Why Hire in Nepal?

Looking to hire remote workers for your team? With Interloop, you can easily hire, pay, and support employees from anywhere in the world, making the entire process smooth and worry-free.

Capital City

Kathmandu

Currencies

Nepalese Rupee (NPR)

Population size

29,641,381

(est. 2024)

Languages spoken

Nepali

Why hire staff in Nepal?

Our Services

Recruit Talent

Our recruitment service manages the entire process: planning, searching, screening, and evaluation, ensuring a seamless hiring experience.

Onboard Contractors

We handle hiring, onboarding, compliance, and payroll for contractors, letting your business tap into global talent for growth.

Run Global Payroll

Managing payroll across jurisdictions is complex and costly. We ensure timely, reliable payments for your employees and contractors worldwide.

Employment Contracts in Nepal

In Nepal there are 3 types of employment type, each type will represent different purpose on hiring in the country.

1. Permanent Employment Contract

  • Definition: Standard employment post-probation.
  • Features: With this type of contract the employee will be eligible for the Job security, long-term employment, Life insurance, retirement plans, and a detailed employment agreement as per local law and the internal organization’s policy.

2. Probationary Employment Contract

  • Definition: Trial period for assessing suitability for a permanent role.
  • Duration: 3-6 months, extendable.
  • Features: With this type of contract the employer will be eligible for the Evaluates performance and cultural fit, with less job security and benefits compared to permanent contracts.

3. Substitute (Alternate) Employment Contract

  • Definition: Temporary appointment in place of an absent employee.
  • Features: With this type of contract the employer will be eligible for Ensures continuity of work, short-term duration.

Working Hours

  • Working hours continue to be 8 hours a day and 48 hours a week
  • 30 minutes’ break is provided after 5 hours of work, where the work can be interrupted. Where the work cannot be interrupted, break is provided after shifts.

Overtime

Overtime has been increased to 24 hours per week from 20 hours a week. Overtime pay is 1.5 times the regular remuneration.

Probation period

  • The probation period can last a maximum of 6 months.
  • During probation, the employer can terminate the employee’s contract for unsatisfactory work or if the employee is deemed unsuitable for the position.
  • If the termination is not due to unsatisfactory work, the employee has the right to request an investigation.

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Benefits and Leave in Nepal

Leave Encashment

Carry Forward of Annual Leave

Carry-forward rights, if allowed, often come with conditions, such as a limit on the number of days that can be carried forward or a requirement that the carried-forward leave must be used by a specific deadline (e.g., within the first quarter). However, this depends on the organization’s policy.

General Principles on Leave Entitlement

Medical Insurance

  • Coverage: At least NPR 100,000 per year per employee.
  • Premium: To be borne at the ratio of 50:50 by the employer and the employee.

Accident insurance

  • Coverage: at least NPR 700,000 for every employee.
  • Premium: Fully paid by employer.

Employer and Employee Contribution

Both employers and employees are required to contribute a certain amount of the employee’s basic salary each month to the Social Security Fund. The contribution rates are as follows:

S.N.HeadingEmployee (Rate)Employer (Rate)Total Rate
1Provident fund10%10%31% of Basic Salary
2Social security tax1%-
3Gratuity-8.33%
4Medical Insurance-1.67%
Total11%20%

Note: The Social Security Fund (SS) is no longer considered a mandatory contribution, as the matter is currently in court. The government has not issued a final decision on this issue, and due to the ongoing legal proceedings, employers cannot be compelled to comply with it. As of now, we cannot proceed with SSF contributions until further notice from the government. To be eligible for a pension from the SSF, an individual must consistently contribute for a minimum of 15 years or until reaching the age of 60.

Termination in Nepal

Notice Period

The notice requirement is linked to the length of service which is as follows:

Period of employmentNotice period
Up to 4 weeks1 Day
4 weeks to 1 year7 Days
Exceeding 1 year30 Days

If either the employer or the employee terminates the employment without providing notice, remuneration in lieu of the notice period shall be given to permanent workers. However, this is also subject to the terms and conditions outlined in the employment agreement between the employer and the employee.

Voluntary Resignation

Compulsory Retirement

Termination Due to Poor Performance

Termination of Service for Time-Bound Employees

Employment Termination Based on Seriousness of Offence

Termination upon Misconduct

1) Causing bodily harm or injury to the Proprietor, Manager or Employee of the entity.
2) Accepting or offering bribes. Stealing property of the entity.
3) Embezzlement of property of the entity.
4) Causing damage knowingly to the property of the entity.
5) Unapproved absence from entity for more than 30 consecutive days.
6) Causing damage to secrecy relating to special technology of the entity.
7) Convicted of a criminal offense involving moral turpitude.
8) Presenting false documents for the appointment.
9) Consuming psychotropic drugs or alcoholic drinks.
10) Having been punished twice for other misconducts within 3 years.
11) Other similar misconducts as pre- scribed in the Bylaws.

Termination Due to Health Reasons

Expense Reimbursement Policy

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Brand Experience​​

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Singapore Office

Get in touch

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Level 3, Prasert Sutt Building 360 Sanambinnam Nonthaburi Road,
Bang Krasor, Mueang Nonthaburi,
Nonthaburi 11000 Thailand

Singapore

#23-05. International Plaza, 10 Anson Rd, Singapore 079903

Contact Us

TH Phone : +66 (0) 97 106 9113
SG Phone : +65 9102 0303
Office Phone : +66 (0) 2 007 0971
Email : enquiry@inlps.com
Line@ ID : @inlps

Our Hours

MON-FRI : 09:00 – 18:00

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