Press Release

FIEUN’s Disagreement and Action for the Proposed Amendment in Bonus Act 2030 of Nepal

A new legislative law was presented in the parliament on amendment of bonus act by the new government of Nepal in which bonus was cut off from 10% to 5% for private enterprises and from 10% to 1% for public sector enterprises. And the remaining whole profit amount needs be deposited in National social security fund of government which has been proposed for revision from current act, which requires 70% to be deposited in organizations employee welfare fund and 30% in national social security fund. This was totally a malafide intention of the new anti-democratic government to victimize the workers. Therefore, FIEUN performed a brave role to accuse this new proposal of legislation for revised bonus act by publishing a press release report in this issue and lobbying with the government to take back this newly proposed legislature of Bonus Act from parliament.

 The following statement was issued to the press on date 1st of January 2019, by Financial Institute Employees Union Nepal (FIEUN), in response to the proposed amendments in Bonus Act 2030 in the parliament cabinet for decision by Government of Nepal.

“FIEUN as being one of the national level union of Nepal is able to accommodate all finance sector organizations including banking, microfinance, insurance and security board employees all over Nepal. It is affiliated to Nepal Trade Union Congress (NTUC) at national level and to Union Network International (UNI) at international level. It has 47 affiliates with more than 16,550 members altogether throughout the country.

FIEUN seriously accuses the legislative document registered on date 24th of December 2018, by the government of Nepal in the parliament to revise the existing bonus act 2030 of Nepal. According to ILO convention, any amendments which has to be proposed in the parliament must be in line with the agreement from tripartite government, employers association and trade unions together. But such amendment in bonus act has been proposed by violating the existing rules and which is totally against the welfare of the workers. Such amendment in bonus act will cut off the rights of the workers and additionally, will lead to poor economic condition, development of industrial conflict and at the same time will lead to poor productivity of whole service industries of Nepal. All this incidents will ultimately embrace overall serious economic situation in Nepal. Therefore, FIEUN request all the concerned enterprise level trade unions and other concerned authorities for the solidarity support from their part and pay serious concern for such disingenuous  activity of bonus act amendment.

According to current bonus act 2030, out of total profit, 10 % profit amount has to be distributed to the employees as bonus and the remaining 30% to be deposited to national social security fund and remaining 70% to be deposited to organizations employee welfare fund and utilize such fund for employees’ social activities, but according to the decisions from council of ministers, it is noticed that 100% of profit amount needs to be deposited to national social security fund. Therefore, such legislative document which has been registered in the federal parliament has demoralize the workers motivation and at the same time, tried to clutch the right of workers. Thus, FIEUN has serious allegations against such activity and request the government to instantly take back such amendment proposal and only put forward any legislations after the discussions with all the concerned authorities. Else, this union and its affiliated unions will be pressurized to take further steps for confrontations and strike. And the Nepal government will be self-responsible for any kind of wearying situation that can arise in the whole finance sector of Nepal”.

A delegation of representatives of FIEUN submitted the press release to the Ministry of Finance and Nepal Rastra Bank (A Regulator Bank of Nepal). Federation of Nepalese Chambers of Commerce and Industry (FNCCI) which is the nationally and internationally recognized umbrella organization of business in Nepal also morally supported this initiation taken from FIEUN. There was an invisible support from other political trade unions for this activity of FIEUN. As a result of this initiation taken by FIEUN currently the proposed revision of this bonus act has been taken back from government of Nepal.