Dashain and Tihar Bonus Rules in Nepal: What Employers Must Pay

Author : Hajir hr | Published On : 28 Sep 2026

Dashain and Tihar are important festivals in Nepal, and festival bonuses play an important role in employee compensation. However, many employees and employers remain unclear about the rules surrounding these payments.

Nepal’s labour framework distinguishes between the statutory festival allowance and the profit-based bonus. The Labour Act, 2074 provides the legal basis for the festival allowance. Eligible employees generally receive an amount equal to one month’s basic salary before the festival. Employees who work for only part of the year may receive a prorated amount based on their service period.

The profit bonus follows different rules under the Bonus Act, 2030. Companies that earn qualifying profits must allocate a portion of their net income toward employee bonuses. The distribution depends on applicable wage brackets and eligibility requirements.

Tihar payments can also differ from the statutory Dashain allowance. Many employers provide Tihar bonuses through company policies, employment agreements, or collective agreements. Therefore, employees should check their employment terms for specific details.

Both festival allowances and profit bonuses can have tax implications. Employers must calculate payments accurately and apply the required deductions.

For HR teams, proper payroll management helps ensure timely and accurate bonus payments. Businesses should maintain clear employee records and separate basic salary from other allowances during calculations.

Understanding Dashain and Tihar bonus rules helps employers maintain compliance. It also helps employees understand their compensation rights and payroll details during the festival season.