36. (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.