Employment Cost Calculator for Nepal
Calculate your complete hiring costs for Nepal employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Income Tax (PAYE) | Progressive (1%-36%) | Employee's Gross Salary (with allowances and benefits) |
| Social Security Fund (SSF) | 20% (Employer) | Employee's Basic Salary |
| Provident Fund (PF) | 10% (Employer) | Employee's Basic Salary |
| Gratuity | 8.33% | Employee's Basic Salary |
Filing & Compliance
- Monthly Deposits: Income Tax (TDS) and SSF contributions must be deposited by the 25th day of the following month. SSF contributions must be deposited within 15 days of the end of each month.
- Quarterly Statements: Quarterly TDS statements are typically due mid-October.
- Annual Returns: Annual income tax returns (often Form 10 or 03 for companies) are due by the end of Ashwin (typically mid-October) following the end of the fiscal year.
Income Tax Brackets
| Income Range (NPR) | Tax Rate (Single) | Tax Rate (Couple) |
|---|---|---|
| Up to 500,000 | 1% | 1% |
| Next 200,000 | 10% | 10% |
| Next 300,000 | 20% | 20% |
| Next 1,000,000 | 30% | 30% |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Provident Fund (PF) & Social Security Fund (SSF) | 1/3rd of taxable income or actual contribution | NPR 500,000 |
| Life Insurance Premiums | Actual premium paid | NPR 40,000 |
| Health Insurance Premiums | Actual premium paid | NPR 20,000 |
Personal Allowances
- Remote Area Allowance: Up to NPR 50,000 depending on location.
- Pension Income: Additional deduction of 25% of the first tax slab or actual pension, whichever is lower.
- Female Tax Credit: 10% rebate on tax liability for women with only remuneration income, if not opting for couple status.
