Dashain Bonus Calculator Nepal
How much festival expense (chadparva kharcha) are you entitled to? Under Labour Act, 2074 Section 37 it is one month’s basic remuneration each year — proportional if you served under a year.
Basic remuneration only — allowances excluded, per Labour Act s.37(1).
Under a year of service is paid in proportion to service completed — s.37(3).
What Dashain bonus means in Nepal
“Dashain bonus” is the common name for what the law calls festival expense (chadparva kharcha). Labour Act, 2074 Section 37(1) entitles each labour to one month’s basic remuneration every year for the festival celebrated according to their religion, culture and tradition — and Section 37(2) says that on a written request for your main festival, it is paid at Dashain. This calculator applies that rule directly.
Festival expense vs statutory bonus
Festival expense (Labour Act, 2074 s.37). One month’s basic remuneration, paid whether or not the company made a profit. Under a year of service is paid proportionally (s.37(3)). This is what the calculator above computes.
Statutory bonus (Bonus Act, 2030). A share of enterprise profit, not a fixed month of salary: the enterprise sets aside 10% of net profit, and each eligible employee receives B × their total salary for the year, where B = (bonus pool × 100) ÷ (total salary of all eligible staff). Payouts are capped — up to 8 months’ salary for lower-paid staff and 6 months for higher-paid staff — paid in cash within 8 months of the fiscal year end. Whatever remains goes 70% to the enterprise welfare fund and 30% to the National Welfare Fund. In a loss-making year there is no pool — and no bonus.
Do not confuse the two: festival money arrives even in bad years; the profit bonus does not.
How service months change the amount (s.37(3))
The Act is explicit: a labour who has not completed one year of service by payment day gets festival expense in proportion to the service completed. The formula is basic remuneration × months served / 12 — for example, Rs. 30,000 basic with 6 months served gives Rs. 15,000. Twelve months gives the full one month’s basic.
Why your actual payout may still differ
The calculator assumes you are covered as a labour under the Act with the basic remuneration you entered. Government and contract-specific rules, probation terms, company policy and collective agreements can change timing and treatment, and employer withholding applies to the payout — this calculator deducts no tax.
Where to verify current official rules
- • Labour Act, 2074, Section 37 — festival expense, full legal text
- • Bonus Act, 2030 — profit bonus, eligibility (s.6), caps (s.7), residual pool (s.13); check the current text including amendments
- • Department of Labour and Occupational Safety — annual festival-allowance notices to employers
- • Your employer’s HR policy and appointment letter — the document that governs your payout timing
- • IRD Nepal or your employer’s payroll team — current tax and withholding treatment
Section 37 was verified against the published Act text and the Bonus Act figures against a legal explainer on 2026-10-11. Statutes are amended from time to time — confirm the current text before acting.
Frequently Asked Questions
How much Dashain bonus am I entitled to under Nepal law?
Labour Act, 2074 Section 37(1) entitles each labour to one month’s basic remuneration each year as festival expense, for the festival celebrated according to their religion, culture and tradition. If you have not completed one year of service by payment day, Section 37(3) gives it in proportion to the service you completed — that is exactly what this calculator computes.
When is the festival expense paid — always at Dashain?
You may request it in writing for your main festival; on such a request the Act (Section 37(2)) says it is provided at Dashain every year. Confirm the payout timing with your employer’s HR.
What is the difference between festival expense and the statutory bonus?
Festival expense (Labour Act s.37) is one month’s basic remuneration, paid whether or not the company made a profit. The statutory bonus (Bonus Act, 2030) is a share of enterprise profit: 10% of net profit forms a pool, each employee’s share is B × their total yearly salary where B = (pool × 100) ÷ (total salary of all eligible staff), capped at 8 months’ salary (or 6 months for higher-paid staff), paid in cash within 8 months of the fiscal year end. In a loss-making year there is no statutory bonus — but festival expense is still due.
Who qualifies for the statutory profit bonus?
Under Bonus Act Section 6, employees who worked at least half the fiscal year — casual and shift-basis workers are excluded, as are employees dismissed for misconduct such as theft or illegal strikes. Paid leave, reserve periods and accident disablement count as working time.
Is Dashain bonus taxable in Nepal?
Bonuses and allowances paid by employers are generally treated as taxable employment income in the year they are paid, with tax typically handled through employer withholding. Confirm the current treatment with your employer or IRD Nepal.
Where can I verify the current official rules?
Read Labour Act, 2074 Section 37 (festival expense) and the Bonus Act, 2030 (profit bonus, eligibility, caps) in full, plus current notices from the Department of Labour and Occupational Safety and your employer’s HR policy. The Act provisions quoted on this page were verified on 2026-10-11.
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