In Nepal, the first NPR 400,000 of annual income is tax-free for individuals. This means you don't pay any income tax on the first NPR 400,000 you earn in a year.

Provident fund is typically calculated as 10% of your basic salary. Both employee and employer contribute 10% each, making the total contribution 20% of basic salary. However, only the employee's contribution is deducted from your salary.

As of current Nepal tax laws:

• First NPR 400,000: 1%
• Next NPR 100,000 (400,001-500,000): 10%
• Next NPR 200,000 (500,001-700,000): 20%
• Above NPR 700,000: 30%

Yes, besides income tax and provident fund, there may be other deductions including:

• Citizen Investment Trust (CIT) deductions
• Social Security Fund contributions
• Insurance premiums
• Loan repayments
• Other voluntary deductions

In Nepal, married individuals may be eligible for certain tax benefits, particularly if they have children. The tax calculation may consider family status when determining applicable deductions and exemptions.

A salary calculator is particularly useful when:

• Evaluating a new job offer
• Planning your monthly budget
• Negotiating a salary increase
• Understanding your compensation package
• Planning for tax filing

While our calculator provides accurate estimates for standard employment in Nepal, certain employment types may have different tax treatments:

• Government employees: May have different allowance structures
• Contract workers: May be subject to different withholding rates
• Commission-based employees: Tax calculation may differ