Kathmandu: Employees of Nepal Television, now operating under the newly formed Public Service Broadcasting Nepal, are pressing management for a bonus equivalent to one month’s salary, warning they could disrupt broadcasts if their demand is not met.
The request was put forward by the Nepal Television Employees’ Association and the Nepal Television Employees’ Union to mark the broadcaster’s 41st anniversary. In a formal statement issued earlier this month, the unions urged the board and senior management to approve what they describe as an incentive allowance.
Nepal’s Parliament enacted the Public Service Broadcasting Act in 2024, transforming the former Nepal Television and Radio Nepal into a unified public service broadcasting entity. The new institution has already celebrated its first anniversary under the restructured framework.
While new regulations under the Act have come into force, detailed bylaws governing employee benefits and financial administration are still being drafted. Until those are finalized, the previous service and financial rules of the two legacy institutions remain in effect, none of which provide for the bonus currently being sought.
The financial backdrop complicates the demand. Although both broadcasters generate limited income through advertising and sponsorships, their annual revenues are insufficient to cover even four months of operating expenses. The Government of Nepal continues to provide conditional grants for both capital and operational expenditures, and in the case of Radio Nepal, additional allocations are made for salaries and pensions. Despite a policy push to merge the two outlets to reduce overheads, declining revenues, rising operating costs, weak financial discipline, and years of politically influenced contractual hiring have left the institution financially fragile.
Historically, compensation structures between the two broadcasters have differed significantly. Employees at the former Radio Nepal received the equivalent of 13 months’ salary annually, including festival allowances, while staff at Nepal Television received between 17 and 18 months’ pay during years when commercial revenues were strong. Even now, despite reliance on state subsidies to meet basic operating costs, union leaders are insisting on additional benefits tied to the anniversary.
Management argues that the demand lacks legal grounding. The current Public Service Broadcasting Regulations do not mention such incentive payments, and neither do the legacy rules still in force. Officials also note that the anniversary being cited relates to the former Nepal Television structure, which no longer exists as a standalone entity under the law.
Government data show that among roughly 45 state-owned enterprises in Nepal, only six are consistently profitable, while five are incurring heavy losses. Incentive bonuses are typically reserved for profit-making entities. Public broadcasters fall under the social sector category alongside institutions such as Gorkhapatra Sansthan, and none are currently in a strong financial position.
Oversight concerns further cloud the issue. According to the Office of the Auditor General, Nepal Television has not completed an audit for the past five years. Radio Nepal and Gorkhapatra Sansthan have also been cited for failing to conduct timely audits, comply with financial procedures, and maintain effective internal controls. In this context, officials at the Ministry of Communications say approving additional bonuses for loss-making entities would be difficult to justify.
The latest Auditor General’s report shows the Public Service Broadcasting institution operating at a deficit of approximately Rs 2.47 billion. Even before the merger, in fiscal year 2019/20, Nepal Television generated annual operating revenue of about Rs 343.9 million against staff and operational expenses of Rs 659 million, with accumulated losses reaching Rs 2.4 billion.
The bonus demand also revives debate over past practices. During Nepal Television’s 25th anniversary in 2009, employees and board members were granted a one-month incentive at a time when revenues exceeded operating costs. However, despite steady revenue declines since 2014/15, similar anniversary payments reportedly continued. Critics argue that decisions allowing board members and staff to approve benefits for themselves may have crossed legal and ethical lines.
Sources say that unlike in the past, when such payments were sometimes made without formal approval from the Ministry of Communications or the Ministry of Finance, the current financial and legal environment leaves little room for discretionary bonuses.
Comment Here