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Nepal Compliance
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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.

Check a simple slip before adding tax
Test lineNPR
Basic pay40,000
Allowance5,000
Gross earnings45,000
Illustrative employee deduction2,000
Net before tax and other adjustments43,000

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.