Salary calculator Nepal: net pay after SSF, PF, CIT and tax

Net pay at common salaries, FY 2083/84

Worked with SSF, basic salary at 60% of the total, no CIT or insurance, and no once-a-year pay. Change any of these in the calculator and the figures move.

• Rs 30,000 a month — SSF Rs 1,980, tax Rs 0, net pay Rs 28,020
• Rs 50,000 a month — SSF Rs 3,300, tax Rs 0, net pay Rs 46,700
• Rs 80,000 a month — SSF Rs 5,280, tax Rs 0, net pay Rs 74,720
• Rs 1,20,000 a month — SSF Rs 7,920, tax Rs 2,875, net pay Rs 1,09,205
• Rs 2,00,000 a month — SSF Rs 13,200, tax Rs 16,527, net pay Rs 1,70,273

SSF or provident fund: what changes

In both funds the employer's share counts as your income for tax and as your retirement contribution, and contributions are deducted before tax up to the lowest of the actual amount, one third of income and Rs 5,00,000 a year. Your payslip or appointment letter says which fund you are in.

• Social Security Fund (SSF). You pay 11% of basic salary and the employer pays 20%. The first tax band, 1% on income up to Rs 10,00,000, is waived for SSF contributors.
• Provident fund. You pay 10% of basic salary and the employer pays 10%, and the employer also sets aside gratuity at 8.33% of basic. The 1% band applies.
• Neither. Nothing is deducted for retirement and nothing is added by the employer. The 1% band applies.

What CIT does to your pay

A Citizen Investment Trust deposit comes out of your pay each month and lowers the income that is taxed, within the same limit as the fund contributions. It reduces this month's net pay by more than it saves in tax, because the money is saved in your name rather than spent. Below the Rs 10,00,000 band, where an SSF contributor pays no tax, CIT saves no tax at all.

Cost to the employer

The calculator also shows the monthly cost of the post: gross pay plus the employer's 20% under SSF, or plus 10% provident fund and 8.33% gratuity outside it. This is the figure a business should budget when it makes an offer, and it is what "CTC" means when a Nepali offer letter uses the term.

Writing the offer? The job offer letter and appointment letter tools ask for the same basic and allowance figures, and the salary slip maker prints the month's slip.

What this calculator leaves out

For the tax worked out slab by slab, see the income tax calculator. For the legal minimum and what must be paid on top of it, see minimum salary in Nepal.

• Tax is spread evenly over twelve months. Payroll re-estimates it each month, so the slip in a bonus month will differ slightly while the year's total is the same.
• Remote-area allowance, medical tax credit, foreign allowance and income outside employment are not included.
• Gratuity is shown as an employer cost and is not taxed here month by month.
• Government employees: use the government salary calculator, which has the official scale and grades.