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.

Capitale :
Kathmandu
Devise :
Nepalese Rupee (NPR, रू)
Langues parlées :
Nepali/Gorkhali
Nombre d'habitants :
29.12 million (2022 est.)
Salaire minimum :
NPR 15,000 monthly
Index du coût de la vie :
$ (131 of 139 countries)
Payroll Frequency :
Usually Monthly
Taux normal de la TVA :
13%
Croissance réelle du PIB :
-2.1% (2020 est.)

Statutory Holidays

The holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 30
National Martyrs' Day
February 2
Sonam Lhosar (Tamang New Year)
Movable - The second new moon after the winter solstice
February 19
Rashtriya Prajatantra Diwas
March 1
Maha Shivaratri
Movable - The 14th day of the Phalguna month according to the Hindu calendar
March 8
International Women’s Day
March 3
Ghyalpo Lhosar
Movable - Tibetan New year
March 18
Holi / Phagu Purnima / Basanta Utsav
Movable - The last full moon day of the Hindu calendar
April 10
Ram Navami
Movable - The ninth day of the month of Chaitra of the Hindu calendar
April 14
Nepali New Year
Movable - The first day of Bikram Sambat, the official calendar of Nepal
April 24
Loktantra Diwas (Democracy Day)
May 1
Labor Day
May 3
Ramjan Edul Fikra
Movable - As per Muslim calendar
May 16
Buddha Jayanti
Movable - The full moon day of May
May 29
Ganatantra Diwas/Republic Day
Movable - The 15th of Jestha month
July 10
Edul Aajaha
Movable - As per Islamic Lunar calendar
August 12
Raksha Bandhan / Janai Purnima
Movable - The last day of Tihar
August 19
Gaura Parba
Movable - As per Astrologers
August 19
Shree Krishna Janmashtami
Movable - As per Hindu calendar
September 19
Constitution Day
September 26
Ghatasthapana
Movable - The first day of Dashain month
October 2
Fulpati
Movable - The seventh day of Dashain month
October 3
Maha Ashtami
Movable - The eighth day of Dashain month
October 4
Maha Navami
Movable - The ninth day of Dashain month
October 5
Vijaya Dashami
Movable - The tenth day of Dashain month
October 25
Laxmi Puja
Movable - The third day of Tihar
October 26
Govardhan Puja
Movable - The fourth day of Tihar
October 27
Bhai Tika
Movable - The fifth day of Tihar
November 8
Guru Nanak Jayanti
Movable - Full moon of Kartik month - Annual holiday celebration for Sikhs
December 7
Udhauli Parva
Movable - The full moon day of the eighth lunar month
December 25
Christmas
December 30
Tamu Losar
Movable - 15th Poush of the Nepali calendar

Onboarding Time


When hiring new employees in Nepal through WorkMotion, the approximate onboarding time is only 6 business days. This time may be affected for events beyond our control at present.

 

Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee. 

 

For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.

What You Need To Know


  • 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.

Labor Conditions


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 ConditionTermination NoticeSource/Other Details
Resignation by employeeDeemed to be accepted after 15 days
Termination due to incompetence7 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.
Retrenchment30 days before the date of retrenchmentThe 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.

Leave / Time Off

Annual Leave

Every employee should get paid home leave at the rate of one day for every 20 days of the period they have worked. Employees who are employed in an educational institution or who get summer or winter leave should not get home leave. 

An employee is entitled to accumulate the home leave for up to 90 days. Where an employee is relieved of the service for any reason or dies, they or their family member as prescribed should get the lump sum amount to be set by the last basic remuneration being drawn by them for their accumulated home leave and sick leave.

Sick Leave

Employees get employer-paid sick leave of 12 days a year, provided that employees who work for a period of one year or lesser than one year should get the sick leave proportionately.

Employees who seek sick leave for more than three consecutive days should submit a certificate of their medical check-up by a recognized doctor. If the employee has to take leave because of sudden illness, they should inform the employer through the fastest means possible.

Parental Leave

Maternity Leave

Pregnant female employees should get maternity leave of a total of 14 weeks before or after delivery. They should compulsorily take leave from at least two weeks before the expected date of delivery to at least six weeks after the date of delivery. 

The employee who takes maternity leave should get full remuneration from the employer. Where a recognized medical doctor recommends that the female employee who has delivered a baby needs further rest for her or her baby’s health, the employer should approve unpaid leave of up to one month in addition to the maternity leave period or sanction such leave to be adjusted with other leave.

 

Paternity Leave

If a male employee’s wife is going to deliver a baby, he gets paid maternity care leave for a period of 15 days. This leave is paid by the employer.

Other Types of Paid Leave

Mourning Leave

Where an employee has to mourn according to their religion or because their spouse dies or a married female worker has to mourn the death of her father or mother or father-in-law or mother-in-law, such an employee gets a paid mourning leave of 13 days from the employer.

Statutory Benefits

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.

ContributorAmount (Basic Salary)
Employee11%
Employer20%
Total31%

Such amount should be arranged by the Fund as follows:

CategoryEmployer Contribution Allocation
Medical treatment, health, and maternity security scheme (health insurance)1%
Accident and disability security scheme (accident insurance)1.40%
Dependent family security scheme0.27%
Old Age Security Scheme (pension)28.33%
Total31%

Health Insurance

The employer should procure annual medical insurance of at least NPR 100,000 for each employee. The premium required for medical insurance should be borne by both the employer and the employee on a pro-rata basis. Any contributor making a contribution to the Social Security Fund for six months should get medical treatment and health facility as per this scheme. 

Other Insurances

Accident Insurance

 

The employer should procure accident insurance of at least NPR 700,000 covering all kinds of accidents for each employee. The entire premium required for the accidental insurance should be borne by the employer.

If the employee dies or gets completely incapacitated mentally or physically as a result of an accident, they or their legal heir under the prevailing law should get the entire amount of insurance as compensation. If the employee gets injured or incapacitated in an accident, they should get compensation on the basis of the percentage of incapacitation as prescribed in law.

Unemployment Insurance

 

There are no employer contributions to the unemployment programs.

Public Pension

Any employee who is in regular employment should get compulsory retirement after completing the age of 58 years.

The Social Security Fund should manage old age security scheme from 10% of the basic remuneration of the employees deposited in Social Security Fund for provident fund and 8.33% deposited for gratuity (sum total 18.33%) and 10% contribution amount to be made by the employee for the provident fund (18.33% + 10% = 28.33%). The combined contribution of employer and employee of 28.33% from the social security fund goes towards the old age security scheme.

Other Statutory Benefits

Transport for Women Employees

 

If employing female employees where the working hours begin after the sunset or before the sunrise, the employer has to make necessary arrangements for transportation to and from the workplace.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

 

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