Enter your basic pay and how long you've served, and the tool applies the Labour Act 2074 rule — one month of basic salary for each completed year — then separates the tax-free first Rs 5 lakh from any taxable amount on top.
Salary & tenure
Year-by-year gratuity buildup
Every year of service stacks on another month of basic pay. The tax-free versus taxable split tips over as soon as the running total passes Rs 5,00,000 — frequently around the fifth or sixth year for mid-range basic salaries.
| Year | Per-year gratuity | Cumulative total | Tax-free | Taxable |
|---|---|---|---|---|
| Enter salary and years of service to see the breakdown | ||||
Enrolled in the SSF? Start here
Anyone registered under the Social Security Fund does not collect gratuity as a separate payment — the employer's 20% SSF contribution folds gratuity in with medical, accident and pension benefits. If that describes you, the figure that matters is your SSF contribution rather than this calculator.
Open the SSF calculatorHow this calculator works
Gratuity is a statutory end-of-service entitlement set out in Section 53 of Nepal's Labour Act 2074. Every non-SSF employer must pay it once a worker departs after a minimum of one continuous year — whether they resign, are terminated, or retire.
The standard formula is straightforward: one month of basic pay for each completed year. In day-to-day practice some employers round a partial year up once six or more months have been served, while others count only whole years — this calculator lets you switch between the two methods.
- Built on Labour Act 2074, Section 53
- Applies the IRD's Rs 5,00,000 tax-free ceiling
- Year-by-year cumulative schedule with the tax split shown
- Switches between rounded and strict partial-year handling
- Runs entirely in your browser — your salary never leaves the page
Gratuity vs SSF — the quick sort
For edge cases — contract workers, partial SSF enrolment, or mid-career scheme changes — confirm with the IRD or a qualified tax adviser before relying on the figure.
Frequently asked questions
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