Government Directs Employers to Provide Mandatory Festival Allowance to Workers

The government has directed all employers and industrial and commercial establishments to ensure that workers receive their mandatory festival allowance in accordance with the Labour Act, 2017. Issuing a public notice, the Department of Labour and Occupational Safety reminded employers that withholding the festival allowance would violate existing labour provisions. The department urged all employers to fully comply with the law and ensure that no worker is deprived of the benefit. According to Section 37 of the Labour Act, 2017, every worker is entitled to an annual festival allowance equivalent to one month’s basic salary, payable for festivals observed in accordance with their religion, culture and traditions. The department has also clarified that workers who are denied the allowance can seek legal remedies by filing complaints with the relevant authorities. Workers who do not receive their festival allowance may submit complaints or applications to the Labour and Employment Office responsible for the area where their workplace is located. They can also approach the Department of Labour and Occupational Safety directly, according to a notice issued by the department’s Deputy Director General, Bipin Rajbhandari. To make the complaint process more accessible, the department has also made a QR code available for submitting grievances. Workers can additionally register their complaints through the department’s official website, www.dolos.gov.np, or via email at info@dolos.gov.np. The department has urged workers to report cases of non-compliance and called on employers to fulfil their legal obligations by providing the festival allowance without discrimination or unnecessary delay.