Banks Allocate NPR 9.5 Billion in Employee Bonuses

Banking Khabar/ Commercial banks have set aside over NPR 9.5 billion in bonuses for their employees from last year’s earnings. In accordance with the Bonus Act, every bank and financial institution allocates 10% of their total pre-tax profit to employee bonuses.

For the last fiscal year, commercial banks have reserved NPR 9.67 billion for employee bonuses, reflecting a 2.21% increase compared to the previous year. The year before, banks allocated NPR 9.46 billion for bonuses. 

Nabil Bank leads in distributing the highest bonuses, reserving NPR 1.19 billion for its employees from last year’s profits. Similarly, Global IME Bank will allocate NPR 1.08 billion in bonuses, although this represents a 9.17% decrease from the previous year.

In total, 13 banks have reduced their bonus amounts this year, while 7 banks have increased theirs. Nepal Bank, owned by the government, will provide the lowest bonus amount, with just NPR 152.1 million allocated.

Banks will distribute the announced bonuses after they are approved at their general meetings. Some may distribute them at the end of the fiscal year, while others plan to release them during festive periods like Dashain and Tihar.