Nabil Bank Gives Employees Three Months’ Salary as Advance Bonus

Commercial banks have begun distributing advance bonuses to their employees following the conclusion of the last fiscal year.

Among the commercial banks, Nabil Bank has provided the highest advance bonus, equivalent to three months’ salary, to its employees from the profit earned in the last fiscal year. The bank could distribute additional bonuses if its financial position allows.

However, it has reportedly distributed around half of the total bonus amount at this stage, while the remaining amount will be distributed after Nepal Rastra Bank approves the bank’s financial statements for presentation at the Annual General Meeting (AGM), according to bank sources.

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% of its net profit earned during a fiscal year for distribution as employee bonuses.

Based on this provision, banks generally distribute a portion of the employee bonus soon after the end of the fiscal year, while the remaining amount is distributed around the time of the AGM.

Some banks, including Standard Chartered Bank Nepal and Everest Bank, have adopted a different practice. These banks generally distribute employee bonuses before the Dashain festival if their AGMs are held before the festival.

If the AGM is not held by then, the bonuses are distributed before the Dashain holidays after Nepal Rastra Bank approves their financial statements.