Finance Formula • Published on September 04, 2026 • Last updated September 04, 2026
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Regular monthly wage paid to the domestic worker
Total completed months of continuous service in the current annual cycle
Multiplier reflecting punctuality and dedication (0.75 for basic, 1.0 for standard, 1.25 for exceptional)
Customary non-cash festive additions (sweets, dry fruits box, festive clothes, or kitchen utensils)
In Indian household culture, offering a festival bonus (Baksheesh / Diwali Bonus / Puja Gift) to domestic staff (maids, cooks, drivers, security guards) is a vital customary tradition that recognizes loyal service and provides meaningful financial support during major festive celebrations. While informal domestic workers are not legally covered under the Payment of Bonus Act 1965, the industry standard formula aligns with the 1-month salary benchmark (8.33% to 100% of annual wage prorated by completed tenure months).
The widely accepted urban standard is 1 full month's salary for workers who have completed 1 year of service. For staff with less than a year of service, the bonus is prorated according to completed months (e.g. 6 months tenure = 50% of monthly salary).
The festival bonus should be paid 7 to 10 days before the festival day (e.g. 1 week before Dhanteras/Diwali) so the worker can purchase clothes, sweets, and gifts for their own family.
Cash is universally preferred because domestic workers need liquidity for festive expenses and travel. A small gift (such as sweets or a festive box) can be given alongside the cash bonus.
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