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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.