Hire in Nepal

Nepal, a country in Asia, lies along the southern slopes of the Himalayan mountain ranges. It is a young country, with more than three-fifths of the population under 30 years of age.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Nepal.

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A quick overview of Nepal

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Cost of living index

$ (131 of 139 countries)

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Currency

Nepalese Rupee (NPR, रू)

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Payroll frequency

Usually Monthly

Basic facts

Nepal, a country in Asia, lies along the southern slopes of the Himalayan mountain ranges. It is a young country, with more than three-fifths of the population under 30 years of age.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Nepal.

Capital

Kathmandu

Official language/s

Nepali/Gorkhali

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Population

30.89 million (2023 est.)

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VAT - standard rate

13%

The national holidays mentioned below are valid for the year 2025.

January 11Prithvi Jayanti
January 14Maghe Sankranti
January 30National Martyrs' Day
January 30Sonam Lhosar (Tamang New Year)Movable - The second new moon after the winter solstice
February 19Prajatantra Diwas
February 26Maha ShivaratriMovable - The 14th day of the Phalguna month according to the Hindu calendar
February 28Ghyalpo LhosarMovable - Tibetan New year
March 8International Women’s Day
March 13 - 14Holi / Phagu Purnima / Basanta UtsavMovable - The last full moon day of the Hindu calendar
March 31Ramjan Edul FikraMovable - As per Muslim calendar
April 6Ram NavamiMovable - The ninth day of the month of Chaitra of the Hindu calendar
April 14Nepali New YearMovable - The first day of Bikram Sambat, the official calendar of Nepal
April 24Loktantra Diwas (Democracy Day)
May 1Labor Day
May 12Buddha JayantiMovable - The full moon day of May
May 29Ganatantra Diwas/Republic DayMovable - The 15th of Jestha month
June 7Edul AajahaMovable - As per Islamic Lunar calendar
August 9Raksha Bandhan / Janai PurnimaMovable - The last day of Tihar
August 16Gaura ParbaMovable - As per Astrologers
August 16Shree Krishna JanmashtamiMovable - As per Hindu calendar
September 19Constitution Day
September 22GhatasthapanaMovable - The first day of Dashain month
September 29FulpatiMovable - The seventh day of Dashain month
September 30Maha AshtamiMovable - The eighth day of Dashain month
October 1Maha NavamiMovable - The ninth day of Dashain month
October 2Vijaya DashamiMovable - The tenth day of Dashain month
October 3EkadashiMovable
October 4DwadashiMovable
October 5Kojagrat PurnimaMovable
October 20Laxmi PujaMovable - The third day of Tihar
October 22Govardhan PujaMovable - The fourth day of Tihar
October 23Bhai TikaMovable - The fifth day of Tihar
November 5Guru Nanak JayantiMovable - Full moon of Kartik month - Annual holiday celebration for Sikhs
December 5Udhauli ParvaMovable - The full moon day of the eighth lunar month
December 25Christmas
December 30Tamu LosarMovable - 15th Poush of the Nepali calendar

The approximate time for sharing the contract with an employee in Nepal is 6 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Severance pay of one month’s pay for every year of service is paid only in cases of retrenchment by employers who employ at least 10 or more employees.
  • The employee must have been contributing to the social security fund for two years to become eligible for benefits provided for occupational diseases and other facilities.
  • A mandatory annual raise with a minimum limit of half a day’s remuneration based on the employee’s monthly basic remuneration is paid to any employee who has completed one year of service.
  • Every employee is entitled to festival expenses equal to the basic remuneration of one month. The employee can ask for the payment to be made at a specific time. In the absence of such a request, the festival expense should be provided at the time of the Dashain festival every year. If the employee has not completed one year of service on or before the day of payment of the festival expense, they are entitled to such expense in proportion to the period of service they have completed.

The employer should deposit a total of 31% amount in the Social Security Fund (11% of basic remuneration of the employee and adding 20% of basic remuneration) and deposit the same in the Social Security Fund.

