Nepal

Nepal, nestled in the Himalayas between India and China, is renowned for its rich cultural heritage and breathtaking landscapes. As a developing nation, Nepal is making strides in economic growth and labor reforms, offering opportunities for businesses looking to expand in South Asia.
Contractor Management
Currency
Nepalese rupee (NPR)
Payroll Frequency
Weekly / bi-weekly / monthly
Employer Taxes
10%

Overview

Population
~31 million
Language
Nepali
Capital
Kathmandu
Currency
Nepalese rupee (NPR)
Country code
+977
Min wage
13,450 NPR/month
Working hours
8 hours per day
Weekdays
Sunday to Friday
Work hours per week
48 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
  • Not mandatory, but commonly practiced as a festival allowance
Avg employer tax

10%

Tax Breakdown

Employer Contributions:

Social Security Fund (SSF)
20% of basic salary
Gratuity
8.33% of basic salary
Leave Encashment
8.33% of basic salary

Employee Contributions:

Social Security Fund (SSF)
9% of basic salary

Personal Income Tax (PIT) - Progressive Rates:

Up to NPR 500,000
1% (social security tax)
NPR 500,001 – NPR 700,000
10%
NPR 700,001 – NPR 2,000,000
20%
Above NPR 2,000,000
30%

VAT

VAT

13%

Tax Calculation for Nepal
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NP
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Nepal typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions.

Registration with Authorities

Register the employee with the Social Security Fund (SSF) and obtain a Permanent Account Number (PAN) for tax purposes.

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and social contributions.
  • Provide payslips detailing earnings and deductions.

Employee Documentation

Collect personal identification, bank account details, and tax information.

Provide Clear Job Expectations and Training Opportunities

Clearly communicate job responsibilities and offer training to help new employees understand their roles and integrate into the company culture.

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements.

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Nepal
When drafting an employment contract for employees in Nepal, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Up to 12 days per year with full pay.
Maternity leave
  • 14 weeks (98 days) of paid leave; at least 60 days must be taken post-delivery.
Paternity leave
  • 15 days of paid leave.

Other Leaves:

  • Bereavement, marriage, and festival leaves are provided as per company policy or collective agreements.
Annual Leave
  • Employees are entitled to 1 day of paid leave for every 20 days worked, approximately 18 days per year.
9 Public holidays in Nepal

Note: Additional regional and religious holidays may apply.

1st
New Year's Day
8th
International Women's Day
14th
Nepali New Year
1st
Labor Day
24th
Buddha Jayanti
19th
Gaijatra
2nd
Dashain Festival
1st
Tihar Festival
25th
Christmas Day
  • 11 Jan: Prithvi Jayanti
  • 14 Jan: Maghe Sankranti
  • 30 Jan: Martyrs' Day
  • 2 Feb: Sonam Losar
  • 19 Feb: Prajatantra Diwas
  • 1 Mar: Maha Shivaratri
  • 3 Mar: Ghyalpo Losar
  • 8 Mar: International Women's Day
  • 10 Apr: Ram Navami
  • 14 Apr: Nepali New Year
  • 24 Apr: Loktantra Diwas
  • 1 May: Labor Day
  • 3 May: Ramjan Edul Fikra
  • 16 May: Buddha Jayanti
  • 29 May: Ganatantra Diwas
  • 10 Jul: Edul Aajaha
  • 12 Aug: Raksha Bandhan
  • 19 Aug: Gaura Parba
  • 19 Aug: Shree Krishna Janmashtami
  • 30 Aug: Hartalika Teej *
  • 31 Aug: Rishi Panchami *
  • 7 Sep: Nijamati Sewa Diwas **
  • 19 Sep: Constitution Day
  • 26 Sep: Ghatasthapana
  • 2 Oct: Fulpati
  • 3 Oct: Maha Ashtami
  • 4 Oct: Maha Navami
  • 5 Oct: Vijaya Dashami
  • 6 Oct: Ekadashi
  • 7 Oct: Dwadashi
  • 8 Oct: Kojagrat Purnima
  • 25 Oct: Laxmi Puja
  • 26 Oct: Govardhan Puja
  • 27 Oct: Bhai Tika
  • 30 Oct: Chhath Puja
  • 7 Dec: Udhauli Parva
  • 30 Dec: Tamu Losar

NB - * indicates observed by females only, ** indicates observed by civil employees only

Termination Process

Permissible Grounds

  • Mutual agreement
  • Resignation
  • Redundancy
  • Misconduct

Notice Period

  • One month for employees with less than one year of service.
  • Two months for employees with more than one year of service.

Severance Pay

Employees are entitled to severance pay based on the length of service, typically one month's salary for each year of service.

Probation Period

As mentioned under Workplace Overview.

