Bonus Payments in the Indian Formal Sector, 2008-2014

Bonus continues to be an important component of the pay mix of employees. This practice is followed by most of the organizations to keep employees committed, motivated and dedicated towards their organizations. “Bonus Payments in the Indian Formal Sector” study attempts to identify the trends and pattern related to Executive Bonus Payment in Indian firms. The segment of executives covered in the study includes Managers, Supervisors, Senior Management, and Entry-level professionals.The paper analyzes trends in five types of bonus paid to the respondents, viz End-of-Year Bonus, Festival Bonus, Performance Bonus, Profit-Share Bonus and, Other Annual Bonus between 2008 and 2014. A general observation shows decline in percentage of executives receiving bonus payments over the years across industries, with focus shifting from Performance bonus to End-of-year Bonus.