Free Payslip Generator (Nepal)

The Labour Act 2074 sets when pay is due and what may come out of it. Under section 34, a worker is entitled to remuneration and benefits from the day work starts. Under section 35, pay is made at the time stated in the employment contract or, if the contract is silent, at the time the employer fixes, and the gap between pay dates cannot exceed one month. A worker employed for less than a month is paid within three days of the work ending, and a casual worker as soon as the work ends.

Section 38(1) lists the only deductions an employer may make: tax and fees due under law; contributions to a provident fund, insurance or social security; amounts ordered by a court, tribunal or arbitrator; the prescribed value of services or benefits the employer supplied; pay for time lost from work; cash or stock lost through malicious or negligent acts, as recorded in the stock book; amounts set by a collective agreement; trade-union subscriptions; and loans or advances. Tax and social-security contributions come out first, and the other deductions are taken from the monthly pay that remains (section 38(2)). The limits and method are set by rules (section 38(3)).

No official payslip layout is prescribed in the provisions above. A payslip that lists basic pay and allowances, each deduction under section 38, the tax withheld and the net amount paid, with the pay period and the date of payment, is the clearest record that the employer has followed sections 35 and 38.

Nepal runs two employer-side systems. Under the Labour Act 2074 the employer deducts 10% of the worker's basic remuneration for the provident fund and adds an equal amount (section 52), and deposits 8.33% of basic remuneration every month as gratuity (section 53). An employer and worker who contribute under the Social Security Fund scheme do not make these additional contributions (section 57).

The Social Security Fund (सामाजिक सुरक्षा कोष) is governed by the Contribution-Based Social Security Act 2074. The employer registers with the Fund and deposits both the employer's share and the amount deducted from the worker. The deposit must reach the Fund within 25 days after the end of the month for which the contributable income is payable (section 4(4)). A late deposit is recovered with 10% interest (section 9). The percentages are fixed by Ministry notice in the Nepal Gazette on the recommendation of the Fund's committee (section 7), and the committee's own rule contemplates rates of up to 20% from the employer and 11% from the worker (section 30).