Diwali Bonus is a term that brings joy to many employees across India, especially during the festive season. While it is often seen as a goodwill gesture by employers, it is important to understand that in many cases, this bonus is not just a festival gift but a legal obligation under the Payment of Bonus Act, 1965. This Act ensures that eligible employees receive a share of the company’s profits, and many employers choose to distribute this statutory bonus around Diwali, hence the popular name “Diwali Bonus.”
History of Bonus Act in India dates back to the First World War, when textile mills in 1917 started giving a 10% war bonus to workers. Over time, demands for bonus payments became part of industrial disputes. In 1950, the Labour Appellate Tribunal introduced a formula for bonus calculation. Later, in 1961, the Government of India formed a Tripartite Commission to study the issue comprehensively. Based on its recommendations, the Payment of Bonus Act was enacted in 1965 to formalize bonus payments linked to profits and productivity.
Need for Bonus Act arose from the growing gap between wages and the cost of living. The Act was designed to ensure fair distribution of profits and to motivate employees by recognizing their contribution to the success of the organization. It also aimed to reduce industrial disputes and promote harmony between employers and workers.
Applicability of Bonus Act is quite specific. It applies to all factories and establishments employing 20 or more persons on any day during the accounting year. Employees earning up to ₹21,000 per month and who have worked at least 30 days in the year are eligible. However, certain sectors like LIC, hospitals, and government-run industries are exempt under Section 32 of the Act.
Limit and Rules of Bonus Act are clearly defined. The
minimum bonus payable is 8.33% of the salary or ₹100, whichever is higher, even
if the employer has not made any profit. The maximum bonus can go up to 20% of
the salary, depending on the allocable surplus. Employers must pay the bonus
within 8 months of the financial year’s end. Misconduct like theft or fraud can
disqualify an employee from receiving the bonus.
Actual Bonus Act Status in India shows mixed
compliance. While many organized sector companies follow the Act diligently,
several small and medium enterprises either delay payments or avoid them
altogether. The 2015 amendment increased the eligibility ceiling from ₹10,000
to ₹21,000, but retrospective application was stayed in some states due to
financial concerns. Despite legal mandates, enforcement remains a challenge in
many regions.
Who Follows and Who Doesn’t Follow Bonus Act varies
widely. Large corporations and public sector units generally comply due to
regulatory oversight. However, many private firms, especially in unorganized
sectors, either underreport profits or misclassify employees to avoid paying
bonuses. Lack of awareness among workers and weak enforcement mechanisms
contribute to this gap.
Wariness to Employees and Labour is a real issue.
Many workers are unaware of their rights under the Bonus Act. Some fear
retaliation if they demand their dues, while others accept whatever is given
without questioning. This lack of awareness and empowerment leads to
exploitation and dissatisfaction among the workforce.
Overall Bonus System Effectively Apply in India only when there is transparency, proper record-keeping, and active monitoring by labour departments. Awareness campaigns, digital payment tracking, and grievance redressal mechanisms can help improve implementation. Trade unions and NGOs also play a role in educating workers about their rights.
What Can We Do to improve the bonus system includes strengthening enforcement, simplifying compliance for small businesses, and increasing awareness among employees. Government can introduce online portals for bonus tracking and encourage whistleblower protection for reporting violations. Employers should see bonus not just as a legal duty but as a tool for employee motivation and retention.
Loopholes in Bonus Act include vague definitions of
profits, exemptions for certain sectors, and lack of penalties for delayed
payments. Employers often manipulate financial statements to show reduced
profits, thereby lowering bonus payouts. Also, the Act does not cover employees
earning above ₹21,000, leaving out a significant portion of the workforce.
My Personal Opinion is that while the Bonus Act is a
progressive law, its real impact depends on honest implementation and
awareness. Diwali Bonus should not just be a festive formality but a reflection
of fair labour practices. Employers must embrace it as a way to build trust and
loyalty, and employees should be empowered to claim their rightful share in the
company’s success.
दिवाली बोनस वह राशि है जो कर्मचारियों को त्योहार के समय दी जाती है। कई बार यह केवल एक उपहार नहीं होता, बल्कि यह बोनस अधिनियम के तहत कानूनी रूप से अनिवार्य होता है। बोनस की शुरुआत 1917 में युद्ध बोनस के रूप में हुई थी। इसके बाद 1965 में भारत सरकार ने बोनस अधिनियम लागू किया ताकि कर्मचारियों को कंपनी के लाभ में हिस्सा मिल सके। यह अधिनियम कर्मचारियों को उनके योगदान के लिए प्रोत्साहन देने और लाभ का न्यायपूर्ण वितरण सुनिश्चित करने के लिए बनाया गया था। यह अधिनियम उन सभी संस्थानों पर लागू होता है जहाँ 20 या उससे अधिक कर्मचारी कार्यरत हैं। ₹21,000
मासिक वेतन तक के कर्मचारी इसके अंतर्गत आते हैं।
.jpg)
No comments:
Post a Comment