Dashain Festival Bonus Payment Custom in Nepal

[karen]

Dear ktmktm,

My Didi says I have to pay her Dashain Festival bonus equal to 1 month's salary.  Is this a requirement that employers pay their Nepali workers Dashain Festival Bonus equal to 1 month's salary?  If I'm only employing her for 3 months, am I still expected to pay her 1 month's salary bonus or should I pro-rate it based on number of months worked?  Please advise.

Thanks,

Karen.

[shaurab]

Hi karen,

You are suppose to pay dashain bonus to your employees only if they are permanent in my notice and it depends on what your agreement is. I get paid dashain bonus exactly as my salary so two months pay at once not deductible from next month salary. Good luck.

[Bernd Pawlik]

If she only has been working for 3 month, you don't have to pay her a bonus. But on the other hand if you intend to keep her in the future, you might pay her anyway ;-)

[karen]

Thanks to all the ktmktm group members who replied.  Below are some of the helpful advice I received.  Best, Karen.

"HA ha she is taking you for a ride, mostly bonus is not offered to employees for the first year ...  well dashin is just like xmas in west if you think you are happy with her you can give her something .. but it seems she is a smart ass ..."--Vinayak.

"paying a Dashain Bonus is not a law and not really a requirement for private employments. Staff is expecting that of course, especially if they work for foreigners. If a Didi or whoever, leaves before Dashain you don't have to pay anything. If the staff is working for a longer period (which includes the Dashain festival) you should pay on pro rate basis, based on the number of months. One more advice: make clear in the very beginning for how many days your didi will not work during the festival. I normally give three to four days off, including the Tika day, which is the most important."--Gerlinde

"Its expected but if you are only employing her for 3 months...you dont have to pay.  For my employees I say they have to work for 9 months before they get it.  its not a law - kind of like a christmas bonus, nice if you get it....."--Jackie.

"Legally, you are required to provide one month’s BASIC salary (minimum salary by law is 8000 per month, broken down to 5100 basic salary and 2900 dearness allowance) to permanent employees. Your didi is probably not a permanent staff in the legal sense of the word. However, it is common practice to tip household help, drivers, and similar staff members a token amount to help celebrate Dasain. How much you want to give is up to you. If you can afford it, the main thing is to keep staff happy keep with the spirit of the season. Personally, I’d suggest not haggling over a few thousand rupees. Is she a good Didi? A good Dasain bonus goes a long way if you’re staying a long time in Nepal.  Hope it helps!!"--Santosh.

"It is common in Nepal to pay Dashain festival bonus equal to 1 month's salary, like in most countries in the world, where they do not celebrate Dashain, but celebrate other major festival. I am not sure if it is in the Nepali labor law though, but I won't be surprised if it is.  But since you will have your didi working for you only for three months, you are not expected to pay her 1 month salary bonus, even though she may be expecting it from you. You could pro-rate based on the three months she will have worked. May be others will be able to advise better."--Ruba.

"It is not mandatory to give a Dashain Bonus unless people are permanently/officially employed.  If they are the bonus would only normally be paid if they have been working for 1 year or, at the descretion of the employer it would be paid on a prorata basis.  It is though customary to pay staff  Dashain bonus and if you value their service it is a nice gesture.  If they have only been working for a few months it is reasonable to pro-rate the amount based on the number of months and then round it up a little…I hope this helps.  The above is my personal advise based on living here for 20 years.  I am sure there are lots of different views.--Steve.

"Normally we pay bonus of 1 Month to our permanent staffs not to the temporary staffs...If you are hiring just for 3 months.. I do not think you need to pay bonus of 1 Month... Just tip her as a gift if required as per your wish...It cannot be demanded by Didi..... its your wish..."--Pawan.

"The requirement is 1 month salary for one whole year's of work.  If she is someone you want to retain for a long time, I would suggest paying her for one month plus a sari or money for a sari.  If she is only going to work for you a total of 3 months, then pay what you can afford.  Remember, Desain is a bonus, not a salary..."--Kelly.

" i think you have to pay dashain if your didi have worked for you more than one year.  Althoug some nepalese people will agree with her, you can let her go if she don't accept you pay her next year.  Not sure if even there is a written law about that, but at least she would have to be happy with a percentage of extra money and not demand you the full salary extra with just 3 months with you.  I have learn some lessons during the years here and i just tell when i contract "if you want the job, i just will pay you extra dashain salary after a year of work..."--Chirley

"I pro-rata the dashain bonus, depending on the months the person has been employed.   Just an opinion ..... if she has been working for you for 7 plus months, then perhaps a full month's bonus is OK..."--yumi.

"Yes this is a custom of paying a month's salary during dashain as festival allowance but there remain some conditions that needs to be fulfilled.  Some employers have rule of passing certain period to be eligible to get the allowance. for eg, we, at our office have rule that one should have completed 6 months of service to be eligible for that. The call is yours."--Sajjan.

On Wednesday, August 28, 2013 2:09:34 PM UTC+5:45, karen wrote:

[Roshan Karki]

I'm surprised that everyone is talking about only the legal aspect of this situation. If you can afford I request you to look at from a moral perspective as well. Dashain is the biggest festival here and for many of us the only time of the year where we get to eat good food and buy new clothes. The family that can't do either of this will go though immense mental torture. For children this will be worst as the whole point of Dashain is that one time opportunity to go shopping. 

