Nepal Bonus Calculator: 10% of Profit, Shared by the Act
Enter the year's net profit and your staff. See the bonus pool, the bonus percentage, each person's bonus with the Bonus Act 2030 ceiling applied, and what is left for the welfare funds, with every step of the working shown.
- Bonus Act 2030, consolidated text
- Section numbers cited
- Nothing leaves your browser
Bonus Act 2030
- Of net profit, set aside as the pool
- 10%
- Worked, to qualify
- Half the year
- Of salary, the ceiling per person
- 8 or 6 months
- Last day for the FY 2082/83 bonus
- Falgun 30, 2083
The minimum remuneration behind the ceiling
Up to NPR 39,100 a month the ceiling is 8 months' salary; above it, 6 months' salary but never less than NPR 312,800 (Section 7(4)).
| Row | Salary for the year | Bonus each | Ceiling | Status |
|---|---|---|---|---|
| 1 · 10 × NPR 40,000 | NPR 480,000 | NPR 45,455 | NPR 312,800 | Paid in full |
| 2 · 2 × NPR 30,000 | NPR 240,000 | NPR 22,727 | NPR 240,000 | Paid in full |
| 3 · 1 × NPR 60,000 | NPR 240,000 | NPR 0 | NPR 360,000 | Not eligible |
The working
- Bonus pool: 10% of net profit NPR 5,000,000 = NPR 500,000 (Section 5(1)).
- Eligible: 12 of 13 worked at least 6 of 12 months (Section 6(1)). 1 person worked less than half the year and gets no bonus.
- Salary for the year of everyone eligible, monthly salary × months worked, overtime left out (Rule 9): NPR 5,280,000.
- Bonus percentage: NPR 500,000 × 100 ÷ NPR 5,280,000 = 9.470% (Section 7(2)).
- Row 1, 10 people at NPR 40,000 a month for 12 months: NPR 480,000 × 9.470% = NPR 45,455; ceiling 6 months' salary would be NPR 240,000, lifted to NPR 312,800 by Section 7(4); NPR 45,455 each, NPR 454,545 in all.
- Row 2, 2 people at NPR 30,000 a month for 8 months: NPR 240,000 × 9.470% = NPR 22,727; ceiling 8 months' salary, NPR 240,000 (Section 7(3)(क)); NPR 22,727 each, NPR 45,455 in all.
- Row 3, 1 person at NPR 60,000 a month for 4 months: under half the year, so no bonus (Section 6(1)).
- Paid to employees: NPR 500,000 of the NPR 500,000 pool.
- Nothing is left over, so nothing goes to the welfare funds (Section 13(1)).
An estimate to check, not a filing. Under 6 months there is no bonus; above it, the salary for the months worked carries the Section 12 cut, applied once. Misconduct (Section 8), illegal strike days (Section 12क) and government-owned enterprises (Rule 6) are not modelled. Have your auditor confirm the net profit and the reading of the ceiling. Rules from the Bonus Act, 2030 and Bonus Rules, 2039, consolidated Nepali texts, read on 2026-11-04.
Where these rules come from
- Bonus Act, 2030 (बोनस ऐन, २०३०), the Nepal Law Commission's consolidated Nepali text, which carries the Bonus (Fifth Amendment) Act 2074 and Some Nepal Acts Amendment Act 2075. Sections 1, 2, 4 to 9, 11 to 14, 16, 20 and 21.
- Bonus Rules, 2039 (बोनस नियमावली, २०३९), consolidated with its fourth amendment of 2075. Rules 3, 6, 8, 9, 12 and 12क.
- The minimum remuneration the ceiling is measured against: NPR 19,550 a month (NPR 12,170 basic plus NPR 7,380 dearness allowance), in force from Shrawan 1, 2082.
- Not used: the English translation still in circulation. It stops before the 2074 and 2075 amendments, so its ceiling bands are out of date.
Last checked against those texts on 4 November 2026.
In Nepali the payment is बोनस. For FY 2082/83, which closed on Ashad 32, 2083, it is due by Falgun 30, 2083 (14 March 2027). For how it differs from the festival expense paid at Dashain, read bonus and festival expense in Nepali payroll. For paying it as its own run with TDS and a bank file, see NepalHRM payroll.
Profit, Staff, Then Each Share
The calculator follows the Act in its own order: the pool, who qualifies, the bonus percentage, each person's share, the ceiling, then what is left.
- 1
Enter the year's net profit
Net profit as Section 5(2) defines it: net income under the Income Tax Act 2058, less any bonus over-paid in an earlier year under Section 11(3). 10% of it is the pool (Section 5(1)). No profit, no pool.
