Hi,
A Festival Bonus, often referred to as a Dasara or Diwali Bonus or a Year-End Bonus, is a monetary benefit given by employers to their employees during festive seasons or at the end of the year. It is an additional sum of money provided to employees in addition to their regular salary. This bonus is meant to acknowledge and appreciate the hard work and contributions of the employees towards the success and profitability of the company.
The information you provided relates to the regulations under the Payment of Bonus Act. According to this act, if an employee's salary does not exceed Rs 21,000 per month, they are entitled to receive a minimum statutory bonus of 8.33% of their annual earned salary in the preceding financial year.
Additionally, it is mentioned that a new establishment is not required to pay any bonus for the first five years. However, after this initial period, it becomes mandatory to pay bonuses starting from the year in which the establishment starts making profits.
It's important to note that these rules and regulations may vary by country, so it's essential to refer to the specific labour laws and regulations in the relevant jurisdiction
Thanks,.