Nabil Bank leads the way as commercial banks begin disbursing advance bonuses to staff

Kathmandu: With the conclusion of the previous fiscal year, banks and financial institutions across Nepal have initiated the process of distributing advance bonuses to their employees. This trend has gained significant momentum during the first week of Shrawan, as commercial banks utilize the profits generated over the past year to reward their workforce. Among the major lenders, Nabil Bank has set a high benchmark by providing its staff with an advance bonus equivalent to three months’ salary, marking the highest payout in the industry so far this season.

While the final performance figures suggest that employees may eventually be entitled to a larger total sum, the current disbursement represents roughly half of the projected annual bonus. Bank sources indicate that the remaining portion will be settled once the Nepal Rastra Bank formally approves the financial statements and the institutions proceed with their respective Annual General Meetings. This phased distribution ensures that employees receive immediate benefits while the banks await final regulatory and audit clearances.

The practice of sharing success with the workforce is anchored in the country’s legal framework. According to Section 5 of the Bonus Act, every profit-making establishment is required to allocate ten percent of its annual net profit specifically for employee bonuses. Adhering to these statutory requirements, it has become common for banks to release a substantial portion of these funds right after the fiscal year ends, with the final balance being cleared during the annual assembly period.

However, the timing of these payouts can vary depending on the internal policies of individual banks. For example, international and legacy players like Standard Chartered and Everest Bank often synchronize their bonus distributions with the Dashain festive season. These institutions typically release the funds just before the holidays, provided their financial reports have received the necessary approval from the central bank, ensuring that their staff has extra liquidity for the country’s biggest celebration.