Payroll / Practical guide
How to set up payroll for Nepal in ERPNext
Set up payroll in a test company, assign a dated salary structure to each employee, and check draft slips before paying.
Published by ERP Nepal · · Editorial approach
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Agree the rules first
Write down pay period, salaries, attendance policy, and contributions, each with an owner. Frappe HR examples are from India, not Nepal.
- Current Nepal tax rules confirmed.
- Opening earnings and tax if you start mid-year.
- App versions recorded.
References: Frappe HR: Payroll SetupFrappe HR: Payroll Settings
One structure, one assignment
Build salary components into a Salary Structure, then assign it to an employee with an effective date and tax slab.
References: Frappe HR: Salary StructureFrappe HR: Salary Structure Assignment ToolFrappe HR: Salary Component
Check a simple slip before adding tax
Test with fictional numbers first. If the result differs, check formulas and payment days.
| Test line | NPR |
|---|---|
| Basic pay | 40,000 |
| Allowance | 5,000 |
| Gross earnings | 45,000 |
| Illustrative employee deduction | 2,000 |
| Net before tax and other adjustments | 43,000 |
References: Frappe HR: Salary ComponentFrappe HR: Income Tax SlabFrappe HR: How to process Payroll
Questions and answers
Why is an employee missing from the payroll run?
Check their status, joining date, and salary assignment dates.
Can I copy tax slabs from a tutorial?
No. Your payroll reviewer approves the Nepal rules.
Sources and further reading
Checked 28 September 2026.