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Asia

Nepal

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Employer of Record (EOR) in Nepal

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Nepal Introduction

Nepal is a landlocked country in south Asia, bordered by India and Tibet. The country has a diverse geography that includes fertile plains, subalpine forested hills, and 8 of the world's 10 tallest mountains (including the highest point on Earth, Mount Everest). Nepal is considered a multi-ethnic, multi-lingual, multi-religious, and multi-cultural state.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees in Nepal can take 98 days of maternity leave (the first 60 of which are fully paid). Fathers can receive 15 days of paternity leave at full pay.

Sick Leave

Employees are entitled to 12 days of paid sick leave each year (prorated to how long they have worked at the company during the first year). Employees can carry over their sick leave into the next year for a maximum of 45 days.

Paid Leave

Nepal has 13 public holidays, and employees are given 1 day of paid time off after every 20 days of work.

Wage Requirements and Working Hours

The minimum wage in Nepal is NPR 15,000 per month, with a standard workweek of 48 hours per week at 8 hours per day. Overtime is paid at 150% of the salary, and cannot exceed 4 hours per day.

Termination Process

Process

Employers who want to terminate an employee need to do so with just cause, and also give the employee an opportunity to present their case against the dismissal.

Notice Period

The average notice period is 30 days, but no notice is required in cases of misconduct.

Severance Pay

If an employee is not eligible for unemployment benefits, they are due a severance usually equal to 1 month of wages for each year of employment at the company.

Additional Information

N/A

OVERVIEW
Language(s):
Nepali
Currency:
Nepalese Rupee (NPR)
Capital City:
Kathmandu
Population:
30.2 Million
Cost of Living Rank:
127th
VAT (Valued Added Tax):
13%
Employer TaxES
10%
(estimated)

★  10% - Provident Fund

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Nepal

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Nepal get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Nepal are paid on time in Nepalese Rupee (NPR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Nepal, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.