How to Hire Employees in Nepal: A Guide for Global Companies in 2025

Looking to hire employees in Nepal? Great decision! There are many employers worldwide who seek Nepalese workers for different jobs. And with the increased popularity of remote workers, working with teams across the country, no matter where you are in the world, has become simpler than ever.

That said, when you hire employees in Nepal, you can expect honesty, timely delivery of work, cost efficiency, and good education. The employees are just as fluent in English. Additionally, although they provide as good quality of work as do the people from India, the Philippines, and Western markets, the cost is relatively lower.

With expanded needs in everyday operations and fields of finance, IT, and customer support globally, hiring employees in Nepal is a wise decision for just about any business owner. Outsourcing agencies provide you with competent workers across industries in a smooth process in Nepal.

To hire employees in Nepal, be sure to go through this guide, which we’ve come up with, especially with global companies in mind!

Understanding Nepal’s Workforce Strengths

Every year, thousands of Nepalese youth graduate with a higher education degree in Nepal. These graduates specialize in the field of IT, business, finance, etc. They are proficient enough to carry out work with global companies without issue. And, that has been happening for quite many years now.

The Nepalese workforce is quite ahead compared to that of most other countries in the world when it comes to language expertise. With the growing influence of social media, they are just as known for global trends. The education system has also evolved over time with diverse subjects and majors, which is an added advantage.

When you hire employees in Nepal, you can expect:

• Motivated workforce: The Nepalese workforce is motivated to work daily or regularly for you, regardless of the time and location they’re in. Their honest nature has always had a positive impact on work delivery and continued company growth.
• Lower base salaries: Base salaries of Nepalese workers are very low as compared to the Western workforce. Most workers charge way less than workers from other Asian countries.
• English fluency: Education institutions in Nepal focus on providing English-based education. Hence, you can expect fluency in the language among Nepalese workers.
• Diplomatic humility: Nepalese workers are diplomatic and humble in how they deal with their employers and work team. This makes them quite easy to work with.

Legal Foundation for Hiring in Nepal

If you want to legally hire employees in Nepal, your company has to follow the Labor Act 2017 (2074 BS) and the Labor Rules 2018 (2075 BS). Further, the law specifies contract types, minimum salaries, international employment regulations, leave entitlements, benefits requirements, and termination.

The following are the legal areas to keep in mind:

Employment Contracts

Nepal mandates a written contract unless you’re hiring for less than a week. The contract includes job description, pay, perks, daily and weekly work hours, notice and termination policies, probationary period, and leaves. Foreign employers can get contracts in their language if they prefer it; otherwise, contracts are all made in English.

Work Hours and Overtime

The standard work hours in Nepal per day are 8 hours, with work from Sunday to Friday, Saturday being a public holiday. Likewise, in a week, an employee is expected to work at least 48 hours. The employees are legally able to work overtime for 24 hours, given they are getting paid 1.5 times the regular rate.   

Leave Entitlements

• Weekly holiday: 1 day every week.
• Public holidays: 13 days including May Day, one additional day to female employees on International Women's Day.
• Annual Leave: 1 day for every 20 worked days.
• Sick Leave: Fully paid up to 12 days (previously half paid up to 15 days) - For those who have not completed one year of service, sick leave is provided on a proportional basis.
• Maternity Leave & Paternity Leave: 98 days Fully paid up to 60 days and 15 days Fully paid.
• Mourning Leave: 13 days.

Minimum Wage and Bonus Requirements

The minimum wage had last been finalized in Nepal in July, 2025 as NPR 19,550 per month (approximately USD 139.51). Basic wage is NPR 12,170, and allowances include NPR. 7,380. The employees are also subject to bonuses for recognized festivals after having worked for the company for more than six months.

Social Security Fund (SSF) Contributions

Companies looking to hire employees in Nepal should register with SSF and sustain contributions for all employees in the formal sector between the ages of 16 and 59. SSF contributions cover pension, gratuity, maternity, dependant benefits, health or accident insurance, and a total contribution of about 20% from the business with 11% from the employee, or 31% of base pay.

Termination & Notice Periods

To terminate employees, you need to consider the following points:

• Probation period: The probation period is 6 months. Termination after this period should either be done through a proper notice period or with compensation.
• Notice period: The notice period for workers who have served less than 4 weeks is a day, above 4 weeks and under a year is 7 days, and more than a year is 30 days.

• Procedure for Disciplinary Action : 

  • Seek an explanation from the employee:
    1. give a letter stating the misconduct and punishment that is likely to be awarded,
    2. provide 7 days’ time to submit the explanation.
  • Time limitation for seeking explanation: within 2 months from the date of committing misconduct.
  • Time limitation for Punishment: within 3 months from the date of requiring of explanation. (Previously, within 2 months)
  • Authority to issue Punishment: Chief executive officer or the managerial level employee authorized by the Employee Bylaw

Further, employers can implement longer notice periods as has been specified by the law. Dismissals done under misconduct require a week-long explanation period.

Equal Opportunity & Non-Discrimination

In case of any unequal opportunities or discrimination in the workplace, a company or an employer should pay NPR 100,000. Employees, regardless of their caste, religion, gender, ethnicity, or disability, are subject to equal opportunity and non-discrimination.

Models for Hiring: Direct Entity vs EOR vs Outsourcing

Setting Up a Local Entity (Branch, Subsidiary, Liaison)

Anyone who wants to hire employees in Nepal can incorporate a local business. Such a business could be a representative office, a branch, or a private limited company. You can fully control your workforce this way. But, you will also be responsible for administrative setup and regulatory compliance, like registration with the labor office, CDO, VAT, PAN, SSF, etc.

