Both employers and employees must provide notice before submitting a letter of employment termination, except in cases of dismissal for misconduct. The notice period correlates with the service period and ranges from 1 day (for employment up to 4 weeks) to 30 days (for more than a year of employment).
If any party fails to provide an appropriate notice period to the other party, they are liable to pay the remuneration for the period of such notice to the other party.
Foreign nationals hired for work in Nepal must request a work permit from the Department of Labour. Employers must apply for a work permit for their employees. It is also compulsory to produce a written employment agreement in a language understandable by foreign employees or in English. The validity period of a work permit is three years unless otherwise stated in the employment contract.
Employees who are provided diplomatic immunity, have written arrangements based on a treaty or agreement with the Government of Nepal, or are employed as technicians for 3 months or less to repair machinery or install new technology may proceed without a work permit. Employees also require a working visa from the Department of Immigration.
In Nepal, annual leave (called 'home leave') is granted at the rate of 1 day for 20 days of work, up to a maximum of 18 days per year. It is fully paid. However, as a general principle, leave is not seen as a right but as a privilege.
Annual leave accumulates up to a maximum of 90 days. Any excess accumulation is cashed in every year.
If an employee's contract is terminated or they die, the payment for unused leave is made to them or their family members.
In Nepal, regular working hours are 8 hours per day and 48 hours per week. Working hours of employees under 16 years of age cannot exceed 6 hours per day and 36 hours per week. Any work carried out in addition to regular working hours is considered overtime and must be paid at a rate of 150% of the employee's regular wages. The maximum overtime period may not exceed 4 hours per day and 24 hours per week.
Nepal's New Labour Act provides maternity leave of up to 14 weeks (~98 days), out of which 60 days are fully paid. Employees must take compulsory leave from 2 weeks before and until 6 weeks after delivery. This leave is also granted in case of stillbirth or miscarriage after 7 months of pregnancy. If recommended by the doctor, an employee can extend her maternity leave by a month.
The employer is responsible for paying the employee their regular remuneration for the first 60 days of maternity leave, while Nepal's Social Security Fund provides benefits for the remaining 38 days of maternity leave. The fund also provides NPR 7,500 (Nepalese rupee) per delivery up to 2 times.
In the case of the mother's death within 60 days of the child's birth, her husband or partner becomes entitled to the remuneration from the employer for the remaining period.
The minimum wage for employees in Nepal in 2025 is as follows:
Nepal's Labour Act requires salary payments at least once a month. For employees working for less than a month, payment must be made within 3 days of the completion of their work. For casual employees, payment must be made immediately after the completion of the work.
Get the full Country Snapshot with 25 sections of information about labor law in Bahrain.
Your request has been received. We'll be emailing you the country snapshot shortly.
Get the full Country Snapshot with 25 sections of information about labor law in Nepal.
Your request has been received. We'll be emailing you the country snapshot shortly.
