Gratuity Calculator Nepal
Work out your gratuity (upadan) and the tax on it, for private jobs under the Labour Act 2074 or the civil service.
Uses your current basic salary for the whole period. If your basic changed over the years, the real amount is the 8.33% of each month's basic added up.
The rules in brief
Private sector (Labour Act 2074, section 53): 8.33% of basic salary every month, from day one, deposited in the SSF or a prescribed fund. If it can't be deposited, the employer must pay the 8.33% with your salary instead.
Civil service (appointed before Shrawan 2076, Civil Service Act 2049, section 36): with at least 5 years' service but short of pension, half a month's last salary per year for 5–10 years, one month's for over 10 up to 15 years, and 1.5 months' for over 15 but under 20. From 20 years a pension applies instead. Staff appointed from 2076 are on the contribution-based pension scheme (6% + 6%). A new federal civil service law may change these rules — check with your office.
Related: Salary tax calculator 2083/84 · PF and SSF deductions explained
Frequently Asked Questions
How is gratuity calculated in Nepal?
In the private sector, the Labour Act 2074 requires the employer to set aside 8.33% of your basic salary every month — about one month's basic salary for each year worked. For example, Rs 40,000 basic for 5 years is Rs 40,000 × 8.33% × 60 months = Rs 1,99,920.
Do I need to work 3 years to get gratuity?
Not under the current law. The old Labour Act 2048 had a minimum service period, but under the Labour Act 2074 gratuity is set aside from the first day of work and deposited in the Social Security Fund or a prescribed fund.
Is gratuity included in SSF?
Yes. Of the employer's 20% SSF contribution, 8.33% is gratuity and 10% is provident fund, with the rest for the risk-protection schemes. If your employer pays into SSF, your gratuity builds up there rather than being paid separately.
Is gratuity taxable in Nepal?
Partly. When a lump sum is paid by the government or an approved retirement fund such as SSF, the higher of Rs 5 lakh or 50% is tax-free and the rest is taxed at 5%. Gratuity paid by an employer from its own, unapproved fund is taxed differently (commonly 15% withholding) — ask your employer.
Sources checked 17 Sep 2026: Labour Act 2074 s.52–53 (Law Commission), Civil Service Act 2049 s.36–37, Income Tax Act 2058 s.88, Social Security Fund contribution rates.