Dearness Allowance महँगी भत्ता
Dearness allowance लाई नेपालीमा महँगी भत्ता (mahangi bhatta) भनिन्छ। यो बढ्दो महँगीको भार कम गर्न आधारभूत तलबका अतिरिक्त दिइने भत्ता हो। Dearness allowance is a cost-of-living payment made on top of basic salary. Nepal's minimum wage is published as NPR 12,170 basic plus NPR 7,380 dearness allowance a month, and the allowance is taxed but kept out of PF, SSF and gratuity.
Also called: DA, mahangi bhatta, cost of living allowance
Key facts
- In the minimum wage
- NPR 7,380A month, on top of NPR 12,170 basic.
- Taxable
- YesIt is part of gross salary.
- PF, SSF and gratuity
- Not assessed on itThey are worked on basic only.
- Overtime rate
- Not includedSection 31 uses basic remuneration.
- Fixed under
- Labour Act 2074, s.106Gazette notice 2082/04/05 BS, effective Shrawan 1, 2082.
Why the minimum wage names it separately
The notice that fixes Nepal's minimum wage does not publish one number. It publishes NPR 12,170 of basic remuneration and NPR 7,380 of dearness allowance, NPR 19,550 in all, and the split decides what every statutory line is worked on.
A payroll that books the whole amount as basic over-contributes to PF or SSF and inflates gratuity and the overtime rate. One that pays the basic figure alone pays less than the minimum, because the floor is the total of both parts.
In a private company
Above the minimum, the share of a salary paid as dearness allowance is set by the company's salary structure and stated in the offer letter. Whatever the share, a fixed monthly sum called महँगी भत्ता is taxed with the rest of gross pay and stays out of the contribution base.
महँगी भत्ता kept separate, or folded into basic
Two payslips for the same रु. 19,550 a month at the minimum wage, and the employee's SSF deduction on each.
- Kept separate: आधारभूत तलब
- रु. 12,170
- Kept separate: महँगी भत्ता
- रु. 7,380
- Kept separate: SSF कट्टी (11% of basic)
- रु. 1,339
- Folded in: आधारभूत तलब
- रु. 19,550
- Folded in: SSF कट्टी (11% of basic)
- रु. 2,151
Same pay, रु. 812 a month more deducted. The employer's share, gratuity and the overtime rate rise with it, because each is worked on basic.
Dearness Allowance, answered
महँगी भत्ता (mahangi bhatta). महँगी means high or rising prices and भत्ता means allowance, so the name says what the payment is for.
Yes. It is part of gross salary and is taxed with the rest of it through monthly TDS.
No. PF, SSF and gratuity are assessed on basic salary only, and so is the overtime rate. Dearness allowance raises gross pay and taxable income, not the contribution base.
NPR 7,380 a month, on top of NPR 12,170 basic remuneration, for a total of NPR 19,550. It was fixed under section 106 of the Labour Act 2074 by the notice published in the Nepal Gazette on 2082/04/05 BS, effective from Shrawan 1, 2082.
- Labour Act 2074 section 106, and the minimum remuneration rate schedule published in the Nepal Gazette on 2082/04/05 BS, effective Shrawan 1, 2082. Read from the Department of Labour and Occupational Safety notice at dol.gov.np/site/notice/112.
- Labour Act 2074 section 31: overtime is paid at one and a half times basic remuneration.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Related terms
- Allowanceभत्ताAllowance लाई नेपालीमा भत्ता (bhatta) भनिन्छ। यो आधारभूत तलबका अतिरिक्त कुनै खास प्रयोजनका लागि नियमित रूपमा दिइने रकम हो, जस्तै महँगी भत्ता, यातायात भत्ता वा सञ्चार भत्ता। An allowance is a regular payment made on top of basic salary for a specific purpose, such as dearness, transport or communication. Allowances count as taxable earnings but are excluded from the base used for PF, SSF, gratuity and overtime.
- Basic Salaryआधारभूत तलबBasic salary लाई नेपालीमा आधारभूत तलब (adharbhut talab) भनिन्छ, र नेपालमा यसको न्यूनतम रकम मासिक रु. 12,170 हो। The minimum basic salary in Nepal is NPR 12,170 a month, part of the NPR 19,550 minimum wage fixed under section 106 of the Labour Act 2074 (Nepal Gazette, 2082/04/05 BS, effective Shrawan 1, 2082). Basic salary is the fixed core of an employee's pay, before allowances, overtime and bonuses, and it is the base every statutory contribution is assessed on.
- Minimum Wageन्यूनतम पारिश्रमिकMinimum wage लाई नेपालीमा न्यूनतम पारिश्रमिक (nyunatam parishramik) भनिन्छ। नेपालमा अहिले यो मासिक रु. 19,550 छ, जसमा आधारभूत पारिश्रमिक रु. 12,170 र महँगी भत्ता रु. 7,380 पर्छन्। The minimum wage is the lowest remuneration an employer in Nepal may lawfully pay. The rate in force is NPR 19,550 a month, made up of NPR 12,170 basic remuneration plus NPR 7,380 dearness allowance, or NPR 754 a day and NPR 101 an hour. It was fixed by the Government of Nepal under section 106 of the Labour Act 2074, published in the Nepal Gazette on 2082/04/05 BS and effective from Shrawan 1, 2082.
- Gross Salaryकुल तलबGross salary लाई नेपालीमा कुल तलब (kul talab) भनिन्छ। यो कुनै पनि कट्टी गर्नुअघिको आधारभूत तलब, सबै भत्ता र ओभरटाइमको जम्मा रकम हो। Gross salary is an employee's total earnings for a period before any deduction: basic salary plus every allowance, overtime and taxable benefit. It is the figure most offer letters quote and the one employees compare against.
- Payslipतलब पर्चीA payslip is the statement an employer issues each pay period showing earnings, deductions and net pay. In Nepal it is the employee's proof of income and of the tax and contributions withheld on their behalf.
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