Hire in Nepal without a local entity today
NEPAL EOR & PEO
DID YOU KNOW
- Nepal’s New Year is celebrated in April. The Nepali calendar, known as the Vikram Sambat, is approximately 56 years ahead of the Gregorian calendar.
- Napal is home to 8.9% of the world’s bird population, having more than 900 species.
- 8 of the 10 world’s highest mountains can be found in Nepal, including Mount Everest, measuring 8,848 meters.
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Nepal EOR SERVICES
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Working in Nepal
Employment Information
Financial Year Dates
- 16th July – 15th July
Minimum Wage
- Nepal’s current minimum wage is NPR 17,300 which includes a Minimum Basic Remuneration and a Dearness Allowance.
Standard working hours
- Nepal has a maximum working daily hours of 8, and no more than 48 hours in a week. Workers under 18 cannot be employed for more than 6 hours a day or 36 hours a week. Nepal’s time zone (UTC+5:45) can be advantageous for companies with operations in different time zones. Nepalese employees can often offer flexibility in working hours to accommodate the needs of global teams. English is widely spoken and taught in Nepal, especially among professionals. Nepalese employees have strong English skills, which facilitates smooth communication and integration into international teams.
Overtime
- The Nepal Labor Act 2074 (2017) limits overtime hours to a maximum of 4 hours a day, with no more than 24 hours of overtime worked in a week. Employees under the age of 18 are excluded from working any overtime hours.
Holiday Allowance
- Employees are entitled to 18 days’ paid annual leave per year.
Sick Leave
- Employees in Nepal are granted 12 days’ sick leave per year. After 3 consecutive days’ sick leave, a medical report must be provided.
Maternity & Paternity Leave
- Female workers receive a total of 14 weeks’ maternity leave. A compulsory minimum of 2 weeks must be taken before the employee’s due date. Employees receive 60 days’ maternity leave at full pay, the remaining is unpaid. Fathers receive 15 days’ fully paid paternity leave.
Public Holiday
- Maghe Sakranti (optional)
- Democracy Day (optional)
- Mahashivaratri (mandatory)
- Fagu Purnima (regional only mandatory for those who work in wither Kathmandu or Tarai areas)
- Nepali New Year (mandatory)
- Majdoor Divas (mandatory
- Buddha Jayanti / Udhauli Parba (optional)
- Shree Krishna Janamashtami (optional)
- Hartalike Teej (optional, only for women)
- Constitution Day (mandatory)
- Ghatasthapana (mandatory)
- Phalpati (Dashain) (mandatory)
- Astami (Dashain) (mandatory)
- Bijaya Dashami (Dashain) (mandatory)
- Dashami (Dashain) (mandatory)
- Dashain holiday (mandatory)
- Laxmi Puja (Tihar) (mandatory)
- Tihar Holiday (mandatory
- Bhai Tika (Tihar Holiday) (mandatory)
- Tihar Holiday (optional)
- Chhat Parwa (mandatory)
- Christmas holiday (mandatory)
Social Contributions
- Nepal’s Social Security fund (SSF) rules require employees to contribute 11% of their basic pay and employers to contribute 20% to the fund each month. The benefits of the SSF are medicine, health and maternity protection; accident and disability safety; dependent family protection; and old age protection. Despite the scheme being in place for a number of years, only 2% of companies are enrolled in the SSF. Many employees are not willing to join the scheme because they think the benefits they are receiving from their companies are better than those offered by the scheme.
Income Tax
Individual Resident | |
Income Level (NPR) | Tax Rate FY 2081/82 (2024/25) |
First 500,000 | 1% |
Next 200,000 | 10% |
Next 300,000 | 20% |
Next 1,000,000 | 30% |
Next 3,000,000 | 36% |
Above 5,000,000 | 39% |
Couple Residents | |
Income Level (NPR) | Tax Rate FY 2081/82 (2024/25) |
First 600,000 | 1% |
Next 200,000 | 10% |
Next 300,000 | 20% |
Next 900,000 | 30% |
Next 3,000,000 | 36% |
Above 5,000,000 | 39% |
* Does not apply to Proprietorship Income, Pension Income, Income from Contribution based Pension Fund, and the employment income of the person depositing the amount in the Social Security Fund (SSF)
Non-Resident Individual | |
Nature if Transaction | FY 2081/82 (2024/25) |
Earned income from normal transactions | 25% flat rate |
Income from providing shipping, air transport or telecommunication services, postage, satellite, optical fiber project | 5% |
Income earned providing Shipping, air transport of telecommunication services through the territory of Nepal | 2% |
Repatriation by foreign permanent establishment | 5% |
Health Care
- Health care services in Nepal are provided by both Public and Private sectors. With 215 public and 2,551 private hospitals recorded in 2023, many residents have limited access to basic healthcare as a result of high costs. Less rural areas also have limited access to healthcare.
Visas
- Nepal’s working visa allows the holder to legally work in the country for a determined amount of time. There is only one type of working visa, and it is generally obtained after the holder enters the country on a tourist visa. The applicant will apply for their work visa once they have agreed the following information with their prospective employer; specific location, base monthly rate, and if wanting a single re-entry or multiple re-entry visa.
Cultural Information
Nepal’s staple dish Dal Bhat, a lentil soup served with vegetables and rice, reflects the country’s diverse cultural influences from India, China and Tibet. The Nepalese are known to eat this twice a day.
Most Nepalis are either Hindus or Buddhists; these two religions have co-existed in harmony for centuries. In 2006, the Government declared Nepal a secular country. Other religions practiced in Nepal include Islam, Christianity, Jainism, Sikhism, Bon, Ancestor Worship and Animism.
Bijaya Dashami is a 10-day festival celebrated in October. This festival is one of the grandest, longest and most auspicious celebrated by the whole country. Dashain holds as an extremely significate festival which also emphasized the importance of family reunion which is helpful to ease social contradictions. All the government offices, educational sectors and other public sectors will be closed during this festival period.
Impact of Covid-19
The Covid-19 pandemic affected the life expectancy of Nepali people, reducing life expectancy by 3 years between 2019 and 2021. The decline is almost double the global average which was 1.6 years.