- 2
Add your staff in rows
One row for each group of people on the same monthly salary. Salary or wage is cash pay for work (Section 2(ङ)): leave out overtime (Rule 9) and the electricity, water, medicine, travel, bonus, provident fund and grant amounts the Act excludes.
- 3
Enter months worked
Out of twelve. Paid leave, reserve periods and disablement from a work accident count as worked (Section 6(2)). Under 6 months there is no bonus (Section 6(1)). Above that, the bonus follows the salary for the months worked, which is the cut Section 12 makes for days not worked.
- 4
Read each share and the working
The bonus percentage is the pool × 100 ÷ the eligible staff's salary for the year (Section 7(2)). Each person gets that percentage of their own salary, up to the Section 7(3) ceiling. What the ceiling holds back goes 70% to the welfare fund and 30% to the national welfare fund (Section 13(1)).
Last updated · Reviewed by Rajendra Regmi, Co-founder
The Bonus Rules, Section by Section
Read from the consolidated Nepali texts on the Nepal Law Commission site, as amended to 2075. A bare number is a section of the Act; "Rule" marks the Bonus Rules 2039.
| Rule | What the text says | Section |
|---|---|---|
| Who it covers | Enterprises where 10 or more people work, in the areas the government has brought the Act into force by Gazette notice | 1(3)(क) |
| The bonus pool | 10% of the fiscal year's net profit | 5(1) |
| Government-owned enterprises | 5% of net profit (1% for a monopoly), with Ministry of Finance approval; none where the enterprise is not run for profit | 5(3), 5(3क), Rule 6 |
| Who qualifies | An employee who worked half the period to be worked in the fiscal year | 6(1) |
| Counted as worked | A reserve period under a contract or the Labour Act, any paid leave, and disablement from an accident at work | 6(2) |
| Who does not | Casual workers and substitute (बदली) workers. Temporary and fixed-term staff do qualify; contract-service staff only if the contract says so | 6(1), Rule 8 |
| The bonus percentage | Pool × 100 ÷ the total salary or wage the eligible employees received in the year | 7(2) |
| Overtime | Left out of the year's salary | Rule 9 |
| Ceiling, lower paid | Monthly salary up to 2 times the minimum remuneration: 8 months' salary | 7(3)(क) |
| Ceiling, higher paid | Above that: 6 months' salary, and never less than the lower band's maximum | 7(3)(ख), 7(4) |
| Days not worked | The bonus is cut in proportion to the days not worked | 12 |
| Misconduct | No bonus after punishment or dismissal for theft of or damage to property, an illegal strike, a riot or a breach of discipline, except for the period before it | 8 |
| How it is paid | In cash | 9(1) |
| Deadline | Within 8 months of the fiscal year closing | 9(2) |
| Extension | Up to 3 more months, or two years' bonus together, on a reasoned application to the Labour Office | 9(3) |
| Accounts late or under inquiry | Pay at least 5% of the estimated net profit as an advance bonus | 11(1) |
| What is left over | 70% to the welfare fund and 30% to the national welfare fund (20% and 80% for a government-owned enterprise) | 13(1), 13(1क) |
| Deposit of the national share | Within one month of distributing the bonus | Rule 12क |
| Filings with the Labour Office | Balance sheet and profit and loss within 6 months of the year closing; distribution details within 7 days of finishing | 4(1), 14 |
| Penalty | A fine of up to NPR 5,000 from the Department of Labour, appealable to the High Court within 35 days | 20, 21 |
The English translation still circulating, including the copy on doind.gov.np, predates the Bonus (Fifth Amendment) Act 2074 and the Some Nepal Acts Amendment Act 2075. Its ceiling of 6, 4 and 3 months on salaries of NPR 5,000 and NPR 15,000 is no longer the law, and its "shift basis" exclusion is a mistranslation of बदली, a substitute worker.
This bonus is not the festival expense paid at Dashain. For the two side by side, read the bonus and festival expense guide
Three Companies, Worked Through
Each uses the current minimum remuneration of NPR 19,550 a month, so the line between the two ceilings falls at a monthly salary of NPR 39,100 and the lower band's maximum is NPR 312,800. Enter any of them above to see the full working.
Twelve staff on one salary, a full year each
Net profit NPR 2,400,000, so the pool is NPR 240,000. The eligible staff earned NPR 4,320,000 in the year, which makes the bonus percentage 5.556%. 12 people at NPR 30,000 for 12 months: NPR 20,000 each. The whole pool reaches employees and nothing goes to the welfare funds.
Two half-year joiners and one who joined too late
Net profit NPR 3,000,000, so the pool is NPR 300,000. The eligible staff earned NPR 6,000,000 in the year, which makes the bonus percentage 5.000%. 10 people at NPR 45,000 for 12 months: NPR 27,000 each. 2 people at NPR 50,000 for 6 months: NPR 15,000 each. 1 person at NPR 50,000 for 5 months: under half the year, no bonus. The whole pool reaches employees and nothing goes to the welfare funds.
