Dashain on a Budget: What Workers and Travellers in Nepal Are Entitled To This Festive Season

Nepal's labour authorities have reminded employers of a legal duty to pay a festival allowance, and domestic airlines have agreed to sell some tickets below approved fares. With families still recovering from August's flood, the measures matter for those travelling home or supporting relatives.

Nepal's Department of Labour and Occupational Safety has told employers that workers are entitled to a festival allowance equal to one month's basic pay, under Section 37 of the Labor Act, Ratopati English reported on 8 October. The same week, the Civil Aviation Authority of Nepal (CAAN) said domestic airlines would sell tickets below approved fares, following complaints about price rises ahead of the festive season.

The allowance According to Ratopati, the directive applies to all employers and establishments, covering festivals celebrated under prevailing religion, culture and tradition. Workers who are not paid can complain to the relevant Labour and Employment Office or the Department. Ratopati's English text states it was machine-translated, so exact wording should be checked against the Act itself. NepalUK has not independently confirmed how the "basic salary" is defined for different sectors, nor how often the entitlement is enforced; the directive is a reminder, not new law.

The airfares Sharesansar reported on 8 October that CAAN held talks with airline representatives on Wednesday 7 October, after Prime Minister Balendra Shah expressed concern about fares. The outcome: airlines will sell tickets below the approved fares and publish the reduced rates on their own platforms. The report names no carriers, gives no discount percentage, and sets no end date or eligible routes. Travellers should therefore check each airline's own booking page rather than assume a specific reduction.

Unconfirmed local measures Nepal News's 8 October evening briefing also reports that Kathmandu Valley consumers will be able to swap LPG cylinders across brands without the previously reported fee of up to Rs 300, with exchange locations undecided. NepalUK found this in one secondary source only and has not verified it with the regulator.

The wider backdrop These steps come as NRB data show inflation at 5.96 per cent and after the 26 August flood damaged roads and bridges (see Briefing 1). The same Nepal News briefing reports restricted overland trade with China, with freight costs for stuck cargo reportedly rising sharply. That claim is also single-source, and the briefing itself carries a puzzling repeated boilerplate line about border closures that NepalUK could not corroborate; it is not relied on here.

What it means for the diaspora Relatives employed in Nepal's formal sector may be owed an allowance; knowing the entitlement helps them raise it. For those planning to fly domestically, comparing fares directly with carriers is wise. Those sending money for Dashain should note that flood-affected districts may face higher costs than those quoted nationally.