Nepal

• Maha Shivaratri
• National Democracy Day
• Nari Dibas
• Nepali New Year
• Majdoor Divas
• Buddha Jayanti
• Republic Day
• Janai Purnima
• Gai Jatra
• Shree Krishna Janamashtami
• Constitution Day
• Ghatasthapana
• Dashain
• Laxmi Puja
• Gobardhan Puja
• Bhai Tika
• Chhat Parwa

Working Hours

Employees can work up to eight hours a day, or 48 hours per week.

Minimum Wage

NPR 15,000 per month.

Employee Tax

Annual income	Tax rate
Up to NPR 500,000	1%
NPR 500,001 - 700,000	10%
NPR 700,001 - 1,000,000	20%
NPR 1,000,001 - 2,000,000	30%
More than NPR 2,000,000	36%
Old-age pension contribution	28.33%
Accident and disability contribution	1.4%
Medical insurance contribution	1%
Dependent family contribution	0.27%

Bonuses

Employees in Nepal are entitled to a 13th-month salary, also known as Festival Bonus. This is payable with the salary before Dashain.

Both indefinite and fixed-term employment contracts are permitted in Nepal. All contracts must also include:

• Nature of employment
• Job title and responsibilities
• Workplace
• Working hours
• Start date
• Other relevant employment terms.

Bylaws established under Section 108 of the Labour Act, 2074 are also an indispensable part of any employment contract.

Annual Leave

Minimum of one day's paid leave per 20 days of service.

Sick Leave

Up to 12 days' paid sick leave after one year of service. A medical certificate must be provided after three days’ absence.

Parental Leave

• Maternity leave: at least 52 days' paid leave.
• Paternity leave: none.

Termination Process

Penalties and punishments for poor performance are more common than employee dismissal in Nepal. Common employee sanctions include:

• Written warnings
• Pay reductions
• Withholding of a pay increase
• Temporary suspension

The only grounds for termination are:

• Causing bodily harm to a colleague
• Theft
• Absence without notice for at least 30 days
• Imprisonment for certain crimes
• Disclosing secret information

Employees can also end a contract by giving at least one month's notice.

Severance Pay

Employees are entitled to 30 days’ wages for each year of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.