Gratuity & SSF Retirement Calculator
Excluding allowances
Legally Eligible for Payout
You have completed the mandatory 5 years of service. Your employer is legally obligated to pay the accumulated gratuity fund upon termination or resignation.
Result Summary
Benefit Ledger (Labor Act)
Labor Act 2074 (Section 53)
"Every employer shall deposit an amount equivalent to 8.33% of the basic remuneration of each worker in the Social Security Fund (SSF) or any other approved retirement fund."
Precision Terminal Benefits Engine
Navigating end-of-service entitlements requires absolute precision to ensure compliance with the Department of Labor. Our gratuity calculator nepal is specifically modeled around the labor act 2074 gratuity provisions. It programmatically enforces the statutory requirement that an employer must accrue exactly 8.33% of an employee's Basic Salary for every month worked from day one. For complete labor regulations, see the official Department of Labor website.
A critical feature of this tool is its evaluation of gratuity eligibility nepal. While the fund begins accumulating immediately, actual legal entitlement to withdraw the accumulated corpus generally requires the completion of 5 continuous years of service. If you are enrolled in the ssf gratuity nepal scheme, the logic differs slightly as the funds are locked within the state-run Social Security Fund rather than an internal corporate ledger.
Mathematical Framework & Taxation
- The 8.33% Constant: The algorithm mathematically defines a year's gratuity as exactly 1 month of your basic salary (since 8.33% × 12 months ≈ 100%). It operates strictly on the Basic component, excluding allowances.
- Fractional Years: The engine accepts decimal inputs (e.g., 5.5 years) to ensure that mid-year resignations are accurately prorated according to the exact number of months worked.
- Tax Exemptions: When computing gratuity tax nepal, the system isolates the tax-exempt threshold (typically 50% of the total or up to NPR 5 Lakhs, depending on the fund's approval status with the IRD). Any accumulated value exceeding this threshold is automatically subjected to a flat 15% withholding tax.
How to use
- Enter your monthly BASIC salary. Do not include travel, food, medical, or other allowances. Check your payslip for the exact 'Basic' breakdown.
- Enter the total number of years you have worked for the company. You can use decimals (e.g., 5.5 for 5 years and 6 months).
- The system will immediately verify your eligibility. Note that standard eligibility requires 5 full years of continuous service.
- Review your 'Total Accumulated Gratuity Fund'. This is the gross amount you are entitled to.
- Check the 'Benefit Ledger' to understand how much of your payout is tax-exempt versus how much is subject to the 15% IRD tax.
Labor Act Calculation Rule
The calculation mandates an 8.33% monthly accumulation on the base salary alone.
Frequently Asked Questions
Know Your Rights
The Labor Act 2074 protects your retirement and termination benefits.
Financial Rates
Verified Data