Employer Cost Calculator Nepal: What One Employee Costs
Enter basic, allowances and SSF or PF to see the full monthly and yearly cost to company in Nepal: gross, the employer's fund share, gratuity and festival expense, with the employee's take-home beside it.
- No sign-up
- FY 2083/84 slabs
- Every line cites its section
What the employer adds to gross
- Employer SSF, on basic
- 20%
- Employer PF and gratuity, on basic
- 10% + 8.33%
- Of basic a year, as festival expense
- 1 month
- A month, at the minimum remuneration on SSF
- NPR 22,998
The cost of one employee
| Cost, per employee | A month | A year | Source |
|---|---|---|---|
| Gross salaryBasic plus allowances | NPR 50,000 | NPR 600,000 | Employment contract (Labour Act 2074, Section 11(3)) |
| Employer SSF, 20%20% of basic, paid on top of gross | NPR 6,000 | NPR 72,000 | Contribution Based Social Security Act 2074 |
| Gratuity, 8.33%Inside the employer's 20%, not added again | NPR 0 | NPR 0 | Social Security Scheme Operation Procedure 2075, Section 19(1) |
| Festival expenseOne month's basic a year, set aside monthly | NPR 2,500 | NPR 30,000 | Labour Act 2074, Section 37(1) |
| Cost to company | NPR 58,500 | NPR 702,000 | Sum of the lines above |
The working
- Gross: basic NPR 30,000 + allowances NPR 20,000 = NPR 50,000 a month.
- Employer SSF: 20% of basic NPR 30,000 = NPR 6,000 a month, paid on top of gross (Contribution Based Social Security Act 2074).
- Gratuity: no separate line. The employer's 20% already carries 10% for provident fund and 8.33% for gratuity (Social Security Scheme Operation Procedure 2075, Section 19(1)).
- Festival expense: one month's basic, NPR 30,000 a year, set aside as NPR 2,500 a month (Labour Act 2074, Section 37(1)).
- Cost to company a month: NPR 50,000 + NPR 6,000 + NPR 2,500 = NPR 58,500.
- Cost to company a year: 12 × NPR 56,000 + festival expense NPR 30,000 = NPR 702,000.
- Take-home: NPR 50,000 less employee SSF 11% NPR 3,300 and TDS NPR 0 = NPR 46,700 a month, on the FY 2083/84 slabs.
Not in the total: insurance premiums. Section 54 of the Labour Act 2074 requires medical insurance cover of at least NPR 100,000 a year for each employee, with the premium split half and half between employer and employee, and Section 55 requires accident insurance cover of at least NPR 700,000, with the premium paid by the employer. The Act fixes the cover, not the price, so add your insurer's quote.
An estimate for budgeting, not a payroll run. Rates are flat, with no SSF monthly ceiling. Take-home is a regular month: festival expense is taxed in the month it is paid, so that month's TDS is higher. The monthly festival figure is one twelfth rounded to the rupee, so twelve of them can differ from the yearly figure by a few rupees.
Optional: what running payroll by hand costs you
Type your own figures. Nothing is filled in for you, and nothing is subtracted: you see your figure and NepalHRM's price side by side.
The two figures are not like for like. Software still needs someone to review each run before it is paid, so compare them on your own terms.
Where these figures come from
- Labour Act 2074, Nepal Law Commission: Section 37 (festival expense), Section 52(1) (provident fund), Section 53(1) (gratuity), Sections 54 and 55 (medical and accident insurance). Read against that text on 6 August 2026.
- Contribution Based Social Security Act 2074 for the 11% employee and 20% employer SSF contribution, and the Social Security Scheme Operation Procedure 2075, Section 19(1), for the 10% provident fund and 8.33% gratuity inside the employer's 20%.
- Take-home uses the FY 2083/84 income tax slabs and the same arithmetic as the salary tax calculator.
- NepalHRM's price is read from the same price list as the pricing page.
What the total means, and why an offer letter should lead with gross: cost to company (CTC), defined. For SSF, PF and cost to company worked out on every payslip, see NepalHRM payroll.
Four Inputs, The Whole Cost Out
Every statutory cost in Nepal is charged on basic salary, not gross, so the split between basic and allowances decides most of the answer.
