Work out your Dashain bonus — the festival allowance — under Section 37 of the Labour Act 2074: one month's basic salary every year, for the festival of your own religion, culture and tradition. If you have worked less than a year, you get a proportionate share. The allowance is based on basic salary only, not your gross pay. Everything runs in your browser; nothing is uploaded.
Basic salary only — dearness allowance, transport, communication and overtime are left out. It is the figure your PF and SSF are calculated on.
12 months or more means a full year of service. If you joined mid-year, enter the months you have worked — the allowance is paid pro-rata.
Festival allowance = monthly basic salary × months of service ÷ 12. A worker with a full year of service gets exactly one month's basic salary. Someone who joined 8 months ago gets 8 ÷ 12 of a month's basic salary. The right comes from Section 37 of the Labour Act 2074 and applies to every worker covered by the Act — in companies, firms, NGOs, schools, hotels and factories — once in each fiscal year, for the festival of their own religion, culture and tradition. It is normally paid before Dashain unless the worker asks in writing for another time. The allowance is employment income, so tax (TDS) is withheld in the month it is paid, and it is not counted for SSF contributions.
No. The festival allowance is a legal right under Section 37 of the Labour Act — every worker gets it whether or not the company made a profit. The annual bonus under the Bonus Act 2030 is different: it is paid only when the company earns a profit, and it is shared out of that profit.
Yes. Workers with less than a year of service get a proportionate amount: monthly basic salary × months worked ÷ 12. With a basic salary of NPR 30,000 and 6 months of service, that is NPR 15,000.
Yes. The festival allowance is employment income under the Income Tax Act 2058, so your employer adds it to your projected annual income and withholds tax (TDS) in the month it is paid. It is not, however, counted when working out your SSF contributions.
Disclaimer: This is an estimate based on Section 37 of the Labour Act 2074 and the Labour Rules 2075 (basic salary at least 60% of total salary). The exact basic salary on your payslip is what counts — always confirm the final amount with your employer or HR department. This tool is not affiliated with the Government of Nepal and is not legal or tax advice.