Dashain Bonus Calculator
Updated November 2026 · Free · No sign-up
Calculate your Dashain bonus — Nepal’s Labour Act festival-expense allowance: one month’s basic salary annually, paid before the festival of the employee’s choice (Dashain for most), prorated for partial service.
Quick answer: The Labour Act 2017 grants a festival expense equal to one month’s basic salary each year, before a festival of the employee’s choosing — Dashain by default. Partial-year staff get it proportionally. NPR 50,000 basic = NPR 50,000 before Dashain.
The Two Layers
| Festival expense (Labour Act s37) | One month’s basic per year, before the chosen festival — universal, prorated for partial service |
| Bonus Act (profit bonus) | Separately: profitable enterprises distribute bonuses from profits per the Bonus Act’s formula — on top, where it applies |
Worked Examples
Example 1. NPR 50,000 basic, full year: NPR 50,000 landing before Dashain — the payment that funds the national travel-and-gifts season.
Example 2 — proration. Joined in Baishakh (5 months by Dashain): 5/12 × 50,000 ≈ NPR 20,833.
Example 3 — choice of festival. Non-Dashain-observing staff elect their own festival (Eid, Lhosar, Chhath) — same one-month entitlement, different payout date.
Tax
Festival expense is taxable remuneration — expect the month’s TDS bump, reconciled in the annual computation.
Practice Notes
Payable BEFORE the festival; the SSF base and this allowance both ride basic salary — structure suppressing basic cuts both. The Bonus Act layer (10 months’... profit-formula distributions) is enterprise-profit-dependent and separate; ask which layer a "Dashain bonus" line actually is.
Frequently Asked Questions
How much is the Dashain bonus?
One month’s basic salary per year under the Labour Act’s festival-expense provision — prorated for partial-year service, paid before the festival.
Who chooses the festival?
The employee — Dashain is the default, but staff observing other festivals elect theirs with the same entitlement.
Is the Dashain allowance taxable?
Yes — taxable remuneration with the month’s TDS; it reconciles in the annual computation.
Is this the same as the Bonus Act bonus?
No — the festival expense is universal; Bonus Act distributions come from enterprise profits separately where applicable.
Do new joiners get it?
Proportionally — months worked ÷ 12 × one month’s basic, per the Act.
✓ Formula verified • Last updated: November 3, 2026