So that's how Diwali bonus started!

Nuts, so that’s how Diwali bonus started! Everyone is waiting for Diwali bonus, but do you know when it started and why the bonus is given? Let us understand in simple language. Diwali is a festival of happiness. During this time there is an atmosphere of celebration around. People’s expenses increase during festivals. In such a situation, the purpose of the government is to provide financial assistance to the employees during the festive season. It is thought that the tradition of Diwali bonus began in 1940 during the British rule in India. It was then that Diwali Bonus was announced for the first time. The payment of the bonus law was accepted in 1965. Later, bonus became a legal right and the practice still lasts in India today. Under the payment of the bonus law, businesses must pay at least 8.33% of an employee’s salary as a bonus. According to the Ministry of Finance, 3.8 million employees received 30 days of bonus in 2024-25, which was equivalent to Rs 7,000 in 2023-24. However, the money received as a bonus is kept under the tax net, as it is considered part of the salary. The total bonus amount is added to the total annual income and is taxable according to your income tax page. Click here for more stories of life and style, click here