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SALARY PAYMENT IN Nepalese Rupee (NPR)
CONTRACT LANGUAGE Nepali / English
PAYROLL TAX 20%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
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Hire and pay talents
with Horizons in
180+ countries
Horizons ensures day-to-day guidance to help your business navigate Nepal labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Nepal ), and that taxes are withheld as required.
As the Nepal Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Nepal Tax Office.
Partnering with our Nepal PEO is the quickest and most cost-effective way to enter the Nepal market.
| PEO Platform Hire in Nepal, and pay employees through our platform or app. | PEO Cost Our Nepal PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Nepal, hire in as little as 24 hours. |
| Contracts We draft labor contracts compliant with Nepal labor law. | Local Benefits We administer all mandatory benefits and contributions in Nepal. | 180+ Countries It doesn’t stop with Nepal — we are an international PEO |
Employers in Nepal should always provide a written employment contract for every employee. Employment contracts should contain any important details such as working hours, entitlements, salary/wage, and more. They should also be written in Nepali and use the local currency of the Nepalese rupee.
| Probationary period | 6 months (max.) |
| Termination notice period | 30 days notice (standard) |
| Severance | 30 days’ salary |
| Probationary period | 6 months (max.) |
| Termination notice period | 30 days notice (standard) |
| Severance | 30 days’ salary |
The standard working week in Nepal is 48 hours spread across six days, with Saturdays commonly given as a rest day. Overtime rates are generally 1.5x normal pay and workers should never work more than 24 hours of overtime in a single week.
Quick, compliant hiring in 24 hours—no subsidiary required.
Nepal celebrates a number of major public holidays throughout the year. The following are commonly celebrated and most employees receive them as leave from work, but there may be several other days in some areas:
| Date | Holiday name |
|---|---|
| 11 Jan Wednesday | Prithvi Jayanti |
| 22 Jan Sunday | Sonam Losar (Tamang New Year) |
| 26 Jan Thursday | Basant Panchami |
| 18 Feb Saturday | Maha Shivaratri |
| 19 Feb Sunday | National Democracy Day |
| 8 Mar Wednesday | Nari Dibas |
| 14 Apr Friday | Nepali New Year (Tentative Date) |
| 22 Apr Saturday | Ramjan Edul Fikra (Tentative Date) |
| 1 May Monday | Majdoor Divas |
| 5 May Friday | Buddha Jayanti (Tentative Date) |
| 29 May Monday | Ganatantra Diwas (Republic Day) |
| 29 Jun Thursday | Edul Aajaha (Tentative Date) |
| 30 Aug Wednesday | Janai Purnima |
| 1 Sep Friday | Gai Jatra |
| 6 Sep Wednesday | Gaura Parba, Shree Krishna Janamashtami (Tentative Date) |
| 18 Sep Monday | Hartalika Teej |
| 19 Sep Tuesday | Constitution Day |
| 15 Oct Sunday | Ghatasthapana |
| 21 Oct Saturday | Phulpati (Dashain) |
| 22 Oct Sunday | Astami (Dashain) |
| 23 Oct Monday | Nawami (Dashain) |
| 24 Oct Tuesday | Dashami (Dashain) |
| 25 Oct Wednesday | Ekadashi (Dashain) |
| 11 Nov Saturday | Phalgunanda Jayanti |
| 12 Nov Sunday | Laxmi Puja (Tihar) |
| 14 Nov Tuesday | Gobhardan Pujan (Tihar) |
| 15 Nov Wednesday | Bhai Tika (Tihar) |
| 19 Nov Sunday | Chhat Parwa |
| 27 Nov Monday | Guru Nanak Jayanti |
| 3 Dec Sunday | International Day of Disabled Persons |
| 25 Dec Monday | Christmas Day |
| 26 Dec Tuesday | Udhauli Parva |
| 30 Dec Saturday | Tamu Lhosar |
Employees in Nepal are entitled to one day of paid vacation leave for every 20 days of work they complete. Additionally, workers can take up to 13 days of compassionate leave for the death of a loved one.
Upon provision of a medical note, employees in Nepal can take up to 15 days of paid sick leave per year.
Female employees in Nepal are entitled to 98 days of paid maternity leave. Of this allowance, 60 days are compensated at full pay. Male employees can take up to 15 days of paid paternity leave.
The usual notice period for employee termination in Nepal is 30 days, as long as the worker has been with their employer for more than one year. Additionally, severance payments of one month of normal salary are common.
Probation periods are limited to six months.
In Nepal, both employers and employees must contribute to the country’s provident fund, paying 10% of salaries into this fund.
Income tax in Nepal is progressive, and rates of between 1% and 36% apply depending on income level.
The corporate tax rate in Nepal is 25% for most companies.
Nepal has state-funded public healthcare, so employers do not need to provide private medical insurance. However, some may choose to, particularly for employees in senior roles.
The legal minimum wage in Nepal is set at 13,450 rupees per month as of 2019.
Organizing a Nepal benefits system for your employees can be a long and difficult process as a foreign company. You should be prepared to spend a significant amount of time setting up the system and keeping it compliant, which can cause delays in the hiring process.
Horizons can help to significantly simplify this step of your Nepal expansion by providing benefit management outsourcing. Our team can advise you and handle the setup of your benefit scheme, enabling you to focus on expanding your organization in Nepal.
With Horizons, you get quick service, transparent pricing, and expert support.
A Nepal PEO and a Nepal EOR are two types of companies which specialize in providing human resources services to businesses in Nepal.
The main difference between a Nepal PEO and a Nepal EOR is in the scope of their services.
Nepal PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Nepal PEO is essentially outsourcing your HR duties in Nepal.
Nepal EORs actually take over as the legal employer of your employees based abroad. Nepal EORs become responsible for labor compliance for your employees in Nepal.
At Horizons, we offer both PEO and EOR services in Nepal. Get in touch now and let us know what service you are seeking.
A PEO in Nepal can feasibly hire both local and foreign nationals to work in Nepal.
However, the ability of Horizons to sponsor your foreign national employee in Nepal may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Nepal PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Nepal.
It is possible to get a work visa in Nepal. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Nepal are limited, however—get started today to secure your employees’ visa spot.
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