More information about average salaries in Nepal can be found here.
Employers are taxed at a flat rate of 10% of the employees salaries to contribute towards the country’s provident fund.
Employees are taxed 10% as a contribution towards the country’s provident fund.
The minimum wage is approximately NPR 123 hourly which sums up to NPR 925 per day.
The payroll cycle follows from contract to contract but customarily salaries are paid out monthly.
13th month salary
There is no obligatory rule but it is customary to pay the 13th month salary as bonus.
The general work hours are 8 hrs a day and 40 hrs a week which may stretch to 48 hrs as well. Overtime work hours are restricted at 4 hrs a day and 20 hrs a week
In Nepal, overtime is usually paid at 1.5 times the normal wages.
The list of public holidays in Nepal can be found here.
All employees are entitled to 1 day of paid annual leave for every 20 working days of employment.
If the employment contract is for a period of 1 year, the employee is entitled to a maximum of 15 days of half paid sick leave. If the term of employment contract is less than a year, the no. of sick leaves are calculated on a pro-rata basis.
For female employees, they are entitled to a continuous leave of 52 days with full pay which may start before or after the delivery of the child. Such a leave can only be obtained two times during the period of service in the same organisation if there are no mishappenings.
Paternity leaves vary from employer to employer. The usual paternity leave period is 15 days with full pay.
An employment contract may be terminated on account of voluntary termination by either employer or employee, retirement, expiration of contract or termination by dismissal.
The employers should follow the following notice period in the event of a termination of contract for reason apart from termination by dismissal.
Employees are eligible to severance pay from the first day of employment at a fixed rate of 8.33% of the basic remuneration.
The employee may be under probation for a maximum period of 6 months.