Payroll Software in Nepal: 12 Things to Check Before You Buy
A checklist for choosing payroll and HR software in Nepal: FY 2083/84 tax slabs, SSF, CIT, e-TDS, Bikram Sambat calendar, Labour Act leave, festival allowance, attendance and pricing in NPR.
This guide is for Nepali businesses moving payroll out of Excel. Software built for India, the US or Europe usually doesn't handle Nepal's rules; this list helps you check.
Most payroll software looks the same in a demo. The differences show up at month end, when Dashain allowance, SSF and a mid-year raise all land at once. Ask about these 12 things.
Nepal tax and compliance
1. Is it already on the FY 2083/84 slabs?
This year's budget changed everything: the 1% band rose to Rs 10 lakh, the top rate fell to 29%, and there's one table for everyone. Ask the vendor to show a payslip calculated on the new slabs. See the slab guide.
2. Does it calculate TDS against the whole year?
Raises, bonuses and mid-year joiners break simple "monthly salary × rate" calculators. The software should recalculate each month against expected yearly income.
3. SSF done properly?
That means 11% and 20% on basic, the 1% social security tax waived for contributors, and the employer share included in taxable income and then deducted. See the SSF guide.
4. CIT, PF, insurance and the other deductions?
It should apply the combined retirement cap (Rs 5 lakh or one-third of income) and the insurance deductions employees declare.
5. e-TDS-ready export, with 11211 and 11111 split?
Ask to see the export, and check it against IRD's sample upload file. See the TDS guide.
6. A deadline calendar for TDS, SSF and CIT in BS dates?
Reminders before the 15th and the 25th save you late fees.
Nepal ways of working
7. Bikram Sambat (BS) calendar throughout.
That includes pay periods by Nepali month, the fiscal year Shrawan to Asar, and payslips showing BS dates.
8. Labour Act leave rules.
Home leave earned per 20 days worked, sick leave 12 days, carry-forward limits of 90 and 45 days, and maternity, paternity and mourning leave. See leave rules.
9. Festival allowance.
One month's basic, prorated for new joiners, taxed correctly. See Dashain allowance tax.
10. Attendance that feeds payroll.
Phone check-in, a kiosk, or your existing biometric device, with late days, leave and overtime going straight into salary. See attendance options.
Practical questions
11. Pricing in NPR, with local payment.
Can you pay by local bank or wallet, or do you need a dollar card? Is the price per employee, and what happens as you grow?
12. Employee self-service on the phone.
Staff should see payslips, leave balance and attendance themselves. That alone removes most of HR's daily questions.
Questions to ask in the demo
- "Show me a payslip for someone in SSF earning Rs 1.2 lakh a month on this year's slabs."
- "What happens to TDS if I give this person a raise in Poush?"
- "Show me the e-TDS export for last month."
- "How does Dashain allowance appear on the payslip and in TDS?"
- "Can I import past payroll so the year-to-date tax is right?"
Where TeamKro fits
TeamKro is built in Nepal for Nepali payroll. It covers everything above: the FY 2083/84 slabs, TDS recalculated against the year, SSF, CIT and PF, an e-TDS-ready export, a BS deadline calendar, Labour Act leave, festival allowance, phone and biometric attendance, and an employee app. You can also import past payroll from Excel so year-to-date tax is right from your first month. Book a demo or see pricing.
Last checked 31 October 2026. Rules referenced are Nepal-specific; see the linked guides for sources.