Kathmandu: Employees of Machhapuchchhre Bank and Citizens Bank have been granted an advance bonus equivalent to one month’s salary, sourced from the profits of the recently concluded fiscal year.
As the financial year draws to a close, it has become standard practice for banks and financial institutions to begin distributing these early incentives to their workforce. Following this trend, both commercial banks processed these payments during the first week of Shrawan, joining several other lenders in the sector who are currently disbursing similar rewards to their staff.
While the final performance of both banks suggests that employees may be entitled to a larger total bonus, the current disbursement represents approximately half of the projected amount. According to bank sources, the remaining portion of the bonus will be credited once the financial statements are audited and the Nepal Rastra Bank formally approves them for presentation at the respective Annual General Meetings.
This phased approach allows employees to receive immediate benefits while ensuring the final settlement remains contingent upon formal regulatory clearance and the completion of the auditing process.
These payouts are governed by the Bonus Act, which dictates that every profit-making enterprise must share its financial success with its employees. Specifically, Section 5 of the Act mandates that ten percent of the net annual profit generated by an organization be set aside specifically for staff bonuses. Adhering to these statutory requirements, banks typically release an initial instalment immediately after the fiscal year ends, followed by a final payment during the period of their annual general assemblies when the official accounts are finalized.
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