Payroll & HR Software in Nepal (2026): 7 Options Compared, New Tax Slabs, SSF Rules & Real Costs

Last updated: Kartik 2083 (October 2026) · Reading time: about 14 minutes

Running payroll in Nepal looks simple until the first month you get it wrong. One salary sheet has to juggle Bikram Sambat dates, the Social Security Fund (SSF), income tax deducted at source (TDS), the Dashain festival allowance, gratuity, overtime and bank transfer files — and the rules changed again this year. From Shrawan 1, 2083, Nepal moved to new income tax slabs, so any payroll system still running last year’s table is deducting far too much tax from your staff.

This guide compares the main payroll and HR software options in Nepal, explains exactly which compliance rules a system must handle in FY 2083/84, shows real NPR costs, and gives you a checklist and demo questions so you can choose with confidence — whether you run a 6-person startup or a 600-person company.

What Payroll and HR Software Actually Does in Nepal

“HR software” and “payroll software” are often used as the same thing in Nepal, but they cover different jobs. A Human Resource Management System (HRMS) manages people: employee records, attendance, leave, recruitment, onboarding and performance. Payroll software turns that data into money: salary, deductions, tax, SSF and payslips. Most Nepali vendors now sell both as one platform, because payroll is only as accurate as the attendance and leave data feeding it.

Here is how a typical monthly payroll cycle flows through a Nepal-ready system:

Figure 1: The monthly payroll cycle in Nepal — each step feeds the next, which is why errors in attendance become tax errors.

Why Excel stops working

Many Nepali companies still run payroll on a spreadsheet. It works for five people. Beyond that, the problems pile up:

• Tax slab changes are manual. When the slabs changed on Shrawan 1, 2083, every formula had to be rewritten by hand.
• TDS must be projected annually. Monthly TDS is based on projected yearly income, so every raise, bonus or unpaid leave changes the remaining months.
• No audit trail. Who changed a basic salary, and when? A spreadsheet rarely tells you.
• Duplicate work. HR re-types attendance, finance re-types salaries into the bank portal and accounting software.
• Payslip requests. Staff keep asking HR for payslips and tax certificates instead of downloading them.

The 2026 Compliance Rules Your Software Must Get Right

This is the section most vendor blogs skip or leave outdated. Before you look at features or design, make sure any software you shortlist handles these rules correctly for FY 2083/84 (Shrawan 2083 to Ashadh 2084).

1. New income tax slabs for FY 2083/84

The FY 2083/84 budget, presented on Jestha 15, 2083, doubled the 1% band from Rs 5 lakh to Rs 10 lakh and cut the top personal rate from 39% to 29%. It also replaced the separate single and married tables with one uniform table for resident individuals. The new slabs apply to payroll TDS from Shrawan 1, 2083 (mid-July 2026).

Table 1: Individual income tax slabs for FY 2083/84 as announced in the budget. Confirm final figures, the SSF-member treatment of the 1% band and any rebates with the IRD or your auditor before your next payroll run.

Why this matters for software choice: the gap between the old and new tables is huge. If your system has not been updated, it is over-deducting TDS every month. Here is the yearly tax on the same taxable income under each table (single filer, before deductions and rebates):

Figure 2: Calculated by wilson.com.np from the published slab tables. On Rs 18 lakh taxable income, an un-updated payroll system would over-deduct about Rs 17,000 every month.

2. SSF: 31% of basic salary

Under the Contribution-based Social Security Act, enrolled employers deposit 31% of each employee’s basic salary into the SSF every month. The employer pays 20% on top of salary and deducts 11% from the employee. Read our complete SSF Nepal guide for enrolment and benefits.

Figure 3: SSF contribution split as a share of the total 31%.

Your software should also:

• Keep SSF and old PF/gratuity schemes separate for organisations still in transition.
• Flag structures where basic salary falls below 60% of gross pay. Loading pay into allowances to shrink SSF is increasingly scrutinised.
• Produce the monthly SSF contribution sheet so deposits are made within 15 days of month-end. Employees can then verify deposits themselves — see how to check SSF balance online.

3. TDS deposit and eTDS return

Salary TDS must be deposited and the eTDS return filed through the IRD taxpayer portal within 25 days of the end of the Nepali month in which it was deducted. Employees also need a withholding certificate so they can claim the credit. Good payroll software exports the eTDS file in the IRD’s upload format, so nobody re-types PAN numbers and amounts.

