Free tool
Dashain allowance calculator
How much festival allowance an employee gets, and how much extra salary tax comes off it the month you pay it.
Festival allowance
NPR 50,000
An estimate with FY 2083/84 tax slabs, 11% + 20% SSF and no CIT. Your accountant has the final word.
Questions
Who gets a festival allowance?
Under Nepal's Labour Act 2074, every worker gets festival expenses equal to one month's basic remuneration once a year. Someone who has worked less than a year gets a share for the months worked.
When is it paid?
Before the worker's main festival. For most companies in Nepal that's Dashain.
Is it taxed?
Yes. It's part of the employee's income, so salary tax (TDS) is worked out on it in the month it's paid. Because it adds to the year's income, it's taxed at the employee's top rate.
Is SSF taken from it?
SSF contributions are worked out on basic salary, so the festival allowance itself has no SSF deduction.
Can WorkforceOS pay it for me?
Yes. Add it as a bonus in that month's payroll. WorkforceOS works out the tax on it and it shows on the payslip and in the tax and SSF report.
Free for 30 days
Pay festival allowance with payroll
WorkforceOS works out the tax on it and sends the payslips. Free for 30 days.