 (Act 29 of 2019).
Cross-references
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Questions about Section 36
What does Section 36 of the Code on Wages deal with?
Section 36 of the Code on Wages is headed "Set on and set off of allocable surplus". 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.
How do I find court cases under Section 36 of the Code on Wages?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Code on Wages 2019 36, section 36 Code on Wages 2019, section 36 of the Code on Wages. People searching for it also type section 36 code on wages. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 36 of the Code on Wages, and has it changed?
Its own text turns on section 26 (Eligibility for bonus, etc), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.
When was Section 36 of the Code on Wages enacted?
Section 36 of the Code on Wages, cited as Code on Wages 2019 36, was enacted on 08 Aug 2019 as Act 29 of 2019. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1802 words
- 67. Power of appropriate Government to make rules1008 words
- 18. Deductions which may be made from wages883 words
- 26. Eligibility for bonus, etc843 words
- 42. Central Advisory Board and State Advisory Boards663 words
- 51. Appointment of Inspector-cum-Facilitators and their powers456 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.