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Nepal Gratuity Calculator

Estimate your gratuity in Nepal from your joining date, last working day and basic salary. It adds up 8.33% of basic salary month by month, so salary changes are counted correctly.

Use today to see what you have built up so far.

Basic only. Leave out allowances and bonuses.

Enter your joining date, last working day and basic salary to estimate your gratuity.

Under Section 53 of the Labour Act 2074, the employer sets aside 8.33% of each worker’s basic salary every month for gratuity. That works out to about one month’s basic salary for every year of service. This calculator adds it up month by month, so salary changes are counted at the salary you actually earned.

If your employer pays gratuity directly, the amount and timing can depend on your contract and company policy. If you moved into SSF, gratuity before that date is settled separately.

This is an estimate, not legal or tax advice. Lump-sum retirement payments can have tax rules of their own, so ask your HR team or the Inland Revenue Department.

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Gratuity in Nepal: How It Is Calculated

Under Section 53 of the Labour Act 2074, your employer sets aside 8.33% of your basic salary every month for gratuity. Over a year that comes to about one month of basic salary. This calculator adds it up for your whole service, including any change in salary.

The formula

Gratuity = 8.33% × basic salary × months of service. For example, a basic salary of NPR 50,000 for five years is 60 months, so 8.33% × 50,000 × 60 = NPR 2,49,900, which is about five months of salary.

Salary changes

If your basic salary rose over the years, add each change. Each period is counted at the salary you were paid then, which matches how the amount builds up month by month. A quick check using your latest basic salary times completed years is shown beside it.

SSF and gratuity

If your employer is part of the Social Security Fund, the gratuity share is paid into your SSF account every month. You shouldn’t also receive a separate gratuity for the same period. Gratuity from before you joined SSF is settled separately.

Before you rely on the number

  • Gratuity is usually paid only after at least one full year of continuous service. Check your contract.
  • Use basic salary only, not allowances or bonuses.
  • Tax and payout rules for lump-sum retirement payments can change, so ask your HR team or the Inland Revenue Department.

Frequently asked questions

How is gratuity calculated in Nepal?

Under Section 53 of the Labour Act 2074, 8.33% of basic salary is set aside every month. Gratuity = 8.33% × basic salary × months of service, which is roughly one month of basic salary for each year worked.

How much gratuity will I get after 5 years?

With a basic salary of NPR 50,000 for 5 years, it is about NPR 2,49,900 (60 months × 8.33% × 50,000), which is roughly five months of basic salary.

Is gratuity based on basic salary or total salary?

Basic salary only. Allowances and bonuses are not included.

Do I get gratuity if I am in SSF?

Gratuity is paid into your SSF account each month, so you should not get a separate gratuity for the same period. Gratuity from before you joined SSF is settled separately.

How many years of service are needed for gratuity?

Gratuity is generally paid after at least one full year of continuous service. Check your employment contract and company policy for the exact condition.

Is gratuity taxable in Nepal?

Lump-sum retirement payments can have their own tax treatment. Ask your HR team or the Inland Revenue Department about your case.