Full Bench Formula Explained

Summary

The full bench formula is a method under section 4 of the payment of bonus act, 1965, used to calculate bonuses. Gross profit is determined as per schedules i or ii, depending on the company type. Available surplus is derived after deducting prior charges like depreciation and taxes from gross profit. Allocable surplus, a portion of the available surplus, is used for bonus distribution, typically 67% for non-banking companies and 60% for banking companies.

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Undher which section
The "Full Bench Formula" for calculating bonuses is discussed under Section * of the Payment of Bonus Act, *. It provides the method for calculating gross profit, which is further used to determine available and allocable surplus.