Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Nepal

Your quick guide on talent and labor compliance norms in Nepal
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Capital
Kathmandu
Currency
Nepalese Rupee (NPR)
Languages
Nepali, Hindi, English, Bengali
Payroll Frequency
Monthly
GDP per Capita
$1,203.09
Employer Tax
10%

Supplementary Guide for Employment and Expansion in Nepal

Talent Overview

Nepal, located in South Asia, shares boundaries with India and China. Itl has a traditional economic system and a majority of the population engages in subsistence agriculture. This particular economic sector has employed about 65% of its working population. Despite the country’s challenges with poverty and reliance on remittances, Nepal has managed to strive towards economic growth since the 1950s through a series of five-year plans. 

Major Economic Hubs:

Kathmandu, Pokhara, Lalitpur

Skills in Demand:

Digital Literacy, Public Speaking, Web/App Development, Design

Local Universities

Kathmandu University

RANKING

Nepal : 2

World : 5655

Tribhuvan University

RANKING

Nepal : 1

World : 6679

Pokhara University

RANKING

Nepal : 3

World : 7409

Purbanchal University

RANKING

Nepal : 4

World : 9123

Agriculture and Forestry University

RANKING

Nepal : 5

World : 9941

Salary Data

Job Title Average Monthly Salary (NPR) Average Monthly Salary (USD)
Financial Accountant 58,000 NPR 452.83 USD
Software Engineer 75,900 NPR 592.58 USD
Data Analyst 73,400 NPR 573.06 USD
Sales Manager 126,000 NPR 983.73 USD
Project Manager 87,800 NPR 685.49 USD

Talent Sourcing Tips

Top Local Job Boards

Mero Jobs, JobsNepal.com, RamroJobs.com

Number of LinkedIn users

873,200

Top Recruitment Agencies

SOS Group, Sky Overseas Services, Blue Sky World Recruitment Services

Employing in Nepal

In order to onboard an individual from Nepal, the employer must know about the labor laws, statutory benefits, leaves, and allowances. Below listed are the key points an employer must keep in mind while seeking employees in Nepal.

Employee Contract:

The Employment contract must be drafted in a language that can be understood by the Employee or in English. The employer must mention all the descriptions related to the employment, such as work time, leaves, bonuses, and the role of the individual.

Probation Period

The probationary period for employees in Nepal is up to six months.

Public and Provincial Holidays:

Date Name Type
15th January Maghe Sankranti Public Holiday
1st March Maha Shivaratri Public Holiday
8th March Nari Dibas Public Holiday
1st May Majdoor Divas Public Holiday
16th May Buddha Jayanti Public Holiday
29th May Ganatantra Diwas (Republic Day) Public Holiday
11th August Janai Purnima Public Holiday
19th September Constitution Day Public Holiday
2nd October Phulpati (Dashain) Public Holiday
3rd October Ashtami (Dashain) Public Holiday
4th October Nawami (Dashain) Public Holiday
5th October Dashami (Dashain) Public Holiday
20th October Ekadashi (Dashain) Public Holiday
24th October Laxmi Puja (Tihar) Public Holiday
26th October Gobhardan Pujan (Tihar) Public Holiday
27th October Bhai Tika (Tihar) Public Holiday
30th October Chhat Parwa Public Holiday

Employee Leaves

Type of Leave Duration Mandatory
Annual Leave 18 days Yes
Sick Leave 12 days As per employment contract
Maternity Leave 12 weeks Yes

Payroll

Payroll Cycle

The payroll cycle in Nepal is monthly. However, it can be weekly or bi-weekly based on the mutual agreement.

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Minimum Wage

The minimum wage in Nepal is NPR 8,000 per month.

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Overtime Pay

Pay should be 150% the regular pay for overtime work.

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Health Examination Clause

Bonus

13th Month Pay:

There is no statutory law for 13th Month pay in Nepal.

Employee Benefits:

Statutory Leave:

For every 20 days of work, an employee is entitled to 1 day of leave.

Sick Leave:

All employees who have worked in the company for 1 year are entitled to 15 days of half-paid sick leaves.

Maternity Leave:

52 Days

Paternity Leave:

Not mandatory. However, 15 days of paternity leave is customary.

Mourning Leave:

Employees who have been in the company for a year are entitled to 13 days of mourning leaves.

Special Leave:

30 days.

Other Benefits:

  • ~Food allowance
  • ~Transportation allowance
  • ~Accidental insurance
  • ~Health insurance
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Taxes

Employer Payroll Tax:

Rate Tax Type
10% Provident Fund

Employee Payroll Tax:

Rate Tax Type
10% Provident Fund

Employee Income Tax:

For Individuals For Couples
Annual Taxable Income Tax Rate Annual Taxable Income Tax Rate
Upto 4,00,000 1% Upto 4,50,000 1%
Next 1,00,000 10% Next 1,00,000 10%
Next 2,00,000 20% Next 2,00,000 20%
Next 13,00,000 30% Next 12,50,000 30%
Above 20,00,000 36% Above 20,00,000 36%

VAT:

In Nepal, the standard rate of VAT is 13%.

Offboarding & Termination

Termination Process

The employment contract can be terminated by both the employer and the employee.

Notice Period

The notice period in Nepal is dependent on a mutual discussion between the employer and the employee, and should be in accordance with the labor laws of Nepal.

Severance Pay

Employees are eligible for severance pay from the first day of employment at a fixed rate of 8.33% of the basic remuneration.

Visa and Immigration

All foreign workers, wherever they may be originally located, must first secure a work permit with the Department of Labour and Work Agreement to work in Nepal. After which, they can apply for a work visa to legally stay in the country for employment purposes.

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