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hire in Nepal

Nepal EOR & PEO

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 in Nepal

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.

Facts & Stats

EOR Platform

Hire in Nepal, and pay employees through our platform or app.

EOR Cost

Our Nepal EOR 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 EOR

stay compliant with Nepal labor laws

Employment Laws

Nepal employment contracts

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.

Fixed-term
Probationary period 6 months (max.)
Termination notice period 30 days notice (standard)
Severance 30 days’ salary
Indefinite
Probationary period 6 months (max.)
Termination notice period 30 days notice (standard)
Severance 30 days’ salary

Working hours in Nepal

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.

Hire compliantly in Nepal without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Nepal

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:

Nepal has a range of national public holidays that are celebrated annually. In 2024 these holidays are:
Date Holiday name
12 Jan Friday  Prithvi Jayanti
10 Feb Saturday Sonam Losar (Tamang New Year)
14 Feb Wednesday  Basant Panchami
9 Mar Saturday Maha Shivaratri
8 Mar Friday Nari Dibas
13 Apr Saturday Nepali New Year (Tentative Date)
11 Apr Thursday Ramjan Edul Fikra (Tentative Date)
24 Apr Wednesday National Democracy Day
1 May Wednesday Majdoor Divas
23 May Thursday Buddha Jayanti (Tentative Date)
28 May Tuesday Ganatantra Diwas (Republic Day)
17 Jun Monday Edul Aajaha (Tentative Date)
20 Aug Tuesday Gai Jatra
26 Aug Monday Gaura Parba, Shree Krishna Janamashtami (Tentative Date)
6 Sep Friday Hartalika Teej
19 Sep Thursday Constitution Day
3 Oct Thursday Ghatasthapana
10 Oct Thursday Phulpati (Dashain), Astami (Dashain)
11 Oct Friday Nawami (Dashain)
12 Oct Thursday Dashami (Dashain)
13 Oct Sunday Ekadashi (Dashain)
1 Nov Friday Laxmi Puja (Tihar)
2 Nov Saturday Gobhardan Pujan (Tihar)
3 Nov Sunday Bhai Tika (Tihar)
7 Nov Thursday Chhat Parwa
10 Nov Sunday Phalgunanda Jayanti
15 Nov Friday Guru Nanak Jayanti
3 Dec Tuesday International Day of Disabled Persons
15 Dec Sunday Udhauli Parva
25 Dec Wednesday Christmas Day
30 Dec Monday Tamu Lhosar

Vacation in Nepal

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.

Nepal's healthcare system

Sick leave in Nepal

Upon provision of a medical note, employees in Nepal can take up to 15 days of paid sick leave per year.

Maternity and paternity leave in Nepal

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.

Employee severance and terminations in Nepal

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.

Taxation in Nepal

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.

Health insurance in Nepal

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.

hassle-free Nepal compensation & benefits

Compensation & Benefits

Compensation laws in Nepal

The legal minimum wage in Nepal is NPR 15,000 per month as of 2024.

Benefit management in Nepal

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.

Hire in Nepal in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Nepal PEO” and “Nepal EOR” are used interchangeably.

An EOR 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 EOR 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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