Talent Wiki – Nepal

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:

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

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

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

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 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

Employee Leaves:

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

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

Taxes

Employer Payroll Tax:

Rate Tax Type
10% Provident Fund

Employee Payroll Tax:

Rate Tax Type
10% Provident Fund

Employee Income Tax:

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%

VAT:

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. 

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration