Kathmandu: Global IME Bank, Nepal’s largest bank by capital and business volume, has credited its employees with a “closing bonus” equivalent to one and a half months of basic salary from the profit of the last fiscal year.
According to a bank employee, the bonus amount was deposited into staff accounts on the first day of the new fiscal year (17 July).
While the bank has currently issued 1.5 months’ worth of bonuses, it plans to distribute additional bonuses during its Annual General Meeting (AGM) following the completion of external auditing. With over 4,200 employees, Global IME Bank remains the biggest employer in Nepal’s banking sector.
As per the Bonus Act 1973, all profit-making institutions are mandated to allocate 10 percent of their net annual profit toward employee bonuses. Section 5(1) of the Act clearly states, “Each profit-earning institution must reserve 10 percent of its net profit from a fiscal year to distribute as employee bonuses.”
Many banks, including Global IME, have started disbursing partial bonuses labeled as “closing bonuses” ahead of their AGMs. Others, however, wait until the AGM to distribute the full bonus in one lump sum.
Like other private sector banks, Global IME has been following the legal provision to reward employees in proportion to annual profitability, reinforcing the banking sector’s adherence to incentive-based compensation practices.
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