4. Labour Act 2074 items

7 Payroll and HR Software Options in Nepal Compared

Almost every “best HR software in Nepal” article online is written by a vendor ranking itself first. We have no commercial relationship with any company below. Features are based on each vendor’s own published material and independent listings, so treat them as claims to verify in a demo.

Table 2: Nepal HR and payroll software at a glance (October 2026). Prices change; always ask for a written quote including VAT.

1. RigoHR — the established market leader

RigoHR is the name most HR managers in Nepal already know. The company says it serves 500+ organisations, including Nepal’s largest bank, and has worked only on HR software for over a decade. Payroll covers income tax, SSF, PF, CIT, insurance and tax planning, with maker-checker approval and statutory and accounting reports. Most employee tasks are covered in its mobile app.

• Strengths: deep compliance coverage, long track record, strong support reputation.
• Watch out for: per-employee pricing adds up as you grow; reviewers note it costs more than local alternatives and the vendor does not customise the software.

2. NepalHRM — best free option for small teams

Launched in Kathmandu in July 2026, NepalHRM is free forever for teams of up to 10 employees, with no card required. It comes pre-configured for PF, CIT, SSF and eTDS, produces bilingual Nepali and English payslips, bank transfer files and the IRD eTDS file, and connects with ZKTeco, Anviz, Realand and Hikvision biometric devices.

• Strengths: zero cost for micro-teams, BS-calendar shifts and holidays, support in English and Nepali via phone and WhatsApp.
• Watch out for: it is a new product, so ask for references from companies of your size before moving a large payroll.

3. Pace HRMS

Built by Pace Infosys in Hattisar, Kathmandu, Pace HRMS is a cloud, all-in-one HR and payroll platform pitched as “built for Nepal, not adapted to it”, with Nepal tax-slab and SSF calculations, employee self-service payslips and a Nepal-based setup and support team. Pricing is not published, so request a quote for your headcount.

4. PayTime

PayTime is a browser-based HR suite developed for Nepali companies with 10 to 5,000 employees. It covers attendance, payroll, recruitment and retirement, plus document and task management, and is aimed at all industries. It suits organisations that want one cloud system without running servers.

5. ARKBO HRM

ARKBO builds cloud HRM and payroll for several countries with Nepal-specific workflows: SSF and PF, income-tax configuration, TDS records, attendance, allowances and audit trails. It is worth a look if you operate across multiple branches and need multi-location attendance rather than a single fixed shift.

6. Leave Balance + PayrollApp

A newer, developer-friendly option with public APIs, webhooks, SSO and Slack, Teams and Google Chat integration. It lists gratuity, SSF/PF, TDS, the IRD report, festival allowance and bank files for major Nepali banks, and has proposed a flat Rs 2,490 per month for unlimited employees. The vendor openly says native mobile apps, some niche tax cases and a custom report builder are still in progress.

7. RealHRsoft

A Kathmandu-based cloud HR platform with HR management, automated reports, a task module and a mobile app, with a 7-day demo. Confirm its payroll depth (SSF, eTDS export, bank files) during the demo, as public details focus on HR rather than tax.

How Much Does Payroll Software Cost in Nepal?

Most Nepali HR software is sold as a monthly subscription (SaaS), either per employee or as a flat fee. Here is what the published prices mean at different team sizes:

Table 3: Monthly software cost by headcount, excluding VAT, setup, biometric devices and custom work.

Hidden costs to budget for

• Biometric attendance devices and their integration.
• Onboarding and data migration — some vendors include a specialist, others charge.
• Custom reports or salary structures outside the standard templates.
• Your own HR time — the real saving is hours not spent fixing spreadsheets.

Worked example: the real cost of one employee

Software should show you the full cost to company, not just gross salary. Take an employee on Rs 60,000 gross per month, with Rs 40,000 basic (67% of gross) and Rs 20,000 allowances, enrolled in SSF:

Figure 4: Cost-to-company breakdown. Overtime, insurance and other benefits would add to this.

Payroll Software vs HRMS vs Accounting Software vs EOR

Buyers often pick the wrong category. Use this to decide what you actually need:

Buyer’s Checklist: 12 Things to Check Before You Sign

Questions to ask in every demo

Do not let the vendor drive the demo. Bring your own scenarios and ask them to run these live:

1. “Show me one employee’s Kartik 2083 payslip using the new slabs, then show the yearly TDS projection.”
2. “An employee gets a raise in Poush. How does the system recalculate TDS for the remaining months?”
3. “Process a mid-year resignation with leave encashment and show the final TDS.”
4. “Export this month’s eTDS file and SSF contribution sheet.”
5. “How fast did you update for the FY 2083/84 budget, and did customers have to pay?”
6. “If we leave, in what format do we get our full payroll history?”

