Diwali bonuses for textile workers in south India are expected to be less than 10 per cent of their annual salary. In comparison automobile parts manufacturers and other sectors offer employees a festival bonus of 12 to 16 per cent of their annual salary. Textile workers say companies are doing financially well, especially the big ones, and so there’s no reason for them not to offer a higher bonus. They say they want a bonus of at least two months' salary or 16.33 per cent of annual salary.
But employers say business is yet to pick up and that the cash flow is yet to improve. They say business volumes and profits margins aren't anything better than what they were in 2013 and they had to face losses in 2014 and 2015. Companies that used to run two shifts earlier say they don't have enough orders to run one shift fully. Employers also say that the bonus is not calculated in terms of percentage of salary and that it is usually given based on an individual worker’s performance and contribution.
However, small scale industries might hike bonus by three to five per cent of what was offered last year.

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