Expand your global workforce in Nepal
Your guide to the employment landscape, working customs and local labor laws in Nepal
Capital
Kathmandu
Currency
Nepalese Rupee (NPR)
Languages
Nepali, Hindi, English, Bengali
GDP per Capita
$1,491.60
Employer Tax
10%
Payroll Frequency
Monthly
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
Nepal
Top local universities in Nepal
Kathmandu University
Ranking
Local: 1
World: 4634
Tribhuvan University
Ranking
Local: 2
World: 6038
Pokhara University
Ranking
Local: 3
World: 7780
Purbanchal University
Ranking
Local: 4
World: 9199
Agriculture and Forestry University
Ranking
Local: 5
World: 9246
Top Local Job Boards:
Mero Jobs, JobsNepal.com, RamroJobs.com
Number of LinkedIn users:
1,312,000
Top Recruitment Agencies:
SOS Group, Sky Overseas Services, Blue Sky World Recruitment Services
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
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 |
Employ in Nepal
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 |
| January 11 | Prithvi Jayanti | National Holiday |
| January 14 | Maghe Sankranti | National Holiday |
| January 30 | Martyrs’ Day | National Holiday |
| February 19 | Prajatantra Diwas | National Holiday |
| February 26 | Maha Shivaratri | National Holiday |
| March 8 | International Women’s Day | National Holiday |
| March 29 | Ghode Jatra | Local Holiday |
| April 6 | Ram Navami | National Holiday |
| April 14 | Nepali New Year | National Holiday |
| April 24 | Loktantra Diwas | National Holiday |
| May 1 | Labour Day | National Holiday |
| May 12 | Buddha Jayanti | National Holiday |
| May 29 | Ganatantra Diwas (Republic Day) | National Holiday |
| August 9 | Raksha Bandhan | National Holiday |
| August 10 | Gai Jatra | National Holiday |
| August 16 | Shree Krishna Janmashtami | National Holiday |
| September 6 | Indra Jatra | Local Holiday |
| September 7 | Nijamati Sewa Diwas | Local Holiday |
| September 19 | Constitution Day | National Holiday |
| September 22 | Ghatasthapana | National Holiday |
| September 29 | Fulpati | National Holiday |
| September 30 | Maha Ashtami | National Holiday |
| October 1 | Maha Navami | National Holiday |
| October 2 | Vijaya Dashami | National Holiday |
| October 3 | Ekadashi | National Holiday |
| October 4 | Dwadashi | National Holiday |
| October 5 | Kojagrat Purnima | National Holiday |
| October 20 | Laxmi Puja | National Holiday |
| October 22 | Govardhan Puja | National Holiday |
| October 23 | Bhai Tika | National Holiday |
| October 27 | Chhath Puja | National Holiday |
Employee Leaves:
| Type of Leave | Duration | Mandatory |
| Annual Leave | 18 days | Yes |
| Sick Leave | 12 days | As per employment contract |
| Maternity Leave | 14 weeks | Yes |
Leave Compliance
Payroll in Nepal
Payroll cycle
The payroll cycle in Nepal is monthly. However, it can be weekly or bi-weekly based on the mutual agreement.
Minimum wage
There are two minimum wage classifications—one for tea estate workers and another for all other employees. The general minimum wage applies to all workers, regardless of their employment status or length of service.
Read more
Overtime pay
Pay should be 150% the regular pay for overtime work.
How taxes work
Employer Payroll Tax:
| Scheme | Contributions |
| Employee Provident Fund (Private Sector) | 10% |
| Employee Provident Fund (Public Sector) | 6% |
Employee Payroll Tax:
| Scheme | Contributions |
| Employee Provident Fund (Private Sector) | 10% |
| Employee Provident Fund (Public Sector) | 6% |
Employee Income Tax:
| Annual Taxable Income
(NPR, Nepalese Rupee) |
Tax Rate (%) |
| 0 to 500,000 | 1% |
| 500,000 to 700,000 | 10% |
| 700,000 to 1,000,000 | 20% |
| 1,000,000 to 2,000,000 | 30% |
| 2,000,000 to 5,000,000 | 36% |
| Above 5,000,000 | 39% |
The current income tax rates for resident individuals filing joint taxes as a couple are as follows:
| Annual Taxable Income
(Nepalese Rupee, NPR) |
Tax Rate (%) |
| 0 to 600,000 | 1% |
| 600,000 to 800,000 | 10% |
| 800,000 to 1,100,000 | 20% |
| 1,100,000 to 2,000,000 | 30% |
| 2,000,000 to 5,000,000 | 36% |
| Above 5,000,000 | 39% |
VAT:
In Nepal, the standard rate of VAT is 13%.
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
Employee offboarding
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.
Your employment toolkit for Nepal
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Overtime Pay
Minimum Wage
- For tea estate employees – Monthly minimum wage of NPR 13,893 (Nepalese rupees), daily minimum wage of NPR 500, and hourly minimum wage of NPR 66
- For non-tea plantation employees – Monthly minimum wage of NPR 17,300, daily minimum wage of NPR 668, and hourly minimum wage of NPR 89.
Overtime Pay
Visa and Immigration