History Of Diwali Bonus

History Of Diwali Bonus

It was during the British rule that the four-weekly pay system was introduced in India. This means that the 28 days (4 weeks duration) account currently held by the mobile companies is born from this four week scale.

Although the British fixed the salary for a period of four weeks, they paid a 4 weeks salary as a monthly salary. Thus an employee will be paid only 12 times a year. But considering the 52 weeks in a year and the 4 week period for pay, an employee has to be paid 13 times in a year.

The labor unions pointed out to the British government that the salary was fixed at 4 weeks and paid 12 times a year, not 13 times a year. The labor unions fought for ten years, demanding that the British government pay them the remaining 13^th unpaid salary.

An agreement was reached between the British government and the labor unions as a result of decades of struggle. The British government agreed to pay the 13^th salary, which was not paid as per the agreement, as a Diwali bonus that it would help with festival expenses if paid during the festive season.

When we read the above history we can see that in a way Deepavali bonus is said to be like giving with kindness but it is the amount of salary that should be paid to the employees. So it is clear that the Diwali bonus is an employee's entitlement to work and not an amount of kindly to ask.

*****