Kathmandu: Staff members of Laxmi Sunrise Bank are scheduled to receive their advance bonuses only after the 30th of July (Shrawan 15).
While many banks and financial institutions have already begun distributing advance bonuses from the previous fiscal year’s profits immediately following the close of the year, Laxmi Sunrise employees are required to wait until the end of the month to receive their payments.
This timeline is largely due to a regulatory provision by Nepal Rastra Bank, which allows financial institutions to count interest recovered up until July 30 as part of the previous fiscal year’s profit. As a result, banks across the sector are currently prioritizing the collection of outstanding interest within this extended window to optimize their year-end financial figures.
According to bank sources, the final financial statements for the past fiscal year will be prepared only after accounting for the interest collected through this July 30 deadline. The bank plans to determine and distribute the advance bonuses to its employees based on these finalized results, ensuring that the incentives accurately reflect the bank’s total earnings for the period.
This distribution is governed by the Bonus Act, which mandates that every profit-making establishment must share a portion of its earnings with its workforce. Specifically, Section 5 of the Act requires that ten percent of the net annual profit generated by an organization be set aside and distributed to employees as bonuses.
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