- 1
Split the salary into basic and allowances
Enter the basic the contract states, then the allowances on top. SSF, PF, gratuity and festival expense are all worked out on basic.
- 2
Choose SSF or PF
An employer listed with the Social Security Fund pays 20% of basic, with gratuity inside it. Outside SSF it is 10% provident fund plus 8.33% gratuity. CIT is the employee's own saving and changes take-home only.
- 3
Enter how many people are on this salary
The total multiplies by headcount, monthly and yearly, so a role with several hires is budgeted in one go.
- 4
Read the working, then add insurance
Each line of the result names the section it comes from. Insurance premiums are not in the total, because the Act fixes the cover rather than the price.
Last updated · Reviewed by Rajendra Regmi, Co-founder
What Goes Into Cost to Company
The first five rows make the total, with SSF and PF as alternatives. The two insurance rows are owed by law but priced by your insurer, so the calculator leaves them for you to add.
| Cost | How much | Where it comes from | In the total |
|---|---|---|---|
| Gross salary | Basic plus allowances, every month | The employment contract (Labour Act 2074, Section 11(3)) | Yes |
| Employer SSF | 20% of basic | Contribution Based Social Security Act 2074 | Yes, under SSF |
| Employer PF | 10% of basic | Labour Act 2074, Section 52(1) | Yes, under PF |
| Gratuity | 8.33% of basic a month | Labour Act 2074, Section 53(1). Under SSF it is inside the employer's share (Social Security Scheme Operation Procedure 2075, Section 19(1)) | Under PF only |
| Festival expense | One month's basic a year | Labour Act 2074, Section 37(1) | Yes, one twelfth a month |
| Medical insurance | Cover of at least NPR 100,000 a year, premium half and half | Labour Act 2074, Section 54 | No, add your quote |
| Accident insurance | Cover of at least NPR 700,000, premium paid by the employer | Labour Act 2074, Section 55 | No, add your quote |
Not in the total either: overtime at 1.5 times basic (Section 31(1)), the annual grade (Section 36), leave encashment at the last basic drawn (Section 49(2)) and the Bonus Act bonus in a profitable year. Each depends on hours, years or profit that a hiring estimate does not know.
For the definition, and why an offer letter should lead with gross rather than CTC: cost to company (CTC), defined
Three Salaries, Costed Line by Line
Generated by the same arithmetic as the calculator above, so you can check one against the other.
The minimum remuneration, on SSF
Basic NPR 12,170 and allowances NPR 7,380 make a gross of NPR 19,550. On top of it come employer SSF NPR 2,434 and festival expense NPR 1,014 a month, so one employee costs NPR 22,998 a month and NPR 275,978 a year. The employee takes home NPR 18,211 a month after SSF NPR 1,339 and TDS NPR 0.
NPR 50,000 gross, on PF with 10% CIT
Basic NPR 30,000 and allowances NPR 20,000 make a gross of NPR 50,000. On top of it come employer PF NPR 3,000, gratuity NPR 2,499 and festival expense NPR 2,500 a month, so one employee costs NPR 57,999 a month and NPR 695,988 a year. The employee takes home NPR 43,560 a month after PF NPR 3,000, CIT NPR 3,000 and TDS NPR 440.
NPR 150,000 gross, on SSF, ten people
Basic NPR 90,000 and allowances NPR 60,000 make a gross of NPR 150,000. On top of it come employer SSF NPR 18,000 and festival expense NPR 7,500 a month, so one employee costs NPR 175,500 a month and NPR 2,106,000 a year. For 10 people on this salary that is NPR 1,755,000 a month and NPR 21,060,000 a year. The employee takes home NPR 132,913 a month after SSF NPR 9,900 and TDS NPR 7,187.
Cost to Company on Every Payslip
This page costs one salary before you hire. NepalHRM runs the same contributions on every payroll and keeps the totals on record.
- SSF at 11% and 20% of basic is deducted and contributed on every payroll run.
- Each payslip shows the employee's contribution as a deduction and the employer's contribution separately.
- Cost to company, gross plus every employer contribution, is shown beside gross on the payslip and on the salary sheet.
- Payroll is on the Business and Enterprise plans.
