Nepal Salary Calculator — Net Pay After Tax
Calculate your take-home salary after income tax, provident fund, SSF, and insurance deductions for FY 2082/83.
How Net Salary is Calculated in Nepal
Your net salary (take-home pay) in Nepal is calculated by subtracting mandatory deductions from your gross salary. The main deductions include:
- Provident Fund (PF): Typically 10% of basic salary, contributed by both employee and employer. Your PF contribution is tax-deductible.
- Social Security Fund (SSF): 1% employee contribution (2% employer). Covers medical, accident, and retirement benefits.
- Income Tax: Calculated on taxable income (gross minus PF and insurance) using progressive tax slabs. Your employer deducts monthly TDS.
- Insurance: Life insurance premiums up to Rs 40,000/year are tax-deductible.
Nepal Salary Deduction Structure
| Deduction | Rate | Notes |
|---|---|---|
| Provident Fund | 10% | Employee share; employer matches |
| SSF (Employee) | 1% | Social Security Fund contribution |
| SSF (Employer) | 2% | Paid by employer, not deducted from salary |
| Income Tax | 1-36% | Progressive slab rates on taxable income |
| Insurance | Varies | Deductible up to Rs 40,000/year |
Understanding Your Nepal Salary Slip
A typical salary slip in Nepal contains several components that determine your final take-home pay. The gross salary or basic salary is the starting figure before any deductions. On top of basic salary, many employers add allowances such as dearness allowance, transport allowance, and housing allowance, though these are fully taxable. Mandatory deductions include your Provident Fund (PF) contribution, Social Security Fund (SSF) contribution, and income tax deducted at source (TDS). Some employers also deduct life or medical insurance premiums directly from salary. The net salary – also called take-home pay – is what remains after all deductions. Understanding each line item on your salary slip helps you verify that deductions are correct and plan your personal finances more effectively.
How Provident Fund and SSF Work in Nepal
The Provident Fund (PF) in Nepal requires both the employee and employer to contribute 10% each of the basic salary. The employee's 10% contribution is deducted from the monthly salary, while the employer's matching 10% is an additional benefit. PF contributions are tax-deductible, meaning they reduce your taxable income. The accumulated PF balance earns interest and can be withdrawn upon retirement, resignation, or in special circumstances such as home purchase or medical emergencies. The Social Security Fund (SSF) is a separate contribution where the employee pays 1% and the employer pays 2% of the basic salary. SSF provides a broader safety net covering health insurance, maternity benefits, accident coverage, disability protection, and old-age pension. Together, PF and SSF form the core of Nepal's employee welfare system and significantly impact your monthly take-home salary.