We are informed that we need to pay Dashain allowance to employees? Who is eligible and when should it be paid?
The new labor law has revised the provisions of Dashain allowance to replace by festival allowance to make it in line with the move to secularism in current constitution in Nepal.
As per section 37 of new Labor Act, every worker shall be entitled to receive an amount equivalent to one month basic salary in a year as festival allowance for the celebration of any festival based on his/her own religion, culture and tradition. A worker may give a written request to the employer for the payment of the festival allowance which he/she is entitled to receive each financial year on a major festival based on his/her religion, culture and tradition. In absence of such request, the allowance shall be provided every year at the time of Dashain festival.
Any worker who has not completed one year of employment service on the day such allowance is distributed shall be entitled to receive such allowance in proportion to the length of period s/he has worked.
