How to Read a Nepali Salary Slip FY 2083/84

Published on 8 October 2026. Last updated: 8 October 2026.

A Nepali payslip is a compact statement that shows every earning, every deduction, and the legal or contractual basis for each figure. Below is a line‑by‑line guide for the fiscal year 2083/84 (mid‑July 2026 – mid‑July 2027), with links to the official sources you can check yourself.

1. Gross earnings

Basic salary

Fixed amount agreed in your appointment letter. Set by the employer, often guided by sector‑wide collective bargaining. Verify against the latest salary revision notice from HR.

Allowances

Transport, meal, mobile, and similar items. Determined by internal company policy, not by statute. Each allowance should appear on its own line; confirm rates in the employee handbook or with payroll.

Overtime pay

The Labour Act 2074 mandates a minimum of 1.5 × the normal hourly wage for hours worked beyond the standard schedule. Employers may pay a higher multiplier but never less. The Act also caps overtime at 24 hours per week. Cross‑check the hours on your timesheet or attendance record.

Festival allowance (Dashain/Tihar)

Applies to establishments with ten or more workers. After one year of continuous service you are entitled to one month’s basic salary, payable before the start of the autumn festival period as stipulated in the Labour Act 2074 and its Rules. See the Act on the Nepal Law Commission site.

2. Statutory deductions

Social Security Fund (SSF) – employee share

10 % of basic salary, deducted monthly and remitted to the SSF. The rate is fixed by the Social Security Act; you can view the current schedule on the Social Security Fund rates page.

Social Security Tax (1 %)

A separate 1 % tax on gross salary (basic + allowances) that also goes to the SSF. It appears as its own line on most SSF‑covered payslips.

Employees Provident Fund (EPF / Sanchaya Kosh) – employee share

10 % of basic salary for members of the EPF. The contribution rate is set by the EPF Act; the latest rates are published on the EPF member portal.

Income tax (TDS)

Employers withhold tax on taxable income (basic + allowances − eligible deductions) using the IRD’s annual tax‑rate schedule. Eligible deductions include:

• SSF/EPF contributions (up to 10 % of basic salary)
• Life‑insurance premiums (capped at NPR 25,000 per year)
• Medical‑insurance premiums (capped at NPR 20,000 per year)
• Approved donations (up to 5 % of taxable income)

3. Employer contributions (not part of take‑home pay)

Directly below each employee deduction you’ll usually see a matching employer line – “Employer SSF contribution” and/or “Employer EPF contribution”. Both are 10 % of basic salary. These funds belong to you but can only be accessed under defined conditions: retirement, permanent disability, death, termination of employment, or approved partial withdrawals (e.g., home purchase for EPF). Check the respective fund’s benefit rules for details.

4. Other common deductions

• Leave / absence deductions – calculated on a pro‑rata basis from basic salary when unpaid leave exceeds the entitled quota.
• PF loan recovery – instalments for loans taken against your EPF balance, shown as a separate line.
• Advance repayments, union dues, voluntary savings – based on written agreements; keep the original letters or membership cards for verification.

5. Net pay calculation

Gross earnings (basic + allowances + overtime + festival allowance) minus total deductions (statutory + other) equals net pay. The payslip should display each of these three totals clearly.

How to keep track

Save every monthly slip in a dedicated folder (digital or paper). Once a year download your SSF and EPF member statements and confirm that employee and employer totals match the cumulative figures on your slips. When the annual tax certificate arrives, add up the monthly TDS amounts and compare. If any line looks wrong, raise the issue with payroll in writing and keep the correspondence.

Sources (checked 8 October 2026)

• Finance Act for FY 2083/84 – Ministry of Finance publications page: mof.gov.np/publications
• Inland Revenue Department individual income‑tax rates for FY 2083/84: ird.gov.np/tax-rates
• Social Security Fund contribution rates and 1 % Social Security Tax: ssf.gov.np
• Employees Provident Fund (Sanchaya Kosh) member contribution details: epf.gov.np
• Labour Act, 2074 (2017) – festival allowance and overtime provisions: lawcommission.gov.np

This article provides general information about reading Nepali salary slips. It is not tax, legal or financial advice. For definitive figures, rates or procedural details, always consult the official sources listed above.