Contributor Amount (Basic Salary)
Employee 11%
Employer 20%
Total 31%

Such amount should be arranged by the Fund as follows:

Category Employer Contribution Allocation
Medical treatment, health, and maternity security scheme (health insurance) 1%
Accident and disability security scheme (accident insurance) 1.40%
Dependent family security scheme 0.27%
Old Age Security Scheme (pension) 28.33%
Total 31%

Working Hours

The limit on working hours is eight hours per day and 48 hours every week. A rest break is to be provided with half an hour rest after five hours of continuous work.

 

Overtime

No employer can compel an employee to work more than the working hours set forth. However, if the nonperformance of work is likely to cause an adverse effect on the life, safety, and health of any person or a serious loss or damage to the employer, the concerned employee may be caused to work overtime.

The limit on overtime is set as not exceeding four hours a day and 24 hours a week. While employing any employee to work overtime, the employer should pay them remuneration at a rate of 1.5 times the basic remuneration receivable during regular hours of work.

 

Probation Period

While entering into an employment contract with an employee, the employer may so enter into the contract that they remain in a probation period for six months. The employer can terminate the employment contract with the employee if their work is not satisfactory during the probation period.

Termination Notice Period

 

Employment Condition Termination Notice Source/Other Details
Resignation by employee Deemed to be accepted after 15 days
Termination due to incompetence 7 days (as an opportunity for clarification).
  • Only employers with 10 or more employees
  • Where the employee terminates employment without giving notice to the employer, the employer may deduct the amount equal to the remuneration for the period.
Employment-initiated termination
  • Prior to at least 1 day in the case of employment for a maximum of 4 weeks,
  • Prior to at least 7 days, in the case of employment for a period of 4 weeks to 1 year; and
  • Prior to at least 30 days, in the case of employment for a period of more than 1 year.
Where the employer terminates the employment without giving the prescribed notice, the employer should pay the amount equal to the remuneration for the period.
Retrenchment 30 days before the date of retrenchment The notice should set out:

  • The reason requiring retrenchment;
  • The possible date for retrenchment; and
  • A probable number of employees to be retrenched to the Office and the authorized trade union.
Working Hours

The limit on working hours is eight hours per day and 48 hours every week. A rest break is to be provided with half an hour rest after five hours of continuous work.

 

Overtime

No employer can compel an employee to work more than the working hours set forth. However, if the nonperformance of work is likely to cause an adverse effect on the life, safety, and health of any person or a serious loss or damage to the employer, the concerned employee may be caused to work overtime.

The limit on overtime is set as not exceeding four hours a day and 24 hours a week. While employing any employee to work overtime, the employer should pay them remuneration at a rate of 1.5 times the basic remuneration receivable during regular hours of work.

 

Probation Period

While entering into an employment contract with an employee, the employer may so enter into the contract that they remain in a probation period for six months. The employer can terminate the employment contract with the employee if their work is not satisfactory during the probation period.

Termination Notice Period

 

Employment Condition Termination Notice Source/Other Details
Resignation by employee Deemed to be accepted after 15 days
Termination due to incompetence 7 days (as an opportunity for clarification).
  • Only employers with 10 or more employees
  • Where the employee terminates employment without giving notice to the employer, the employer may deduct the amount equal to the remuneration for the period.
Employment-initiated termination
  • Prior to at least 1 day in the case of employment for a maximum of 4 weeks,
  • Prior to at least 7 days, in the case of employment for a period of 4 weeks to 1 year; and
  • Prior to at least 30 days, in the case of employment for a period of more than 1 year.
Where the employer terminates the employment without giving the prescribed notice, the employer should pay the amount equal to the remuneration for the period.
Retrenchment 30 days before the date of retrenchment The notice should set out:

  • The reason requiring retrenchment;
  • The possible date for retrenchment; and
  • A probable number of employees to be retrenched to the Office and the authorized trade union.

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The employer should deposit a total of 31% amount in the Social Security Fund (11% of basic remuneration of the employee and adding 20% of basic remuneration) and deposit the same in the Social Security Fund.

Contributor Amount (Basic Salary)
Employee 11%
Employer 20%
Total 31%

Such amount should be arranged by the Fund as follows:

Category Employer Contribution Allocation
Medical treatment, health, and maternity security scheme (health insurance) 1%
Accident and disability security scheme (accident insurance) 1.40%
Dependent family security scheme 0.27%
Old Age Security Scheme (pension) 28.33%
Total 31%