How to use the gratuity calculator
For a constant salary, enter the monthly basic salary and service months. If salary changed, switch to Salary history and add each salary period. Enter any amount already deposited or received to estimate the remaining balance.
Nepal Labour Act gratuity formula
Section 53 of the Labour Act 2074 requires the employer to deposit 8.33% of basic remuneration every month from the worker’s first day of employment. The estimate is therefore: basic salary × 8.33% × months.
Example: Rs 30,000 basic salary for 24 months gives a monthly accrual of Rs 2,499 and an estimated contribution of Rs 59,976. If the salary changed, each period should be calculated at its actual basic remuneration.
Gratuity and SSF are connected, but not identical
The Labour Act directs eligible contribution amounts into the Social Security Fund. This calculator estimates the statutory gratuity contribution attributable to employment; it does not estimate investment return, pension conversion, claim eligibility or the exact amount visible in an SSF account.
Official source and limitation
Rule reviewed June 2026 against Section 53 of Nepal’s Labour Act 2074. Use payroll records and an employer/SSF statement for final settlement.
Frequently asked questions
What is the gratuity rate under Nepal's Labour Act?
Section 53 of the Labour Act 2074 requires an employer to deposit 8.33% of the worker's basic remuneration every month from the start of employment.
Does a worker need five years of service to receive gratuity in Nepal?
The Labour Act 2074 contribution rule starts from the first day of employment. The common five-year rule found in some other countries should not be applied to this Nepal calculation.
Should I use basic salary or gross salary?
Use basic remuneration. Allowances and other gross-pay components are not automatically part of the statutory 8.33% gratuity base.
Why use salary history?
If basic salary changed, calculating each salary period separately is more accurate than multiplying the latest salary by the full service duration.