Nepal

Employer of Record in Nepal

Only 399 EUR per employee per month

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Nepal . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Nepal.

Employer of Record people
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Currency
Nepalese Rupee
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Capital
Kathmandu
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Region
Asia
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Language
Nepali
Hire remote employees
Population
29136808
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GDP
$24.88 billion
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GDP growth
7.91%
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Ease of doing business
63.2
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World GDP share
0.03%

1. Grow your team in Nepal with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Nepal , particularly if you don't have established local relationships. You can hire employees in Nepal effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Nepal is a landlocked nation in South Asia. Its official name is the Federal Democratic Republic of Nepal. It is mostly located in the Himalayas, but also includes sections of the Indo-Gangetic Plain, bordering Tibet of China to the north and India to the south, east, and west, with the Siliguri Corridor separating it from Bangladesh and Bhutan. Nepal's landscape is diversified, with fertile plains, subalpine wooded hills, and eight of the world's ten largest mountains, including Mount Everest, the highest point on the planet. Nepal is a multi-ethnic, multi-lingual, multi-religious, and multi-cultural country, with Nepali serving as the official language. Kathmandu is the capital and biggest city of Nepal.

The word "Nepal" first appears in documents from the Indian subcontinent's Vedic period, the era in ancient Nepal when Hinduism, the country's major religion, was created. Gautama Buddha, the founder of Buddhism, was born at Lumbini, southern Nepal, around the middle of the first millennium BC. Northern Nepal was heavily influenced by Tibetan culture. The Indo-Aryan culture is interwoven with the Kathmandu Valley, which was the headquarters of the affluent Newar confederacy known as Nepal Mandala. The valley's merchants controlled the Himalayan branch of the historic Silk Road. The cosmopolitan area produced distinctive traditional art and architecture. The Gorkha Kingdom succeeded in uniting Nepal by the 18th century. The Shah dynasty created the Kingdom of Nepal and eventually struck an alliance with the British Empire via its dominant Rana dynasty. The nation was never colonized but instead acted as a buffer between Imperial China and British India. Parliamentary democracy was established in 1951, however, it was suspended twice by Nepalese rulers, in 1960 and in 2005. The civil war in Nepal in the 1990s and early 2000s concluded in the foundation of a secular republic in 2008, thereby terminating the world's last Hindu monarchy.

Nepal's 2015 Constitution establishes the nation as a secular federal parliamentary republic split into seven provinces. Nepal was admitted to the United Nations in 1955, while friendship treaties with India and China were inked in 1950 and 1960, respectively. Nepal is a founding member of the South Asian Association for Regional Cooperation (SAARC), which hosts the permanent secretariat. Nepal also belongs to the Non-Aligned Movement and the Bay of Bengal Initiative. The Nepalese Armed Forces are the fifth-largest in South Asia, and are known for their Gurkha past, notably during World Wars I and II, and have been a substantial contribution to United Nations peacekeeping missions.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Nepal is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

For every 20 days worked, employees are given one day of paid yearly leave.

Public holidays

Democracy Day

Maha Shivaratri

Holi Holiday

Nepali New Year

International Workers Day

Rakshya Bandhan

Teej Holiday

Dashain holidays

Tihar Festival

Optional holidays:

Nari Dibas

Ramjan Edul Fikra

Edyul Aajaha

Jitiya

Christmas Day

Sick days

After a year of employment, employees are entitled to 12 days of fully paid sick leave and 13 days of bereavement leave. Employees are permitted to accrue up to 45 days of sick leave. At the end of each year, employers must compensate employees for any unused sick leave that exceeds 45 days. When an employee leaves the company, the employer must pay any accrued or accumulated sick leave that is not used.

Maternity leave

Employees who give birth to a child are entitled to 60 days of paid maternity leave. Female employees can also take an additional 38 days of unpaid maternity leave.

Paternity leave

Male employees are entitled to 15 days of paid paternity leave.

Parental leave

Apart from maternity and paternity leave, there are no other provisions in the law of Nepal regarding parental leave.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

An employment contract may be terminated by either party at the conclusion of the contract period (if it is for a defined time), upon completion of the job (if it is performance-based), or by both parties. Employers must have a legitimate reason for terminating employment.

According to the law, an employer may terminate an employee for unsatisfactory performance. However, the employer should give the employee at least seven days to present an explanation.

Employers may terminate employment based on ill health if the employee has been deemed disabled by a medical practitioner. However, if the worker sustains an injury on the job and is getting treatment, the employment cannot be terminated for a period of one year. Unless verified by a medical practitioner, the employment of a worker undergoing treatment cannot be terminated until six months have passed.

An employee may freely resign by submitting a written resignation letter. Within 15 days, the employer must approve the resignation. If the employer does not accept the resignation within 15 days, it is presumed to be accepted. The resignation may be revoked by mutual consent or if the employee continues to work after the last day of employment.

Except for dismissals for misbehavior, both employers and employees are obligated to offer notice of termination or resignation. The notice period is proportional to the length of service.

Notice period

While dismissal does not require employer notification, any other type of termination does, depending on the employment term. Employees who have worked less than four weeks, for example, require one day's notice. They require seven days for employment lasting four weeks to a year, and thirty days for employment lasting more than a year.

Probation period

Nepalese labor laws provide for a probation period of up to a year.

Severance pay

If an employee is not eligible for unemployment benefits under the Social Security Act, they receive severance pay equal to one month's salary for each year of service.

