More companies to dole out bonuses this Diwali

06 November, 2012

This Diwali the number of companies giving bonus to their employees have increased in comparison to the last year, thanks to the positive sentiments due to various economic reforms.

A SURVEY by an HR consultancy firm MyHiringClub.com says that 65% of the private companies, an increase of 12% over the last year, have decided to dole out bonus to their staff. Similarly 95% Public Sector Companies, an increase of 3%, will add to the joy of their employees with festival bonus.

Employees working in IT and IT-enabled companies, auto sector and financial services would get the bonus. The human resource in the auto and retail sector is likely to get the highest bonus, as sales during this particular festive season jump up significantly, which amounts up to 30-40 per cent of their annual sales.

The employees could get cash payouts as a percentage of their total salary, special festival incentives, gifts and a larger portion of total variable pay as the bonuses, reported NDTV. The good news is that after Diwali the job market would see improvement, which in turn is forcing employers to offer good bonuses or salary hike to employees to retain them.

The survey report shows that 32% of the private sector employers are planning to dole out one-month basic salary to their employees as festival bonus, 29 per cent are considering to give a lump sum fixed amount and 39 per cent plan to give 5-6 per cent of CTC as festival bonus.

Sixty-three per cent of Public Sector Undertakings (PSUs) have planned to make their employees happy with one month basic salary, while the other 37% firms will dole out a lump sum fixed amount as Diwali bonus.