How to Switch from Excel Without Breaking Payroll

Follow this rollout plan to switch safely:

Timing tip: switching at the start of a fiscal year (Shrawan) is cleanest. If you switch mid-year — as you would now in Kartik — importing year-to-date figures is not optional, because TDS is calculated on the whole year.

Common Payroll Mistakes in Nepal (and How Software Prevents Them)

• Still using FY 2082/83 slabs. Over-deducts TDS and frustrates staff. Ask your vendor for proof of the update.
• Artificially low basic salary. Keeping basic under 60% of gross to cut SSF invites disputes. Good systems warn you.
• Late SSF enrolment. The legal risk sits with the employer, and SSF compliance is now checked at business registration renewal.
• Forgetting the festival allowance is taxable. The Dashain payment must be included in the annual TDS projection.
• Missing the 25-day eTDS window. Late deposits attract interest and penalties; reminders and one-click exports help.
• No final-settlement recalculation. Exits need a full TDS recompute, not just last month’s salary.

Industry Notes: Who Needs What

• Hotels and restaurants: rotating shifts, night duty and service charge distribution matter most. Pair payroll with your hotel management software.
• Pharmacies and clinics: long opening hours mean shift and overtime rules are key. See our pharmacy billing software guide for the billing side.
• Retail, distribution and warehouses: multi-location attendance and daily-wage staff. Combine with inventory management software so stock and staffing data live in connected systems.
• IT companies and INGOs: remote staff, mobile check-in, project codes and donor-wise payroll reports.

Frequently Asked Questions

What is the best payroll software in Nepal?

There is no single best choice for everyone. RigoHR is the most established option for mid-size and large organisations, while NepalHRM is the strongest free choice for teams of up to 10. Shortlist two or three Nepal-built tools and run the demo questions above before deciding.

Is there free HR software in Nepal?

Yes. NepalHRM is free forever for teams of up to 10 employees, including payroll, attendance and leave. Larger teams pay per active employee in NPR.

How much does HR software cost in Nepal?

Published prices range from free (small teams) to about Rs 250–500 per employee per month. A flat-fee model of around Rs 2,490 per month has also been proposed. Budget extra for biometric devices, setup and VAT.

What are the income tax slabs in Nepal for FY 2083/84?

As announced in the budget: 1% up to Rs 10 lakh, 10% from Rs 10–15 lakh, 20% from Rs 15–25 lakh, 27% from Rs 25–40 lakh, and 29% above Rs 40 lakh, applied from Shrawan 1, 2083.

How is SSF calculated in payroll?

SSF is 31% of basic salary: the employer contributes 20% and 11% is deducted from the employee. It is calculated on basic salary, not gross, and deposited monthly.

Can I use BambooHR or Zoho for payroll in Nepal?

You can use them for HR records and leave, but not for compliant payroll. They do not handle SSF, Nepali TDS slabs, eTDS files or the BS calendar.

Does payroll software need IRD approval in Nepal?

No formal approval like billing software. IRD approval and CBMS rules apply to sales invoicing software. For payroll, the requirement is correct TDS, timely deposits and an accurate eTDS return.

Final Verdict

The right payroll and HR software in Nepal is the one that gets local compliance right first and looks good second. In FY 2083/84 that means the new slabs, SSF at 31% of basic, a ready eTDS file and bank salary files. Small teams can start free with NepalHRM; established organisations will find RigoHR the safest known quantity; and Pace HRMS, PayTime, ARKBO, RealHRsoft and Leave Balance are worth demoing if you want a different price or workflow.

Shortlist three, run the six demo questions with your own data, check the vendor updated for the new budget, and plan a one-month parallel run. That process protects your staff’s take-home pay — and your company’s compliance record.

Sources and disclaimer: Tax slabs from the FY 2083/84 budget as reported by Frontline Consult; SSF rates from the Contribution-based Social Security Act and Pioneer Law; eTDS timing from Law Alpine; vendor details from RigoHR, NepalHRM (via OnlineKhabar), Pace HRMS, PayTime (TrustRadius), ARKBO, Leave Balance and RealHRsoft. This article is general information, not tax or legal advice. Verify current rules with the Inland Revenue Department, the SSF or a registered auditor. wilson.com.np has no affiliate relationship with any vendor listed.