of economic condition of companies, the overall view stipulates that, rarer establishments
will hand out bonuses each year, according to HR experts. But, it is an obligation
to pay bonus to the unionized staff, a minimum percentage of 8.33 on basic
salary and maximum percentage of 20 on the basic salary. Disbursing of Diwali
bonus is more familiar in the industrial sector but the conception were gradually
got substituted by performance incentives in further segments.
Most of the Industries will provide the
bonus through the year in its place of Diwali Bonus is required to be compensated
as per the law each year, particularly is related to the remunerations. The guideline
states that establishments have to announce bonus, which is a minimum percentage
of 8.33 on basic salary and maximum percentage of 20 on the basic salary as sound
as Dearness Allowance. We persons call Diwali expenses is also called additional
payment. Some establishments don’t give this additional payment during Diwali
period but during the year.
Diwali bonus is better not to give
incentives during festivities. The implementation of Diwali bonus is
not applicable to the all International Companies. All sort of incentives are
given is achievement-based only. We have to maintain
secularism within our company, the incentives are specified mostly two months
before the appraisals are made relatively than giving them during the time of festivals.
Conversely we have made the payment away with the festal bonus, we positively
give it in the form of sweets and chocolate packets. The remunerations and
bonus are anyway based on the returns. To maintain a materialistic atmosphere
at the workplace, it is better not to provide the incentives during the festivities.
The proportion of bonus becoming more
peculiar every year varies in the industrial sector, the annual
festive Diwali bonus remains to be powerfully followed as per the law &
regulations. The festal bonus not only acts as an incentive to the staff, it is
also indicates our confidence as owners in the staff. In sight of Software sector,
the industrial sector is still powerfully believes in the bonus culture.
Maximum of Industries are not interested to give
bonus but had incentives which are declared during the year as per the law.
Even in Software sector, the incentives are declared half-yearly or quarterly.
The concept of bonus is progressively replaced by performance incentives, which
is paid on a quarterly basis.
As for the unionized staff, the law of the land applies and the bonus
concept still exists.
The unionized staff is administrated by separate
code of conduct besides they still get the Diwali bonus every year as per the rules.
The executive level cadre do not come under the unionized staff. Till limited
years ago, there was a practice of giving bonus to those at Top-level, but now
many companies have done away with the bonus culture.
However yes, during festivals like Diwali we
follow the practice of giving gifts, not in cash.
Currently, especially the Software companies, efforts
more on paying permitting to the based on performance and reached the targets. On
the same Companies have quarterly or half-yearly reviews after which they
declare incentives, which vary for all individuals.
So finally on the above matter every
country has developed a set of regulations for the management of human
resources, so the HRM practices have to be designed or modified according to
these regulations and based on the returns of the organization.