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Friday, September 27, 2013

Diwali Bonus 2013 For Employees

Diwali Bonus 2013 For Employees 

Diwali Bonus 2013

Companies are maintaining pre-festive season bonuses in line with last year’s payouts, ensuring employee morale does not fizzle out this Diwali. Those that have decided to tighten their purse-strings are doing so marginally, to soften the blow.
“Automotive and manufacturing companies that employ a blue-collar workforce typically roll out Diwali bonuses,” says Shiv Agrawal, managing director of ABC Consultants. But besides manufacturing companies, consumer durable firms are giving out bonuses as performance-boosters similar to last year, as this is the busiest time for their staff. This is despite the 4%-5% decline in growth rate of the sector – most companies say they have adjusted their sales targets accordingly.
“In India, all big-ticket purchases happen during this time. By giving a bonus now, companies push their employees, especially those directly linked with customers, to step up,” says Aditya Narayan Mishra, president – staffing and marketing director, Randstad India.
Panasonic India will offer a performance bonus during Diwali despite the tough business environment to boost employee morale and reward performance, says MD Manish Sharma. Though Panasonic has no special Diwali bonus per se, it offers the sales incentive twice a year -- once in May-June and once during Diwali to coincide with the festive mood. The company also gifts all its employees its own products during the season. Panasonic’s sales incentive is likely to be around 15%-20% of basic pay. Videocon will offer bonus like last year to the employees, which will be around 10%- 20% of the annual basic pay, says a senior executive. Executives at LG India and Panasonic too confirmed there will be no cut in bonuses.
Samsung India will take a call on the quantum of bonus pay a week before Diwali, says an official who does not wish to be named. Schneider Electric India does not have a Diwali bonus scheme but offers all its employees a gift voucher of a modest amount.
CavinKare too pays its annual bonus during Diwali, which will be a minimum of 8.33% of the annual basic pay and will depend on the business performance. “Demand has been sluggish, but we will still reward talent since there is an expectation that things will pick up soon when we can reap more benefits,” says chairman CK Ranganathan.
In the financial services space, broking and consultancy firms are paying bonuses to their junior management staff. Angel Broking will pay between 8% and 20% of annual basic salary as Diwali bonus to junior management executives who earn up to Rs 25,000 per month. This is similar to last year. “We look at Diwali bonus as an investment rather than expense,” says Angel Broking senior VP (HR) Dhruv Desai. And those who have snipped their budgets this year have been careful not to go to the other extreme. Apollo Hospitals, for instance, gives out 20 days’ salary as Diwali bonus in September-end, but this year, it will offer 15 days’ pay, says Umapathy Panyala, CEO and regional head , Apollo Hospitals, Karnataka.
The auto sector, which has been struggling to step on the gas, is negotiating with employees on the issue of Diwali bonus. “Till last year, we gave our workers two months’ salary as Diwali bonus, but with the economy being the way it is, year the bonus will be less this year,” says the HR head of a leading auto maker, who does not wish to be named. “Talks are on with the unions and therefore we do not know the exact amount to be rolled out,” he added. The company has a 10,000-strong workforce and gives out bonuses in mid-October.
Hyundai Motor India will give 2,300 technicians who work on the shop floor Rs 55,000 each as Diwali bonus compared with last year’s Rs 51,000. The bonus is given two weeks before Diwali, according to a company spokesperson.
The emerging microfinance industry too has realised that keeping employees sated during the festive period stems dissatisfaction. Ujjivan Financial Services has a March-April slot for annual bonuses but this year, decided to push it to the start of the festive season. “Employees suggested this would be a better time to get extra money than the start of the year,” says Vittal Rangan, HR head of Bangalore-based firm. The bonus was given in August, so that those who celebrate Eid and Onam can avail of extra cash as well. While top performers got a bonus of 125% of their basic, the middle cadre received 100% and the bottom rung were given 75%.
Among the domestic carriers, Jet Airways gives a Diwali bonus, an amount which employees say is less than 10% of their salary. And employees are doubtful, if the tradition will continue.
“Last year I got about Rs 8,000, but there’s no news of a bonus yet this year. We usually get some intimation around this time,” says a mid-level employee at the airline who does not wish to be named. A mail to the airline’s spokespersons didn't yield any response. 

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