Salary Calculator Nepal

Understanding your actual take-home salary from a CTC (Cost-to-Company) offer is non-trivial in Nepal. Employers quote CTC, but your bank account receives significantly less. This calculator breaks down every deduction so you can make informed decisions about job offers, salary negotiations, and monthly budgeting.

What is CTC?

CTC includes everything the employer spends on you: your gross salary, employer's SSF contribution (20%), employer's gratuity provisions, and any other benefits. Your take-home is CTC minus employer SSF minus employee SSF minus tax minus CIT minus any other deductions.

SSF breakdown

Social Security Fund (SSF) contributions as of FY 2082/83: - Employee contributes 11% of basic salary (deducted from your salary) - Employer contributes 20% of basic salary (on top of your salary, part of CTC) - Total 31% of basic salary goes to SSF

The employee's 11% is deducted from your gross and reduces your taxable income. The employer's 20% is a cost to the company but does not appear in your take-home calculation directly.

CIT (Citizen Investment Trust)

Many employers offer CIT as an optional or mandatory deduction. You contribute 10% of basic salary (up to Rs. 3 lakh annually) to a retirement fund managed by CIT. This is deductible from taxable income, reducing your tax liability. The accumulated corpus earns returns and is paid out on retirement.

Allowances and tax treatment

Common Nepali salary components: - Basic salary: fully taxable - House rent allowance (HRA): taxable above exemption limits - Transport allowance: Rs. 2,500/month typically exempted - Medical allowance: Rs. 1,000/month typically exempted - Festival allowance (Dashain bonus): taxable in the month paid