A very profitable year where the ceiling bites
Net profit NPR 60,840,000, so the pool is NPR 6,084,000. The eligible staff earned NPR 10,140,000 in the year, which makes the bonus percentage 60.000%. 10 people at NPR 30,000 for 12 months: NPR 216,000 each. 1 person at NPR 45,000 for 12 months: NPR 324,000 by the formula. Six months' salary would cap it at NPR 270,000, but Section 7(4) lifts that ceiling to NPR 312,800, so NPR 312,800 each. 5 people at NPR 100,000 for 12 months: NPR 720,000 by the formula, cut to the ceiling of NPR 600,000 each. NPR 611,200 is left over: NPR 427,840 to the welfare fund and NPR 183,360 to the national welfare fund.
Pay the Bonus as Its Own Payroll
This page works out what the Act allows. NepalHRM pays it: a bonus runs as its own payroll, with its own payslips, TDS and bank file, so the month's salary run is never reopened to fit it in.
- Pick who is paid, then a fixed amount or a percentage of basic or total salary.
- Prorate it by days of service, set a minimum service period, or leave out staff on probation.
- Each slip carries the TDS on the bonus, and the approved run produces its own bank file.
- Bonus-only runs are part of payroll on Business and Enterprise.
Bonus in Nepal, Answered
Under the Bonus Act 2030, a profit-making enterprise sets aside 10% of the year's net profit (Section 5(1)). That amount × 100, divided by the total salary the eligible employees received in the year, is the bonus percentage (Section 7(2)). Each eligible employee receives that percentage of their own salary for the year, up to the Section 7(3) ceiling. A company with no net profit has no bonus pool.
An employee who worked at least half the period to be worked in the fiscal year (Section 6(1)). Paid leave, a reserve period and disablement from an accident at work count as time worked (Section 6(2)). Casual and substitute workers are excluded, temporary and fixed-term staff are included, and contract-service staff qualify only if their contract provides for it (Rule 8). Someone who worked part of the year has the bonus cut in proportion to the days not worked (Section 12).
Section 7(3), as amended in 2075, caps it at 8 months' salary for an employee whose monthly salary is up to twice the government's minimum remuneration, and 6 months' salary above that. Section 7(4) keeps the higher ceiling from falling below the lower band's maximum. At a minimum remuneration of NPR 19,550, the line is NPR 39,100 a month and the lower band's maximum is NPR 312,800. The 6, 4 and 3 month bands in older English translations were replaced.
Within 8 months of the fiscal year closing, in cash (Section 9). FY 2082/83 closed on Ashad 32, 2083 (16 July 2026), so its bonus is due by Falgun 30, 2083 (14 March 2027). On a reasoned application the Labour Office may extend that by up to 3 months, or allow two years' bonus to be paid together the next year (Section 9(3)).
Whatever is left of the 10% after distribution, usually because the ceiling cut some shares, is not kept by the company. Section 13(1) sends 70% of it to the welfare fund and 30% to the national welfare fund, and Rule 12क requires the national share to be deposited within one month of distribution.
Section 20 lets the Department of Labour fine anyone who breaches the Act or an order under its Rules up to NPR 5,000, with an appeal to the High Court within 35 days (Section 21). Separately, an employee can take a bonus dispute to the Labour Office, which decides it on the enterprise's records, with an appeal to the Labour Court (Section 16).
बोनस is the Nepali word for this bonus, and the law is the बोनस ऐन, २०३० (Bonus Act 2030), with the बोनस नियमावली, २०३९ (Bonus Rules 2039). It is a share of profit and depends on there being one. The Dashain bonus most people mean is the festival expense under the Labour Act 2074, a separate payment owed every year whether or not the company made a profit.
Guides to bonus and the year-end
How the profit bonus differs from festival expense, where it sits in the compliance year, and how it is booked.
- Bonus and Festival Expense in Nepali PayrollFestival expense is one month's basic for every worker, every year. Bonus is 10% of net profit, only if you made one. Two obligations, two statutes, two deadlines.
- Payroll Compliance Calendar Nepal FY 2083/84Every payroll deadline for FY 2083/84 in one place: TDS and SSF at 25 days, the labour audit in Poush, bonus by Falgun, and the returns in between.
- Payroll Accounting in Nepal: Entries and ReconciliationThe four journal entries a Nepali payroll month produces, why the employer's contribution is an expense and not a deduction, and the three checks that catch errors.
- Labour Audit in Nepal: A Compliance Checklist (2083/84)Every enterprise in Nepal owes a labour audit. Here is Schedule 10 of the Labour Rules 2075 in English, question by question, plus the deadline and the penalties.
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