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

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Grow Your Team in Nepal
with RemotePass

Nepal presents significant opportunities for global employers, with its strategic location and skilled workforce. However, navigating compliance with its labor laws, tax obligations, and statutory contributions can be complex. RemotePass simplifies this process by handling contracts, payroll, benefits, and compliance, allowing you to focus on growing your business.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Nepal.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Nepal

Nepal, nestled in the Himalayas between India and China, is renowned for its rich cultural heritage and breathtaking landscapes. As a developing nation, Nepal is making strides in economic growth and labor reforms, offering opportunities for businesses looking to expand in South Asia.
Contractor Management
العملة
Nepalese rupee (NPR)
تردد الرواتب
Weekly / bi-weekly / monthly
ضرائب أصحاب العمل
10%

نظرة عامة

التركيبة السكانية
~31 million
اللغة
Nepali
العاصمة
Kathmandu
العملة
Nepalese rupee (NPR)
رمز الاتصال الدولي
+977
الحد الأدنى للأجور
13,450 NPR/month
ساعات العمل
8 hours per day
أيام الأسبوع
Sunday to Friday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
  • Not mandatory, but commonly practiced as a festival allowance
متوسط ​​ضريبة صاحب العمل

10%

تحصيل الضرائب

Employer Contributions:

Social Security Fund (SSF)
20% of basic salary
Gratuity
8.33% of basic salary
Leave Encashment
8.33% of basic salary

Employee Contributions:

Social Security Fund (SSF)
9% of basic salary

Personal Income Tax (PIT) - Progressive Rates:

Up to NPR 500,000
1% (social security tax)
NPR 500,001 – NPR 700,000
10%
NPR 700,001 – NPR 2,000,000
20%
Above NPR 2,000,000
30%

ضريبة القيمة المضافة

ضريبة القيمة المضافة

13%

حساب الضريبة في Nepal
*
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NP
*
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Nepal عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions.

Registration with Authorities

Register the employee with the Social Security Fund (SSF) and obtain a Permanent Account Number (PAN) for tax purposes.

Payroll Setup

  • Ensure accurate calculation and withholding of taxes and social contributions.
  • Provide payslips detailing earnings and deductions.

Employee Documentation

Collect personal identification, bank account details, and tax information.

Provide Clear Job Expectations and Training Opportunities

Clearly communicate job responsibilities and offer training to help new employees understand their roles and integrate into the company culture.

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements.

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Nepal
عند إعداد عقد عمل للموظفين في Nepal يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Up to 12 days per year with full pay.
إجازة الأمومة
  • 14 weeks (98 days) of paid leave; at least 60 days must be taken post-delivery.
إجازة الأبوة
  • 15 days of paid leave.

Other Leaves:

  • Bereavement, marriage, and festival leaves are provided as per company policy or collective agreements.
Annual Leave
  • Employees are entitled to 1 day of paid leave for every 20 days worked, approximately 18 days per year.
9 عطلات رسمية في Nepal

Note: Additional regional and religious holidays may apply.

1st
New Year's Day
8th
International Women's Day
14th
Nepali New Year
1st
Labor Day
24th
Buddha Jayanti
19th
Gaijatra
2nd
Dashain Festival
1st
Tihar Festival
25th
Christmas Day
  • 11 Jan: Prithvi Jayanti
  • 14 Jan: Maghe Sankranti
  • 30 Jan: Martyrs' Day
  • 2 Feb: Sonam Losar
  • 19 Feb: Prajatantra Diwas
  • 1 Mar: Maha Shivaratri
  • 3 Mar: Ghyalpo Losar
  • 8 Mar: International Women's Day
  • 10 Apr: Ram Navami
  • 14 Apr: Nepali New Year
  • 24 Apr: Loktantra Diwas
  • 1 May: Labor Day
  • 3 May: Ramjan Edul Fikra
  • 16 May: Buddha Jayanti
  • 29 May: Ganatantra Diwas
  • 10 Jul: Edul Aajaha
  • 12 Aug: Raksha Bandhan
  • 19 Aug: Gaura Parba
  • 19 Aug: Shree Krishna Janmashtami
  • 30 Aug: Hartalika Teej *
  • 31 Aug: Rishi Panchami *
  • 7 Sep: Nijamati Sewa Diwas **
  • 19 Sep: Constitution Day
  • 26 Sep: Ghatasthapana
  • 2 Oct: Fulpati
  • 3 Oct: Maha Ashtami
  • 4 Oct: Maha Navami
  • 5 Oct: Vijaya Dashami
  • 6 Oct: Ekadashi
  • 7 Oct: Dwadashi
  • 8 Oct: Kojagrat Purnima
  • 25 Oct: Laxmi Puja
  • 26 Oct: Govardhan Puja
  • 27 Oct: Bhai Tika
  • 30 Oct: Chhath Puja
  • 7 Dec: Udhauli Parva
  • 30 Dec: Tamu Losar

NB - * indicates observed by females only, ** indicates observed by civil employees only

عملية إنهاء العقود

Permissible Grounds

  • Mutual agreement
  • Resignation
  • Redundancy
  • Misconduct

Notice Period

  • One month for employees with less than one year of service.
  • Two months for employees with more than one year of service.

Severance Pay

Employees are entitled to severance pay based on the length of service, typically one month's salary for each year of service.

Probation Period

As mentioned under Workplace Overview.

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Nepal
مع ريموت باس

Nepal presents significant opportunities for global employers, with its strategic location and skilled workforce. However, navigating compliance with its labor laws, tax obligations, and statutory contributions can be complex. RemotePass simplifies this process by handling contracts, payroll, benefits, and compliance, allowing you to focus on growing your business.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Nepal.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

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