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🇳🇵 NEPAL LABOR ACT 2074 (श्रम ऐन २०७४)

Nepal Gratuity & Severance Calculator

Compute statutory end-of-service terminal benefits under Sections 53, 144 & 145 of Nepal's Labor Act 2074. Calculate 8.33% monthly gratuity, 1-month-per-year retrenchment compensation, notice pay, and leave encashment.

Separation Details

NPR

Contractual base salary (exclusive of allowances)

> 6 months counts as full year for retrenchment

Terminal Settlement Package

Total Gross Terminal Settlement
NPR 469,231

Payable in full on final employment release voucher

Recognized Tenure for Compensation 7 Years (Rounded >6mo)
Retrenchment Severance Pay (1 mo/yr) NPR 350,000
Statutory Gratuity Balance (8.33%) In SSF Fund / Settled
Payment in Lieu of Notice (30 Days) NPR 50,000
Home & Sick Leave Encashment (36 Days) NPR 69,231
Net Cheque Disbursed to Worker NPR 469,231

📊 Statutory Breakdown Matrix

Statutory Component Amount / Metric
Recognized Service Tenure --
Statutory Retrenchment Severance --
Labor Act Accrued Gratuity --
Notice Period Compensation in Lieu --
Unused Accrued Leave Settlement --
Total Statutory Final Settlement --

Legal Framework: Terminal Benefits under Nepal Labor Act 2074

Statutory Head Governing Section Statutory Formula Eligibility Conditions
Gratuity (उपदान) Section 53 8.33% of basic remuneration monthly From 1st day of appointment into SSF
Retrenchment (कटौती मुआब्जा) Section 145 1 month basic salary per completed year Downsizing / redundancy; >6mo counts as 1 full year
Notice Pay (सूचना बापत) Section 144 30 days basic pay for tenure >1 year Required if employer waives 1-month advance notice
Leave Cash-out (बिदा सञ्चिति) Section 45 Basic salary ÷ 26 × Accrued days Max 90 days home leave + 45 days sick leave
MS

Engr. Muhammad Shahzad

Principal Financial Systems Architect & Statutory Compliance Specialist

Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.

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