Employers Directed to Pay Mandatory Festival Allowance to Workers

The Department of Labour and Occupational Safety has issued a directive instructing all employers and business establishments to distribute the legally mandated festival allowance to their staff. This order comes as major cultural celebrations approach, reminding employers of their statutory obligations toward their workforce. According to the authorities, this payment is a statutory right under Section 37 of the Labour Act, 2017. The legislation dictates that every employee must receive an annual sum equivalent to one month of their basic salary. This allowance is intended to support workers during festivals celebrated in accordance with their specific religion, culture, and tradition. The department has established clear pathways for workers whose employers fail to provide this mandatory payment. Affected individuals can lodge formal complaints or applications directly with the Labour and Employment Office in their local area, or submit them directly to the Department of Labour and Occupational Safety. To simplify the process, officials have introduced a QR code for filing grievances, and complaints can also be sent via email to info@dolos.gov.np.