Gratuity Calculator
Calculate your end-of-service benefits including gratuity, leave encashment, and total retirement package based on the Nepal Labor Act and Government rules.
Employment Details
Used to calculate leave encashment (based on 26 working days/month).
Additional Retirement Funds (Optional)
Retirement Package
Total Estimated Package
NPR 1,82,692
If you invest this total package in a Mutual Fund/SIP at 10% annual return for 10 years, it could grow to:
NPR 4,73,856
Calculate your SIPAbout Gratuity in Nepal
Private Sector (Labor Act)
According to the Labor Act of Nepal, employees who have completed at least 1 year of continuous service are entitled to gratuity.
- First 7 years: Half month's salary for each year of service.
- After 7 years: Two-thirds (2/3) of a month's salary for each year of service.
Note: With the introduction of the Social Security Fund (SSF), employers now contribute 8.33% of the basic salary monthly towards the gratuity fund instead of paying a lump sum at the end, for employees enrolled in SSF.
Government Sector
For government employees, gratuity is provided to those who have completed 5 years or more of service but are not eligible for a pension (less than 20 years).
- 5 to 10 years: Half month's salary for each year.
- 10 to 15 years: One month's salary for each year.
- 15 to 20 years: One and a half month's salary for each year.
Leave Encashment
Accumulated home leave and sick leave can be encashed at the time of retirement or resignation. The calculation is typically based on the last drawn basic salary divided by 26 (assumed working days in a month) multiplied by the number of accumulated leave days.