The Cost of an Employee in Nepal, Answered
The salary plus what the law adds on basic. Under SSF the employer pays 20% of basic on top of gross. Outside SSF it is 10% provident fund (Labour Act 2074, Section 52(1)) plus 8.33% gratuity (Section 53(1)). Every employer also owes festival expense of one month's basic a year (Section 37(1)) and insurance premiums under Sections 54 and 55. At the minimum remuneration of NPR 19,550 a month on SSF, that is NPR 22,998 a month and NPR 275,978 a year before insurance.
The total cost of employing someone: gross salary, the employer's SSF or PF share, gratuity where it is separate, festival expense under Labour Act 2074 Section 37(1), and any benefit the employer funds. It is always more than gross, and more again than take-home pay.
No. Under the Social Security Scheme Operation Procedure 2075, Section 19(1), the employer's 20% already carries 10% for provident fund and 8.33% for gratuity. Outside SSF, gratuity is a separate 8.33% of basic every month under Labour Act 2074, Section 53(1).
Yes. Labour Act 2074 Section 37(1) owes one month's basic a year, paid at Dashain unless the employee asks for another festival (Section 37(2)), and pro-rated for anyone under a year of service (Section 37(3)). The calculator sets aside one twelfth of it each month. It is not the Bonus Act bonus, which comes out of profit.
No. The employer's 20% SSF, or 10% PF plus gratuity, is paid on top of gross. What leaves the employee's gross is their own 11% SSF or 10% PF (Labour Act 2074, Section 52(1)), any CIT they elect, and TDS on the FY 2083/84 slabs.
The take-home here is a regular month, worked on twelve equal months. Festival expense under Labour Act 2074 Section 37(1) is taxable income in the month it is paid, so that month's TDS is higher. It is not part of basic, so it adds nothing to SSF, PF or gratuity.
No. Labour Act 2074 Section 54 requires medical insurance cover of at least NPR 100,000 a year for each employee, premium split half and half, and Section 55 requires accident insurance cover of at least NPR 700,000, premium paid by the employer. The Act sets the cover, not the price, so add your insurer's quote.
Overtime at 1.5 times basic (Labour Act 2074, Section 31(1)), the annual grade of at least half a day's basic for each completed year (Section 36), leave encashment at the last basic drawn (Section 49(2)), and the Bonus Act bonus in a profitable year. Each depends on hours, years or profit that a hiring estimate does not know.
No. It applies a flat 11% and 20% of basic, so on a very high basic it reads higher than a real payroll run. NepalHRM payroll applies the monthly SSF contribution ceiling set in your payroll settings.
Payroll is on the Business and Enterprise plans. Business is priced per employee a month, and the second block of the calculator shows the monthly price for the headcount you enter, read from the same price list as the pricing page, before 13% VAT.
No. Only you know how many hours payroll takes you and what an hour of that time costs, so the second block starts empty, multiplies the two figures you type, and puts NepalHRM's price beside the result without subtracting one from the other.
Yes. Cost to company, gross earnings plus every employer contribution, is shown beside gross on the payslip and on the salary sheet. It is a display total and changes no tax or net figure.
Guides to what an employee costs
How a salary is structured, how PF, gratuity and SSF compare in cost, and what a raise costs once the contributions move with it.
- Salary Structure in Nepal: Basic, Allowance, In-HandWhy the basic figure decides almost everything on a Nepali payslip, what the 60% convention really is, and how gross becomes in-hand pay. With worked numbers.
- CIT vs PF vs SSF: Which Saves You More TaxPF, CIT and SSF all reduce taxable income, but only to a point. What each one costs, what the NPR 500,000 ceiling does, and which combination actually leaves more.
- Gratuity in Nepal: Who Qualifies and How Much Is PaidGratuity in Nepal is 8.33% of basic salary deposited every month from day one, not a lump sum computed at exit. What the 2074 Act changed, and why it matters.
- Salary Increment in Nepal: How to Run an Annual RevisionSection 36 gives every worker with a year of service an annual grade of at least half a day's basic. Here is the floor, the real cost, and the run order.
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Run the Real Cost on Every Payslip
NepalHRM calculates SSF or PF on every payroll run and shows cost to company beside gross, so the budget you set here is one you can check each month.
- SSF and PF on every run
- CTC beside gross on the payslip
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