Nepal
Famous for the tallest mountains in the world, Nepal is also a hotspot for great remote talent. On this page, we’ll teach you how to hire remote talent in Nepal—without paying thousands in legal fees or spending months buried under legal paperwork.
Country snapshot
CURRENCY
Nepalese rupee
EMPLOYER TAXES
20%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Nepali
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Want to hire someone in Nepal? Excellent. But, no matter where you’re from, labor laws in Nepal are different from those in your home country (unless you’re from Nepal, of course). Read on to learn about your options, plus as the easiest way to make remote hires in Nepal.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Nepal than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Nepal.
Employer tax
Medical treatment
Accident and disability protection
Old age protection
Dependent family protection
Paid Time Off (PTO)
Annual leave days in Nepal are decided based on the number of days an employee works with a company.
At present, for every 20 days worked, an employee is eligible for one day of annual leave.
Each employee is eligible for one weekly holiday. This can be a Sunday, but if the employer cannot have all employees off on the same day, they may provide a break on a rotational basis.
All employees are eligible for a total of 13 days off for annual public holidays, including May Day. Women are given an extra day off for Women’s Labor Day holiday.
Public Holidays
There are 25 public holidays.
Sick Days
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
- Employees are entitled to paid sick leave of 12 days.
- If the employee has worked for the employer for less than one year, sick leave is granted in proportion to their employment period.
- Employees can accumulate sick leave up to a maximum of 45 days and must be paid their basic remuneration for accumulated sick leave over 45 days at the end of the year.
Maternity Leave
Pregnant or nursing mothers are allowed a total of 98 days off from work based on their maternity leave.
They are fully paid for up to 60 days.
Paternity Leave
The newly introduced Labor Act requires employers to provide 15 days of paid paternity leave.
Parental Leave
There are no provisions in the law regarding paternity leave.
Other Leave
Home leave - one day's leave for every 20 days' work.
Special leave - 30 days a year after having it approved in advance.
Marriage Leave
None.
Bereavement Leave
Employees are allowed up to 13 days of leave from work.
Termination Process
The employee can terminate the employment voluntarily by submitting a resignation letter.
The employment of the worker on work bound employment is terminated after the completion of the work provided in the employment agreement.
If the performance of the employee is found to be unsatisfactory or below the standard in the performance appraisal for three or more times, the employment of such worker may be terminated by the employer.
However, prior to terminating the employment the performance appraisal as per the Regulation under the Act or Bylaws should have been conduct.
Such employee should be provided an opportunity to submit explanation giving at least seven (7) days by the employer where ten (10) or more people work.
In case any employee is physically or mentally disabled or injured rendering him/her unable to work or requiring a long period for medical treatment effecting in the work of the entity, the employer, on recommendation of a medical practitioner may terminate his/her employment.
The employee or employer terminating the employment should provide a notice except in the situation of termination by dismissal.
The notice requirement is linked to the length of service which is as follows.
- If the period of employment is up to 4 weeks, then the notice period is of 1 day.
- If the period of employment is from 4 weeks to 1 year, then the notice period is of 7 days.
- If period of employment is more than 1 year, then the notice period is of 30 days.
Notice Period
The notice period in Nepal is:
The employee or employer terminating the employment should provide a notice except in the situation of termination by dismissal.
Severance Pay
The severance payment is of 30 days per year if an employee is not entitled to unemployment allowance under Social Security Act.
Probation Period
Probation period Under the Labor Act 2074, the probationary period is six months.
Working Hours
Nepalese rest on Saturday and work from Sunday to Friday.
Nepal generally has a 48 hour working week.
Overtime
If any worker or employee is engaged to work for more than eight hours in any day, or for more than 48 hours in any week, he shall be paid remuneration for such overtime work at the rate of 150 per cent of his usual remuneration.
%5B1%5D.avif)
Run your global workforce on autopilot with Thera
Book a demo to get started.