Your quick guide on talent and labor compliance norms in Nepal
Capital
Kathmandu
Currency
Nepalese Rupee (NPR)
Languages
Nepali, Hindi, English, Bengali
Payroll Frequency
Monthly
GDP per Capita
$1,491.60
Employer Tax
10%
Talent Overview
Nepal, located in South Asia, shares boundaries with India and China. It 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
The top local universities in Nepal are as follows:
Local: 1
World: 4634
Local: 2
World: 6038
Local: 3
World: 7780
Local: 4
World: 9199
Local: 5
World: 9246
Salary Data
The average monthly salary of some jobs in Nepal are:
| Job Title | Average Monthly Salary (NPR) | Average Monthly Salary (USD) |
| Financial Accountant | 57,800NPR | 438 USD |
| Software Engineer | 75,900 NPR | 575 USD |
| Data Analyst | 73,400 NPR | 556 USD |
| Sales Manager | 126,000 NPR | 954 USD |
| Project Manager | 87,800 NPR | 665 USD |
Talent Sourcing Tips
Mero Jobs, JobsNepal.com, RamroJobs.com
1,312,000
SOS Group, Sky Overseas Services, Blue Sky World Recruitment Services
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.
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.
The probationary period for employees in Nepal is up to six months.
| Date | Holiday | Type |
| 1 Jan | New Years day | Public Holiday |
| 22 Jan | Sonam Losar | Public Holiday |
| 30 Jan | Martyrs’ Day | Public Holiday |
| 21 Feb | Gyalpo Losar | Public Holiday |
| 8 Mar | International Women’s day | Public Holiday |
| 14 Apr | Nepali New year | Public Holiday |
| 22 Apr | Ramjan Edul Fikra | Public Holiday |
| 1 May | Labour day | Public Holiday |
| 5 May | Buddha Jayanti | Public Holiday |
| 7 Sep | Nijamati Sewa Diwas | Public Holiday |
| 19 Sep | Constitution day | Public Holiday |
| 23 Oct | Maha Navami | Public Holiday |
| 24 Oct | Vijaya Dashami | Public Holiday |
| 14 Nov | Laxmi Puja | Public Holiday |
| 25 Dec | Christmas day | Public Holiday |
| 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.
Minimum Wage
The minimum wage in Nepal is NPR 8,000 per month.
Overtime Pay
Pay should be 150% the regular pay for overtime work.
Bonus
There is no statutory law for 13th Month pay in Nepal.
Employee Benefits:
For every 20 days of work, an employee is entitled to 1 day of leave.
All employees who have worked in the company for 1 year are entitled to 15 days of half-paid sick leaves.
52 Days
Not mandatory. However, 15 days of paternity leave is customary.
Employees who have been in the company for a year are entitled to 13 days of mourning leaves.
30 days.
Taxes
| Rate | Tax Type |
| 10% | Provident Fund |
| Rate | Tax Type |
| 10% | Provident Fund |
| 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% | |
In Nepal, the standard rate of VAT is 13%.
Offboarding & Termination
The employment contract can be terminated by both the employer and the employee.
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.
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.
