Nepal, nestled in the Himalayas between India and Tibet, is home to eight of the world's 10 tallest peaks, including Mount Everest. Its rich cultural heritage is reflected in iconic sites like the Pashupatinath Temple and Boudhanath Stupa.
With a literacy rate of 77.4% and a workforce of approximately nine million people, Nepal offers an educated, large, and diverse group of professionals perfect for companies ranging from startups to corporations building their global remote teams.
Key Takeaways:
- Nepal's growing focus on technical and vocational education ensures a steady supply of skilled workers, particularly in IT, engineering, and software development.
- A 12.6% unemployment rate means that many Nepali workers are ready and open to full-time remote work.
- The country's minimum wage of NPR 17,300 and low cost of living make it an affordable option for hiring international workers.
Advantages of Hiring in Nepal
In Nepal, 21% of the population falls within the 16-25 age group, providing a strong pipeline of emerging talent.
Nepali workers are known for their strong work ethic, adaptability, and sense of responsibility. In addition, many young professionals, especially those in IT, customer service, and business possess strong English proficiency, making them well-suited for positions with global teams.
The country's lower cost of living allows businesses hiring Nepali talent to manage labor costs effectively while offering employees competitive salaries.
Here's a brief overview of some stats about Nepal:
- Language: Nepali
- Currency: Nepalese Rupee (NPR)
- Capital City: Kathmandu
- Population: 30 Million
- Cost of Living Rank: 120th
Nepal's Growing Digital Workforce
There is a 49.6% internet penetration rate in Nepal, and the government is making investments to continue to improve internet speed and connectivity throughout the country.
As of June 2024, the unemployment rate is 12.6%, with many young, educated individuals looking for remote work opportunities. On top of that, the government has rolled out policies to boost technical and vocational education to grow the country's pool of skilled workers.
Popular sectors for remote work in Nepal include:
- DevOps Engineer
- Front-end & Back-end Developers
- Digital Marketing & Copywriters
- Support Specialist
- Web Development
- Software Engineer
- Business Development
- WordPress Developer
Employment Laws: Hiring Compliantly in Nepal
Employment Contracts
In Nepal, there are four main types of employment contracts, each designed to meet different job needs and durations:
- Regular is the most common type of contract, ideal for continuous work and long-term commitment and without a fixed end date.
- Work-based focus on specific tasks or projects, ending once the assigned work is completed, and offers flexibility for project-based roles.
- Time-bound includes a clear start and end date, typically used for temporary or seasonal jobs.
- Casual allows workers to be hired for up to seven days a month for short-term or ad hoc roles.
Working Hours & Pay
The standard workday is eight hours, and the workweek cannot exceed 48 hours. Overtime is capped at 24 hours per week and paid 1.5 times the regular wage.
As of 2024, the minimum wage in the country is NPR 17,300.
Probation Periods
In Nepal, probation periods can last up to six months, during which employers can terminate employment without notice or compensation. Extensions are allowed if specified in the employment contract.
Employer Taxes
Employers in Nepal must contribute 10% of an employee's basic salary to the Social Security Fund (SSF). This contribution covers benefits such as medical care, accident insurance, maternity leave, dependent support, and old-age pensions.
Termination Process & Severance Pay
Employers in Nepal can terminate employment contracts for reasons such as poor performance, misconduct, redundancy, or health issues and must provide written notice.
The required notice period depends on the length of the employee's service:
- Up to 4 weeks: 1 day's notice
- 4 weeks to 1 year: 7 days' notice
- More than 1 year: 30 days' notice
Employees with at least one year of service, except those dismissed for serious misconduct, are entitled to severance pay. Typically, this amounts to one month's salary for each year of service.
Paid Leave Laws in Nepal
Vacation and Holiday
Nepali employees are entitled to one day of leave for every 20 days worked.
Employees also receive paid leave for several public holidays, including:
- Naya Barsha (New Year's Day)
- Ganatantra Diwas (Republic Day)
- Shree Krishna Janmashtami
- Gobhardan Pujan
- Laxmi Puja
Sick Leave
Employees in Nepal are entitled to 12 days of paid sick leave per year. A medical certificate from a certified doctor is required for any sick leave lasting more than three consecutive days.
Maternity Leave
In Nepal, female employees are entitled to 14 weeks of maternity leave, which includes a mandatory two weeks before the expected due date and at least six weeks following childbirth. However, only the first 60 days of leave are paid.
Paternity Leave
New fathers receive 15 days of paid paternity leave to assist in caring for their newborns.
Remote Work Opportunities in Nepal
Nepal offers a mix of affordability, adventure, and cultural richness, making it an attractive destination for digital nomads. Kathmandu and Pokhara are the main hubs, equipped with coworking spaces and cafes offering reliable Wi-Fi, which is ideal for remote work.
While Nepal does not have a specific digital nomad visa, it provides a flexible tourist visa that allows stays of up to 90 days per year.
How to Pay Remote Workers in Nepal
There are various methods for paying remote workers in Nepal, including bank transfers, digital platforms like Wise, and even cryptocurrency.
However, managing global payroll often comes with challenges, such as ensuring tax and labor compliance, dealing with fluctuating exchange rates, and minimizing the risk of manual payroll errors.
To simplify the process, companies can partner with an Employer of Record (EOR) to manage all HR-related tasks, including payroll, for their remote employees in Nepal.
Hire in Nepal with RemoFirst
RemoFirst helps businesses employ talent in more than 180 countries, including Nepal.
We serve as the official employer for your remote staff, handling key functions like onboarding, payroll, and compliance with local laws. This enables your company to hire international employees without the complexities, time, and costs of setting up a foreign entity.
Book a demo today to learn more about how we can help with your global hiring needs.
