Small Scale Businesses Borrow Loan to provide Diwali Bonus - Sad Story
Entrepreneurs claim they've been obliged to borrow in order to provide diwali bonuses since they need to keep their employees. Over one lakh businesses, including small, medium, and major businesses, are located in the coimbatore district. More than 5 lakh people are employed as a result of this. It encompasses a wide range of businesses, from automobile manufacture to defense equipment production.
Pre-payment procedures for workers in coimbatore are already ongoing, with Deepavali set to be celebrated on the 4th. workers at micro-enterprises were given satisfactory bonuses till the last three years ago. Small business owners, on the other hand, say they can't afford to pay even the present basic 2% incentive. Small firms in coimbatore have had a different bonus status throughout the last three years. Bonuses for small business employees ranged from 16 to 22 percent.
However, that is not the case right now. We are all required to pay an 8.33 percent base rate. This is due to the fact that during the preceding diwali season, small companies received more orders. The cost of raw materials hasn't grown nearly as much. Large corporations who planned to place orders this year have postponed them due to rising raw material prices.