Home / Business and Economy / Diwali Bonus Divide: Indian firms offer gifts, MNCs lag
Diwali Bonus Divide: Indian firms offer gifts, MNCs lag
25 Oct
Summary
- Indian companies prioritize Diwali bonuses and gifts for employees.
- MNCs often link bonuses to performance, not festivals.
- Statutory bonus eligibility criteria exclude many MNC employees.
Indian companies demonstrate greater generosity with Diwali bonuses and gifts, a tradition rooted in cultural significance that contrasts with the performance-linked bonus structures common in many multinational corporations (MNCs).
Employees at foreign banks and multinational tech firms report a lack of Diwali bonuses or festive gifts. Instead, some MNCs offer end-of-year gifts like trolley bags or Bluetooth speakers. These companies often overlook the statutory bonus mandated by Indian wage laws, which requires a minimum bonus payout for eligible employees.
However, businesses with strong Indian roots, such as NoBroker, Fixderma, and LT Foods, actively celebrate Diwali with their employees. NoBroker, for instance, provides gifts worth approximately 20% of monthly salary to outsourced staff, while Fixderma offers a Rs 5,000 bonus and a trolley bag. LT Foods distributes sweets, hampers, and a Diwali bonus.
Experts note that MNCs adhere to global incentive practices, typically tied to performance rather than specific festivals. While some companies offer festive gifts or vouchers, these are often tax-exempt if valued below Rs 15,000 annually. Corporate gifting is a growing sector, but traditional Indian companies maintain the practice of Diwali bonuses as a gesture of appreciation.
