KATHMANDU, Jan 4: Nepal Oil Corporation (NOC) is preparing to distribute a bonus amount of around Rs 60 million to its employees. The corporation has stated that it has started allocating a bonus amount of Rs 58.5 million for the last two fiscal years even though it has been allocating the amount for years. As per the provision in the Bonus Act, 2074 (Fifth Amendment), one percent of the corporation’s net profit is going to be distributed as bonus.
Each employee of NOC will get a minimum of Rs 30,000 to a maximum of Rs 60,000 as bonus in a fiscal year. As the corporation is a state-owned entity, the employees of the corporation will get less amount as the Bonus Act has restricted the distribution of bonus to only one percent of the profit.
Managing director of NOC, Surendra Paudel, said that the bonus will be distributed as per the provisions of the Bonus Act. “One percent of the net profit has been set aside for bonus,” he said. “We are also thinking of distributing incentives to employees as per the rules.” He said, although the allocated amount under the topic is huge, employees get a minimum portion as bonus.
The remaining amount after distributing bonus, 80 percent is deposited in the National Level Employees Welfare Fund and the remaining 20 percent in the Employees Welfare Fund of the Corporation. According to the Bonus Act, at the rate of one percent of net profit, a total of Rs 164.7 million; Rs 48 million in the FY 2017/18, Rs 116.7 million in 2018/19 was allocated.
Even though the corporation has allocated Rs 3.29 billion under the bonus topic, the Bonus Act, 2074 has limited the amount for employees. The corporation had been allocating money in the form of bonus since it started making profit in FY 2014/15. The corporation has not taken the process forward as the employees of the corporation have filed a case in the court regarding the dispute before the bonus act was introduced.
Prior to the Bonus Act, 2074 BS, six percent of the net profit would be allocated as bonus for the employees. After the issuance of the Bonus Act, the monopoly establishment owned by the government can allocate only one percent of its net profit as bonus in a fiscal year. According to the corporation, it has started the bonus distribution process as per the same arrangement.
The remaining bonus amount after the distribution will be provided to the employees who have worked for at least 180 days in the organization, as per the Bonus Act. The corporation has earned a profit of Rs 12.87 billion in the fiscal year 2019/20. From which, one percent of the profit has been allocated for bonus to the employees.