Hiring guide in Nepal

Have the latest guide for hiring in Nepal through Native Teams

What should I know about hiring in Nepal?

Hiring talents from Nepal can bring a vast of new opportunities for your business, but it also imposes many challenges. Before making your hire in the country, it’s essential to assess legal aspects such as labour laws, employment contracts, payroll procedures, and tax requirements.

Besides staying compliant with labour laws, it’s also important to be aware of cultural norms and practices. Nepal’s business culture emphasises respect and hierarchy, so it’s important to maintain professional relationships and offer competitive compensation packages.

Why is Nepal a good choice for finding remote employees?

Compared to some Western countries, Nepal is very cost-effective when it comes to employing a workforce. Not only does this mean lower employee costs for businesses, but it also allows them to offer competitive compensation packages without significant cost increases.

Nepal is also considered one of the countries with a constantly growing pool of skilled and educated workers. Many Nepali professionals hold degrees from reputable universities in fields such as IT, engineering and design. Combined with Nepal’s strong work ethic and loyalty values, hiring in Nepal can open many opportunities for businesses that hire remote workers.

Finally, to promote the country’s development, Nepal’s government takes initiatives to support the growth of IT and digital sectors. As such, it’s a favourable environment for foreign startups that want to expand and hire a remote workforce.

How can Native Teams help you hire in Nepal?

Native Teams can assist you in staying compliant with Nepali labour laws while expanding your business there. Our EOR and PEO solutions will help you navigate the complexities of Nepali employment regulations and the unique business and cultural landscapes.

 Hire your first Nepali employee with Native Teams.

Legal requirements for hiring in Nepal

Minimum wage

The minimum monthly wage in Nepal is NPR 15,000.

Contributions & taxes

Employer tax

The employer tax in Nepal is 10%.

Corporate tax

The corporate tax in Nepal is 25% for the majority of business sectors.

Employee tax

The employee tax in Nepal is 10%.

Income tax

Individual income tax in Nepal is submitted progressively:

  • NPR 500.000 and below – 1%
  • From NPR 500.001 to NPR 700.000 – 10%
  • From NPR 700.001 to NPR 1.000.000 – 20%
  • From NPR 1.000.001 to NPR 2.000.000 – 30%
  • From NPR 2.000.001 to NPR 5.000.000 – 36%
  • NPR 5.000.001 and above – 39%

To calculate the salary and taxes in Nepal please click here.

Payroll cycle

The payroll cycle in Nepal runs monthly.

Is there a 13th salary in Nepal?

According to the statutory requirements, employers are not obligated to pay a 13th salary.

Labor rules

Probation period

The maximum probation period in Nepal is 6 months.

Notice period 

The standard notice period in Nepal is 1 month, for employees with service of at least 1 year.

Severance period

The statutory severance pay in Nepal should equal the employee’s 30-day salary.

Working hours

The standard workweek is 8 hours per day, 6 days per week – from Sunday to Friday. Saturday is typically a rest day in Nepal.

Leave and benefits

Public holidays

Nepal celebrates a variety of public holidays, including regional and religious holidays:

  1. Prithvi Jayanti
  2. Maghe Sankranti
  3. Martyrs’ Day
  4. Sonam Losar
  5. Prajatantra Diwas
  6. Maha Shivaratri
  7. Ghyalpo Losar
  8. International Women’s Day
  9. Ram Navami
  10. Nepali New Year
  11. Loktantra Diwas
  12. Labour Day
  13. Ramjan Edul Fikra
  14. Buddha Jayanti
  15. Ganatantra Diwas
  16. Edul Aajaha
  17. Raksha Bandhan
  18. Gaura Parba
  19. Shree Krishna Janmashtami
  20. Hartalika Teej 
  21. Rishi Panchami
  22. Nijamati Sewa Diwas 
  23. Constitution Day
  24. Ghatasthapana
  25. Fulpati
  26. Maha Ashtami
  27. Maha Navami
  28. Vijaya Dashami
  29. Ekadashi
  30. Dwadashi
  31. Kojagrat Purnima
  32. Laxmi Puja
  33. Govardhan Puja
  34. Bhai Tika
  35. Chhath Puja
  36. Udhauli Parva
  37. Tamu Losar

Sick leave

Employees in Nepal are entitled to a fully paid sick leave of 12 days per year.

Maternity leave & Paternity leave

Female employees are entitled to a maternity leave of 98 days, of which 60 are fully paid. Male employees in Nepal are entitled to 15 days of fully paid paternity leave.

Other leave

Bereavement leave

Employees with over 1 year of service in a specific establishment are entitled to 13 days of fully paid bereavement leave.

What are the minimum vacation days?

Nepali employees are entitled to 1 day of paid annual leave for every 20 days of service or 18 days per year.


Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us, and we will send a comparison of insurance packages and prices.*


Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Nepal, upload the documents from our onboarding list (relocation to log in/pricing). 

Why use Native Teams for hiring in Nepal?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

  • No paperwork: We will handle all the necessary paperwork for you.
  • Save on taxes: We help you handle your taxes.
  • No company set up: You can expand your business using our company entitles.
  • Online onboarding: We’re here to ensure your onboarding process is trouble-free.
  • No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
  • Increase your profit: We assist you in growing your business and maximizing your profits.
  • Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
  • Local support: We can assist you in understanding and complying with the relevant local laws.
Book a demo

*Note: The provided information was accurate at the time of writing.

Native Teams

Download our hiring guide

Have the latest guide for payroll and benefits

Native Teams | Download hiring guide Download FREE guide

Want to learn more about our solutions?

Contact us, we speak your language.

Talk to us
Native Teams | Learn more about our solutions