Question
According to Section 36(2) of the Code on Wages, 2019,
what happens if there is no available surplus for a particular accounting year?Solution
The minimum bonus is carried forward and set off in the next accounting year, Explanation: As per Section 36- (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.
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