Laxmi Sunrise Bank Employees to Receive Advance Bonus After Shrawan 15

Employees of Laxmi Sunrise Bank are expected to receive their advance bonus only after Shrawan 15, as the bank is waiting to finalize its financial results for the last fiscal year.

While banks and financial institutions have started distributing advance bonuses to employees from the profits earned in the previous fiscal year following the end of the fiscal year, employees of Laxmi Sunrise Bank will have to wait until Shrawan 15.

The delay is linked to a provision by Nepal Rastra Bank allowing banks to recognize interest due by the end of Ashadh as income for the previous fiscal year if the interest is recovered by Shrawan 15. Accordingly, banks are focusing on recovering outstanding interest within the extended period.

Laxmi Sunrise Bank is preparing its financial statements for the previous fiscal year by including interest recovered up to Shrawan 15. The advance bonus for employees will then be determined based on the finalized financial results.

The Bonus Act requires every profit-making establishment to allocate a portion of its net profit for employee bonuses. Section 5 of the Act states that “every establishment earning a profit must set aside an amount equivalent to 10 percent of its net profit earned in a fiscal year for distribution to its employees as a bonus.”