Nepal Government Directs Business and Private Sectors to Pay Festival Allowance to Employees
Summary
The Department of Labor and Occupational Safety has directed private businesses and school associations to ensure workers and staff receive their legally mandated festival allowance. Employers who fail to comply with the Labour Act can face complaints and legal action through local labor offices.
Key Points
- The Department of Labor and Occupational Safety has instructed trade bodies and private sector organizations to disburse the legally mandated festival allowance to employees.
- The directive was sent to FNCCI, CNI, the Nepal Chamber of Commerce, PABSON and N-PABSON.
- Under Section 37 of the Labour Act, 2074, workers are entitled to one month’s basic salary each year as festival allowance, with proportionate pay for those employed less than a year.
- Employers who do not comply may face complaints and legal action through local labor offices.
