Allowance भत्ता
Allowance लाई नेपालीमा भत्ता (bhatta) भनिन्छ। यो आधारभूत तलबका अतिरिक्त कुनै खास प्रयोजनका लागि नियमित रूपमा दिइने रकम हो, जस्तै महँगी भत्ता, यातायात भत्ता वा सञ्चार भत्ता। An allowance is a regular payment made on top of basic salary for a specific purpose, such as dearness, transport or communication. Allowances count as taxable earnings but are excluded from the base used for PF, SSF, gratuity and overtime.
Also called: bhatta, allowances, salary allowance Nepal
Taxable, but not contributory
This is the single distinction that matters. An allowance is part of gross salary and therefore taxable, but it is not part of basic salary and therefore does not increase PF, SSF, gratuity or the overtime rate.
That asymmetry is why the basic-to-allowance split is a live decision in every Nepali salary structure rather than a formatting choice.
Common allowances, by their Nepali names
- महँगी भत्ता (mahangi bhatta): dearness allowance, the cost-of-living part named in the government's minimum wage notice.
- यातायात भत्ता (yatayat bhatta): transport allowance.
- सञ्चार भत्ता (sanchar bhatta): communication or mobile allowance.
- इन्धन भत्ता (indhan bhatta): fuel allowance, where paid as a fixed monthly amount rather than reimbursed against bills.
- दशैं खर्च or दशैं भत्ता: the everyday names for the festival expense. The Labour Act 2074 names it चाडपर्व खर्च (chadparva kharcha) and sets it at one month's basic, paid once a year, so it is a statutory payment rather than a monthly allowance.
Allowance or reimbursement
A fixed monthly payment is an allowance and is taxable. A reimbursement against an actual expense, supported by a bill, is a different thing entirely and is not remuneration; Nepali offices call it शोधभर्ना (sodhbharna). Companies that pay a fixed sum but call it a reimbursement create a problem for themselves at assessment time, because the label does not decide the treatment.
Where भत्ता sits on a Nepali payslip
The earnings lines of a payslip (तलब पर्ची) at Nepal's minimum wage. The second line is the भत्ता.
- आधारभूत तलब (basic salary)
- रु. 12,170
- महँगी भत्ता (dearness allowance)
- रु. 7,380
- कुल तलब (gross salary)
- रु. 19,550
Both lines are taxed as part of कुल तलब. Only the आधारभूत तलब line is used for PF, SSF and gratuity. The split is the minimum wage fixed under section 106 of the Labour Act 2074, effective Shrawan 1, 2082.
Allowance, answered
भत्ता (bhatta). It is the word a Nepali payslip uses for any regular payment on top of आधारभूत तलब (basic salary), such as महँगी भत्ता (dearness allowance) or यातायात भत्ता (transport allowance).
Yes. Allowances form part of gross salary and are taxed with the rest of it. What they are excluded from is the contribution base for PF, SSF, gratuity and overtime.
No. PF, SSF and gratuity are all assessed on basic salary only.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Put it into practice
Related terms
- Dearness Allowanceमहँगी भत्ताDearness allowance लाई नेपालीमा महँगी भत्ता (mahangi bhatta) भनिन्छ। यो बढ्दो महँगीको भार कम गर्न आधारभूत तलबका अतिरिक्त दिइने भत्ता हो। Dearness allowance is a cost-of-living payment made on top of basic salary. Nepal's minimum wage is published as NPR 12,170 basic plus NPR 7,380 dearness allowance a month, and the allowance is taxed but kept out of PF, SSF and gratuity.
- Basic Salaryआधारभूत तलबBasic salary लाई नेपालीमा आधारभूत तलब (adharbhut talab) भनिन्छ, र नेपालमा यसको न्यूनतम रकम मासिक रु. 12,170 हो। The minimum basic salary in Nepal is NPR 12,170 a month, part of the NPR 19,550 minimum wage fixed under section 106 of the Labour Act 2074 (Nepal Gazette, 2082/04/05 BS, effective Shrawan 1, 2082). Basic salary is the fixed core of an employee's pay, before allowances, overtime and bonuses, and it is the base every statutory contribution is assessed on.
- Gross Salaryकुल तलबGross salary लाई नेपालीमा कुल तलब (kul talab) भनिन्छ। यो कुनै पनि कट्टी गर्नुअघिको आधारभूत तलब, सबै भत्ता र ओभरटाइमको जम्मा रकम हो। Gross salary is an employee's total earnings for a period before any deduction: basic salary plus every allowance, overtime and taxable benefit. It is the figure most offer letters quote and the one employees compare against.
- Remunerationपारिश्रमिकRemuneration लाई नेपालीमा पारिश्रमिक (parishramik) भनिन्छ। यो कामबापत कर्मचारीले पाउने तलब, ज्याला र भत्ता सबैलाई जनाउने औपचारिक शब्द हो। Remuneration is the formal word for everything an employee is paid for their work: salary or wages plus allowances. The Labour Act 2074 uses पारिश्रमिक where everyday speech says तलब.
- Festival Expenseचाडपर्व खर्चFestival expense is a statutory payment of one month's basic remuneration, made once a year at the festival the employee celebrates. It is the Nepali equivalent of a thirteenth-month salary, and it is an entitlement under the Labour Act 2074 rather than a discretionary bonus.
- Payslipतलब पर्चीA payslip is the statement an employer issues each pay period showing earnings, deductions and net pay. In Nepal it is the employee's proof of income and of the tax and contributions withheld on their behalf.
- Minimum Wageन्यूनतम पारिश्रमिकMinimum wage लाई नेपालीमा न्यूनतम पारिश्रमिक (nyunatam parishramik) भनिन्छ। नेपालमा अहिले यो मासिक रु. 19,550 छ, जसमा आधारभूत पारिश्रमिक रु. 12,170 र महँगी भत्ता रु. 7,380 पर्छन्। The minimum wage is the lowest remuneration an employer in Nepal may lawfully pay. The rate in force is NPR 19,550 a month, made up of NPR 12,170 basic remuneration plus NPR 7,380 dearness allowance, or NPR 754 a day and NPR 101 an hour. It was fixed by the Government of Nepal under section 106 of the Labour Act 2074, published in the Nepal Gazette on 2082/04/05 BS and effective from Shrawan 1, 2082.
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