B ByaparOS
Industry Solutions
Labor Act 2074 Section 37 Festival Engine
Section 37 चाडपर्व खर्च Allowance

Dashain Festival Allowance / Bonus Calculator Nepal

Estimate statutory Dashain & festival expenses under Section 37 of Nepal Labor Act 2074. Calculate full 1-month basic pay for employees with $\ge 1$ year service or proportionate payouts for mid-year hires.

Employment Service Presets (सेवा अवधि नमुनाहरू)

Bonus & Tenure Inputs

Section 37 Form
Rs.

Festival allowance in Nepal is strictly equal to one month's basic salary.

1 Month 6 Months 12 Months (Full) 24 Months

Section 37 allows non-Hindu employees to opt for their own religious festival via written request.

Gross Festival Allowance (चाडपर्व खर्च)
Estimated TDS Withheld:
Net Take-Home Allowance:
Disbursed prior to festival

Statutory Entitlement Breakdown (कानुनी मापदण्ड)

Bonus Entitlement Ratio:
0% 50% (6 Months) 100% (12+ Months)

Nepal Labor Act 2074 Festival Allowance Rules (दफा ३७)

Section 37 of the Nepal Labor Act 2074 makes festival expenses mandatory for all formal sector employers:

1. Service $\ge 1$ Year

1 Month Basic Pay

Every employee completing one continuous year of service is entitled to one full month's basic salary.

2. Service $< 1$ Year

Proportionate Amount

Employees with less than 1 year tenure receive $\frac{\text{Completed Months}}{12} \times \text{Basic Salary}$.

3. Income Tax Treatment

Subject to Payroll TDS

Treated as employment income under the Income Tax Act 2058 and taxed under standard progressive slabs.

Frequently Asked Questions on Dashain Festival Allowance

Section 37 of the Nepal Labor Act 2074 (दफा ३७ चाडपर्व खर्च) states that all employees who have completed one year of permanent or contractual service are entitled to receive an annual festival allowance equal to one month's basic salary.
For employees with less than one year of service, Section 37(2) mandates a proportionate payment. Formula: Proportionate Bonus = (Completed Months of Service ÷ 12) × Monthly Basic Salary. For example, 6 months of service yields 50% of monthly basic salary.
The festival allowance must be disbursed prior to the employee's main festival according to their religion and culture. In Nepal, the default statutory practice pays the allowance right before Vijaya Dashami (Bada Dashain), or at Christmas, Eid, or Chhath upon the employee's written request.
Yes. Festival Allowance is considered taxable employment remuneration under the Nepal Income Tax Act 2058. It is added to annual taxable income and payroll TDS is deducted using the applicable progressive tax slab.
No. The statutory entitlement is limited to once per fiscal year (equivalent to maximum 1 month basic salary), regardless of whether the employee celebrates multiple festivals.
Dashain Payroll Batch Generator

Generate Dashain Bonus Sheets & Bank Batches in One Click

Auto-calculate completed months, generate ConnectIPS bank batch transfers, and issue festive digital salary slips to all employees with ByaparOS.

Get Started Free →