Why are bonuses given on Diwali..!?

Since pre-independent india, agricultural and industrial workers used to pay extra salaries to their employees once a year to celebrate the festive season. All institutions and organizations in india were paid every week till the british rule. Textile mills and flour mills all over india were paid every week. As a result, the employees were paid for 52 weeks.
But after the coming of british rule, monthly salaries were given to all departments and industries. In addition to this, only 48 weeks of salary will be paid if the various holidays are taken into account in the year. This was a great opportunity for the british to save money. Tried to implement this as such. But protests broke out across the country. That means 52 weeks means 13 months of salary, while 48 weeks means only 12 months of salary. Common workers were losing their salaries for a month.From 1930-1940, protests took place in various parts of the country, starting in Maharashtra. After various stages of consultation, the law was enacted in june 1940 to provide 12 months' salary every month and 13th months' salary on Diwali. It later became diwali Bonus. Many in independent india cheated the employees by not following the old rules and not giving them this 13 months salary i.e. bonus amount. To correct this, the indian government has put all the companies under regulatory action, forcing employers to pay a certain percentage of their profits to employees as bonuses.This regulatory action is known as the Payment of Bonus Act, of 1965. According to this act, the company has to pay a bonus to its employees at a minimum rate of 8.33% and a maximum rate of 20%.
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Sowmiya Sriram

19/10/2022 06:46 PM