Nepal

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Nepal. See a sample of popular sections below.

Termination of Employment

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. 

Work Permits

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 three 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.

Paid Annual Leave

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. 

Working Hours

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.

Maternity Leave

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. 

Minimum Wage

The minimum wage for employees in Nepal was last set on August 27, 2023, and is currently as follows:

  • For tea estate employees - Monthly minimum wage of NPR 13,893 (Nepalese rupees), daily minimum wage of NPR 500, and hourly minimum wage of NPR 66
  • For non-tea plantation employees - Monthly minimum wage of NPR 17,300, daily minimum wage of NPR 668, and hourly minimum wage of NPR 89.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Nepal.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Nepal.