Section 7: Amount to be Obtained for Bonus and Its Assessment

1) The management shall assess the percentage of bonus amount to be obtained by any employee in a fiscal year pursuant to sub-section (2).

2) While computing bonus amount to be received by the employee pursuant to sub-section (1), the amount so separated for the distribution of bonus by the enterprise for the particular fiscal year shall be multiplied by a sum of One Hundred and the amount so deducted shall be divided by the pay or wage amount of the employee so entitled to receive the bonus and the amount so deducted shall be the percentage of the bonus amount.

3) Notwithstanding anything contained in sub-section (2), the bonus to be received by an employee shall not exceed the following amount:

(a) An employee receiving a monthly salary or wage up to twice the minimum wage prescribed by the Government of Nepal, an amount equivalent to his eight months’ salary or wage,

(b) An employee receiving a salary or wage in excess of clause (a), an amount equivalent to his six months’ salary or wage.

4) The minimum bonus amount to be obtained under clause (b) of sub-section (3) shall not be less than the maximum bonus amounts pursuant to clause (a).