Gross Salaryकुल तलब
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.
Also called: gross pay, total salary, kul talab
What gross includes
- Basic salary.
- All allowances: dearness, transport, communication, and any other regular payment.
- Overtime earned in the period.
- Taxable benefits provided in cash.
The three numbers people confuse
Basic is the contribution base. Gross is total earnings. Net is what reaches the bank after deductions. An offer letter that quotes only one of the three leaves the employee to guess the other two, and the guess is usually wrong by a wide margin.
The gap between gross and net in Nepal is driven mostly by three deductions: the employee's retirement contribution (10% for PF, 11% for SSF), any voluntary CIT election, and monthly TDS.
Gross is not employer cost
Employer cost sits above gross, not at it. The employer's own contribution share never appears in the employee's gross, so a company budgeting headcount from gross figures alone will understate the real cost by a material margin.
Gross Salary, answered
Gross is total earnings before deductions. Net is what reaches the employee's bank account after the retirement contribution, any CIT election and TDS have been taken out.
No. Cost to company adds the employer's own contributions on top of gross, so it is always the larger figure.
Yes. Gross includes basic plus every allowance, overtime and taxable cash benefit for the period.
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.
Put it into practice
Related terms
- Basic Salaryआधारभूत तलबBasic salary is the fixed core of an employee's pay, before allowances, overtime and bonuses. In Nepal it is also the base every statutory contribution is assessed on, which makes it the most consequential number in a salary structure.
- Net Payखुद तलबNet pay is the amount that actually reaches an employee's bank account: gross salary minus the retirement contribution, any voluntary CIT election, monthly TDS, and any other authorised deduction such as a salary advance.
- Allowanceभत्ताAn 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.
- Cost to Company (CTC)Cost to company is the total annual cost of employing someone: gross salary plus the employer's own statutory contributions, festival expense, and any benefit the company funds. It is always higher than gross, and higher again than net pay.
- TDS (Tax Deducted at Source)स्रोतमा कर कट्टीTDS is income tax withheld by the employer from an employee's salary each month and deposited with the Inland Revenue Department on the employee's behalf. It is calculated on annual projected income and spread across the year, not charged month by month in isolation.
- Annual BonusबोनसThe annual bonus is a share of an enterprise's net profit distributed to its employees under the Bonus Act 2030. Ten percent of net profit is set aside for the purpose, and what remains after distribution goes to welfare funds.
- 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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