Kathmandu, May 28
Overtime allowances for employees working in banks and financial institutions have been formally ensured following directives from the Ministry of Labour, Employment and Social Security and subsequent amendments to regulations by the Nepal Rastra Bank.
The central bank amended the Unified Directives 2082 issued to Class ‘A’, ‘B’ and ‘C’ banks and financial institutions, ensuring employees receive additional compensation for overtime work. Nepal Rastra Bank has instructed banks to assign work to employees only in accordance with prevailing labour laws and central bank directives.
The revised provision requires institutions to provide additional remuneration for work performed beyond official office hours. Employees also cannot be forced to work beyond regular working hours.
The issue surfaced after the government decided to grant public holidays on Sundays as well, leading some banks to require staff to work beyond regular office hours without extra pay. Although banking hours are officially fixed from 9 am to 5 pm, employees were reportedly made to work until 5:30 pm or 6 pm without compensation.
Dissatisfied employees filed complaints with the Labour Department, which then coordinated with the ministry and urged Nepal Rastra Bank to regulate the matter. Based on the complaints, the central bank directed banks and financial institutions to provide overtime compensation for work exceeding regular office hours.
Trade unions had also appealed to the government to ensure labour rights for employees in the banking and financial sector. Labour Minister Ramji Yadav had instructed the Department of Labour and Occupational Safety to take necessary measures to protect workers’ rights.
Following the department’s recommendation on May 13, Nepal Rastra Bank amended the directives on May 22, introducing clear provisions regarding overtime work for employees of banks and financial institutions nationwide.
The Labour Department had also urged the central bank to ensure minimum wages, service benefits, and implementation of labour laws for workers, including security guards and outsourced employees.
The amendment is being viewed as a significant step toward enforcing labour laws in the banking sector. Thousands of employees who had long complained of working extended hours without proper compensation are expected to benefit.
Workers’ organisations, including outsourcing labour groups, had also complained that security guards, office assistants and frontline workers were often employed without proper appointments and denied minimum wages, festival allowances, and other labour rights guaranteed under the Labour Act. Complaints had also been lodged with the Prime Minister’s Office, Hello Sarkar, and the National Vigilance Centre regarding labour exploitation in the sector.
