Nepal salary
and TDS calculator
Work out monthly take-home pay on the current tax slabs — including the SSF exemption that most payroll systems miss.
Your salary structure
Contributions are calculated on basic salary, so the split between basic and allowances changes the answer.
Anything paid monthly outside basic — taxable, but contributions do not run on it.
Registered with the Social Security Fund — 11% withheld from the employee, 20% paid by the employer. Mandatory at ten or more employees.
Dashain bonus and any other one-off annual pay. Commonly one month's basic salary.
Approved life insurance. Deductible up to NPR 40,000 a year.
- Gross pay
- NPR 60,000
- SSF contribution (11% of basic)
- − NPR 4,950
- Income tax withheld (TDS)
- − NPR 0
- Net pay
- NPR 55,050
The SSF exemption is worth NPR 6,606 a year here
The 1% on the first NPR 10,00,000 is social security tax, and it is not levied on SSF contributors. Payroll that applies the slab table without checking SSF status withholds NPR 551 too much from this employee every month — small enough that nobody queries it.
How the annual tax is reached
- Gross pay for the year
- NPR 7,20,000
- Employer's retirement contributionPart of assessable income, then claimed back below.
- + NPR 1,08,000
- Assessable income
- NPR 8,28,000
- Retirement contribution deductionLowest of the actual contribution, NPR 5,00,000, or a third of assessable income.
- − NPR 1,67,400
- Taxable income
- NPR 6,60,600
| Band | Income in band | Rate | Tax |
|---|---|---|---|
| Up to NPR 10,00,000SSF exempt | NPR 6,60,600 | 0% | NPR 0 |
| Annual tax(0.0% of gross pay) | NPR 0 | ||
What this employee costs the organization
The employer side never appears on the payslip and is never deducted from net pay — it sits on top of gross.
- Gross pay for the year
- NPR 7,20,000
- Employer SSF contribution (20% of basic)
- + NPR 1,08,000
- Total annual cost
- NPR 8,28,000
An estimate for a full twelve-month year on a single employer, using the FY 2083/84 rates. It does not model mid-year joiners, multiple employers, medical tax credit, or remote-area allowances. Confirm against the Inland Revenue Department before you rely on it.
One table now,
for every taxpayer
The Finance Act 2083 merged the single and married schedules, widened the first band to NPR 10 lakh and cut the top rate from 39% to 29%.
| Annual taxable income | Rate |
|---|---|
| Up to NPR 10,00,000Social security tax — not levied on SSF contributors | 1% |
| NPR 10,00,001 – NPR 15,00,000 | 10% |
| NPR 15,00,001 – NPR 25,00,000 | 20% |
| NPR 25,00,001 – NPR 40,00,000 | 27% |
| Above NPR 40,00,000 | 29% |
Figures reflect the Finance Act 2083. Rates move with each year's Finance Act — confirm against the Inland Revenue Department and the Social Security Fund before running payroll against them. This is an explanation, not tax advice.
Four rules that are
quietly easy to get wrong
Each of these produces an error small enough that nobody queries it, repeated every month across a whole workforce.
The base is basic, not gross
SSF and provident fund contributions run on basic salary. Allowances sitting outside basic are taxable but not contributory, so how a package is split materially changes both the deduction and the tax.
There is a contribution ceiling
SSF contributions stop scaling above NPR 3,50,000 of monthly salary. A system applying a flat percentage with no cap over-deducts from senior staff every month.
The fiscal year starts in Shrawan
Nepal's tax year runs on the Bikram Sambat calendar, not the Gregorian one. A payroll system that thinks in calendar months computes periods the Inland Revenue Department does not recognise.
Gratuity depends on the regime
Inside the SSF, gratuity is already folded into the employer's 20% — 8.33% of it. Configuring gratuity as an extra accrual for an SSF-registered employer double-counts it.
The longer version is in what Nepali payroll compliance actually involves
What people ask
about Nepali payslips
Payroll that already knows these rules
Ace HR keeps tax bands and salary components as configuration you control, so a Finance Act published in Jestha is an admin task before Shrawan rather than a wait for a vendor release.
Self-hosted, one-time licence, unlimited employees.