Excess accrued leave is paid out at year-end

Published On: October 19, 2023 11:15 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 18: It is the inherent right of employees working in any office or establishment to receive leave. Vacation benefits extend beyond just single individuals. The rejuvenation that follows returning to work after a vacation also positively impacts the office or establishment.

Some offices or establishments hesitate to grant leave to their employees. Are you aware of the provisions in Nepal's labor laws concerning leave? Do you know the number of days an employee or laborer is entitled to such leave in a year? And, what happens if the accrued leave goes unused? The Labor Act of 2074 and the relevant office's labor regulations address these leave-related matters.

According to the Labor Act of 2074, employees are entitled to various types of leaves, including home leave and sick leave. Each worker is guaranteed a minimum of 18 days of home leave and 12 days of sick leave annually. Any unused leave accumulates, up to 90 days for home leave and 45 days for sick leave, and workers receive cash compensation for this accumulated leave.

However, employees are only paid for accumulated home leave and sick leave when they leave their job. The payment is calculated based on the worker's basic wages at the time of their departure from the office.

If, after 90 days of home leave and 45 days of sick leave have been accrued, the employee's leave remains unused, the excess accrued leave payment can only be received at the end of the same year. Payment for such over-accumulated leave is calculated at the worker's prevailing basic pay rate at the year-end when it is to be disbursed.


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