6. Working hours

There is no information about the working hours for this country.

General working schedule

In Nepal, the standard workweek is 48 hours, or eight hours per day for six days. After five hours of work, employees are entitled to a half hour of rest.

Employers must provide transportation to and from work for female employees working between sunset and sunrise.

Overtime

Overtime should not exceed four additional hours per day and twenty-four additional hours per week. Overtime pay is 1.5 times the regular rate of pay.

7. Minimum wage

There is no information about the minimum wage for this country.

The minimum wage in Nepal is NPR 13,450 a month.

8. Employee benefits

There is no information about the employee benefits for this country.

A minimum of NPR 100,000 is required for health insurance, with both the employee and the employer contributing 50%. Accident insurance is also required by Nepalese labor regulations in the event of an injury on the job. This should be a minimum of NPR 700,000, and it should be fully covered by the employer.

If an employee dies on the job, the accident insurance proceeds to the worker's next of kin.

Religion is very important in Nepalese culture. Employers are obliged to provide a festival allowance of one month's salary to all workers in order for them to celebrate different religious holidays.

Employees may also cash in their accumulated leave when they leave the company. They are permitted to take up to 90 days of personal leave and 45 days of sick leave.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

The standard corporate income tax rate is set at 25 percent. Financial companies are imposed a corporate income tax rate of 30 percent. Manufacturing companies are imposed the reduced rate of 20 percent, but this is excluding the 5 percent tax on profit distribution and the 10 percent mandatory bonus to employees.

Individual income tax

Taxable persons in Nepal are imposed a personal income tax rate that ranges from 0 percent to 36 percent. This may increase due to the 1 percent social security tax and additional taxes. The actual percentage is computed depending on factors like the income bracket the individual belongs to.

VAT, GST and sales tax

The standard value-added tax (VAT) or goods and sales tax (GST) rate in Nepal is set at 13 percent. Imported vehicles, however, are subject to a 288 percent rate.

10. VISA and work permits

There is no information about VISA and work permits for this country.

It is fairly simple to get a visa for Nepal. This is the nation with some of the most exciting Himalayan peaks in the world, as well as numerous cultural extravaganzas for all adventure enthusiasts.

Except for Indian nationals, all foreigners must get a visa to enter Nepal. Indian nationals are free from Nepal's visa policy and may enter the country without a visa all year. Members of certain nations may acquire a visa on arrival, whilst others must obtain a Nepal visa before departing for their trip.

As a result, your nationality may have an impact on your Nepal visa. According to Nepal visa regulations, the length and purpose of your stay may also have an impact on your visa application. Despite these squabbles, obtaining a Nepal visa is a simple process; click here to begin applying immediately.

All travelers coming to Nepal for tourism or recreation are awarded a tourist visa. It is a visa that allows you to remain in the nation for a certain time. The Nepal business visa, on the other hand, is excellent for people who wish to go to Nepal for business and work reasons.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employment contracts in Nepal are an agreement for labor between an employer and an employee that contains the terms and conditions of employment as well as the letter of appointment. Contracts for employment must be in writing. A formal contract, on the other hand, is not necessary for casual employment.

Employers must recruit Nepalese nationals wherever feasible and may only engage a foreign employee if a Nepalese citizen cannot be located. When entering into an employment contract with a foreigner, the contract must be in the employee's native tongue or English.

With Rivermate being your Employer of Record (EoR) in Nepal, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Nepalese Rupee

13.Opening a subsidiary in Nepal

There is no information about the working hours for this country.

How to set up a subsidiary

Before creating your subsidiary, think about things like your location, proximity to resources, and the individuals you'll be working with. The capital city, Kathmandu, and other metropolitan centers provide strong economic prospects in the service sector, while agriculture is important across the nation.

With Nepal's borders with India and China, the vast bulk of commerce occurs between the nations, and you should consider them as potential resource sources for your subsidiary. It's also worth noting that Nepali is the most widely spoken language, followed by Maithili and Bhojpuri.

When it comes to the legal aspects of establishing a subsidiary, you must follow a set of procedures to guarantee that your firm is lawfully constituted. This procedure usually takes seven to ten days, and you must set up your subsidiary within 30 days of establishing your business in-country. The steps are as follows:

1. Obtaining authorisation from the proper industrial department at your organization.

2. Having your business name registered with the Office of the Company Registrar.

3. Obtaining a registration number from the Department of Industry (DOI).

4. Registering your business with the Inland Revenue Department (IRD) for taxes

You'll also need a bank account to manage funds, as well as a board of directors and a managing director. Your board of directors will be in charge of making decisions for the subsidiary. Make sure you've specified the laws and regulations, as well as who has the authority to sign legal judgments.

Subsidiary laws

You may operate as a public or private limited corporation, each with its own set of rules. The most prevalent kind of registered business is a private limited company. They can only have 101 shareholders and cannot sell shares to the general public. A minimum of seven shareholders and NPR 10 million in paid-up capital are required for public corporations. Shares of a public firm may be sold to the general public and listed on the stock market.

In order to incorporate your subsidiary, you must spend at least NPR 50 million. The DOI and the Nepal Rastra Bank must both authorize this investment.

13. Why choose Rivermate as your Employer of Record / PEO in Nepal

Establishing an entity in Nepal to hire a team takes time, money, and effort. The labor law in Nepal has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Nepal simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Nepal give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Nepal via our Employer of Record (EOR) / PEO solution.

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