[William Patrick Forbes]

Finally a voice of reason and compassion.� Merry Christmas, folks.� Do unto others as you would do unto yourself.� And how much money are we talking about? - Billy



On 8/30/13 9:14 AM, Roshan Karki wrote:

I'm surprised that everyone is talking about only the legal aspect of this situation. If you can afford I request you to look at from a moral perspective as well. Dashain is the biggest festival here and for many of us the only time of the year where we get to eat good food and buy new clothes. The family that can't do either of this will go though immense mental torture. For children this will be worst as the whole point of Dashain is that one time opportunity to go shopping.�

On Thursday, August 29, 2013 8:35:53 AM UTC+5:45, karen wrote:

Thanks to all the ktmktm group members who replied. �Below are some of the helpful advice I received. �Best, Karen.

"HA ha she is taking you for a ride, mostly bonus is not offered to employees for the first year ...� well dashin is just like xmas in west if you think you are happy with her you can give her something .. but it seems she is a smart ass ..."--Vinayak.

"paying a Dashain Bonus is not a law and not really a requirement for private employments. Staff is expecting that of course, especially if they work for foreigners. If a Didi or whoever, leaves before Dashain you don't have to pay anything. If the staff is working for a longer period (which includes the Dashain festival) you should pay on pro rate basis, based on the number of months. One more advice: make clear in the very beginning for how many days your didi will not work during the festival. I normally give three to four days off, including the Tika day, which is the most important."--Gerlinde

"Its expected but if you are only employing her for 3 months...you dont have to pay. �For my employees I say they have to work for 9 months before they get it. �its not a law - kind of like a christmas bonus, nice if you get it....."--Jackie.

"Legally, you are required to provide one month�s BASIC salary (minimum salary by law is 8000 per month, broken down to 5100 basic salary and 2900 dearness allowance) to permanent employees. Your didi is probably not a permanent staff in the legal sense of the word. However, it is common practice to tip household help, drivers, and similar staff members a token amount to help celebrate Dasain. How much you want to give is up to you. If you can afford it, the main thing is to keep staff happy keep with the spirit of the season. Personally, I�d suggest not haggling over a few thousand rupees. Is she a good Didi? A good Dasain bonus goes a long way if you�re staying a long time in Nepal. �Hope it helps!!"--Santosh.

"It is common in Nepal to pay�Dashain festival bonus equal to 1 month's salary, like in most countries in the world, where they do not celebrate Dashain, but�celebrate other major festival. I am not sure if it is in the Nepali labor law though, but I won't be surprised if it is. �But since you will have your didi working for you�only for three months, you are not expected to pay her 1 month salary bonus, even though she�may be�expecting it from you. You could pro-rate based on the three months she will have worked.�May be others will be able to advise better."--Ruba.

"It is not�mandatory�to give a Dashain Bonus unless people are permanently/officially employed. �If they are the bonus would only normally be paid if they have been working for 1 year or, at the descretion of the employer it would be paid on a prorata basis. �It is though�customary�to pay staff �Dashain bonus and if you value their service it is a nice gesture. �If they have only been working for a few months it is reasonable to pro-rate the amount based on the number of months and then round it up a little�I hope this helps. �The above is my personal advise based on living here for 20 years. �I am sure there are lots of different views.--Steve.

"Normally we pay bonus of 1 Month to our permanent staffs not to the temporary staffs...If you are hiring just for 3 months.. I do not think you need to pay bonus of 1 Month... Just tip her as a gift if required as per your wish...It cannot be demanded by Didi..... its your wish..."--Pawan.

"The requirement is 1 month salary for one whole year's of work.� If she is someone you want to retain for a long time, I would suggest paying her for one month plus a sari or money for a sari.� If she is only going to work for you a total of 3 months, then pay what you can afford. �Remember, Desain is a bonus, not a salary..."--Kelly.

"�i think you have to pay dashain if your didi have worked for you more than one year.��Althoug some nepalese people will agree with her, you can let her go if she don't accept you pay her next year. �Not sure if even there is a written law about that, but at least she would have to be happy with a percentage of extra money and not demand you the full salary extra with just 3 months with you. �I have learn some lessons during the years here and i just tell when i contract "if you want the job, i just will pay you extra dashain salary after a year of work..."--Chirley

"I pro-rata the dashain bonus, depending on the months the person has been employed.�� Just an opinion ..... if she has been working for you for�7 plus months, then perhaps a full month's bonus is OK..."--yumi.

"Yes this is a custom of paying a month's salary during dashain as festival allowance but there remain some conditions that needs to be fulfilled. �Some employers have rule of passing certain period to be eligible to get the allowance. for eg, we, at our office have rule that one should have completed 6 months of service to be eligible for that.�The call is yours."--Sajjan.

On Wednesday, August 28, 2013 2:09:34 PM UTC+5:45, karen wrote:

Dear ktmktm,

My Didi says I have to pay her Dashain Festival bonus equal to 1 month's salary. �Is this a requirement that employers pay their Nepali workers Dashain Festival Bonus equal to 1 month's salary? �If I'm only employing her for 3 months, am I still expected to pay her 1 month's salary bonus or should I pro-rate it based on number of months worked? �Please advise.

Thanks,

Karen.

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[Parveen Agrawal]

It is necessary to deduct 15 % tds on dashai allowance or what % we can ????????????