Using an Employer of Record (EOR)

If you want to hire employees in Nepal but don’t want to own a legal entity, you can seek help from Employer of Record (EOR) service providers. They act as a legal employer, manage contracts, compliance, payroll, taxes, SSF registration, and provide onboarding support.

Contractor or Outsourcing Approach

You can hire employees in Nepal in a contract or outsource basis for short term work, project based work, or if you’re simply just seeking flexible hiring. With proper classification checks, this can become the quickest, effective solution.

Recruitment & Talent Sourcing Channels

There are plenty of recruitment and talent sourcing channels to seek help from when you want to hire employees in Nepal. Some such platforms include job portals which are either available as a website or an app, local staffing firms that have access to thousands of employees from different backgrounds, universities who have access to fresh graduates seeking jobs and internships, LinkedIn and few other social media platforms, and employee referrals.

For global employers, the most relevant and effective channel has to be an outsourcing agency or an EOR service.

Interviewing & Onboarding for Nepali Teams

The following are some useful interviewing and onboarding tips for Nepali teams:

Interviewing Tips

• Respect: You need to be respectful when you’re interviewing employees for just about any role. And since Nepalese employees are less direct in interviews, respect can go a long way in your favor as an employer.
• Practical skill tests: Don’t waste your and the interviewee’s time on irrelevant questions and tasks. Instead, assign them useful and worthwhile practical skill tests.
• Bilingual support: If you ask questions in only English, it can overwhelm, if not all, some candidates. Hiring a bilingual support who can speak in Nepali can help!
• Role expectation clarity: As you plan to hire employees in Nepal, clarifying the candidates on their roles for the specified position will help both parties complete interviews successfully.

Onboarding Tips

• Orientation with clarity: Provide orientation with clarity. The candidates should be known with Workflows, corporate culture, and tools utilized (HRIS, Slack, Zoom).
• Mentoring with performance expectations: Be sure to let the candidates know about performance expectations at your company.
• Share culture: Clarify your company’s culture, including holidays, team hierarchies, and local etiquette.
• Local monetary support: Make local monetary support, like SSF portal access, tax ID, and bank setup, easily accessible.

Payroll, Taxation & Compliance

When you hire employees in Nepal, you have to thoroughly take them through the salary structure at your company, income tax and deduction regulations, Social Security Fund & Provident obligations, payroll frequencies, and bonuses.

Similarly, personal income tax (TDS) from 1% to 36%, SSF contributions, and whether you will be paying on a monthly basis, weekly basis, or project basis should all be specified before you begin your work. You may not be required to mention everything in details in the contract.

Remote Work & IT Infrastructure

Since COVID 19, Nepal has seen a progressive growth in remote work. Needless to say, the IT infrastructure have improved progressively after the global pandemic with few gaps yet to be filled.

Nepal is now facilitated with WiFi facilities across the country with the access rate reaching up to 71 to 90% via cable networks and FTTH. Additionally, the broadband download speed rotates around 25 Mbps. Unreliable mobile broadband, cybersecurity issues, and power outages are common issues that are yet to be fully tackled.

In the current time, there has also been an increase in the number of remote workspaces besides just one’s home. Such spaces include cafes with good internet access and even spaces dedicated for remote workers. Data facility and power backups like UPS and inverter are just as commonly in use across the country.

Payroll portals, Asana, Zoom, Slack, and HRIS systems are used by employers and employees likewise. And, IT and hardware solutions have also become affordable with increased use and popularity among the remote workforce.

Cultural and Workplace Considerations

There are few norms that are followed rather culturally in workplace in Nepal. Some such norms and workplace considerations in the cultural context are as follows:

• Hierarchy & Respect for Seniors: The Nepalese workforce do not treat their seniors like regular co-workers. Instead, they are quite respectful and reserved around their senior’s presence. The respect may seem uncommon for Western employers, but there is nothing for you to be worried about if your Nepali employee is taking the hierarchy too seriously. In fact, it’s a good sign!
• Collectivism & Team Harmony: Nepalese workers believe in working collectively. Hence, ensuring team harmony can do your team good.
• Modesty & Thoughtful Communication: While there are quite a few exceptions, you can expect modest and very thoughtful, formal communication with Nepalese employees.
• Holidays & Festival Integration: When there are events, especially public holidays or important festivals in Nepal, you are expected to offer your Nepalese workers with satisfactory number of leaves.

Tips for Better Integration & Retention

• Offer Career Development Opportunities: It’s not possible for workers to always know how your company works (even when they’re experienced). Be sure to offer career development opportunities to them as necessary when you hire employees in Nepal.
• Open Feedback Culture: Offer feedback on a timely basis. This will keep all your workers integrated in a healthy manner, without the possibility of excessive chaos within teams.
• Support Well Being: Don’t overwork or overstress your workers. They won’t be productive, instead they will lose their well being.
• Adapt Western Best Practices: Even when you hire employees in Nepal, be open about introducing Western best practices in your everyday operations for progress.
• Avoid Aggression: Getting aggressive can ruin your relationship with your workers. Pro tip for every global employer: don’t!

Partnering with Local Experts

Partnering with local experts to hire employees in Nepal may seem challenging, but it really isn’t. Finding a good hiring partner can save you lots of time and efforts in this case. Main reasons why you should consider partnering with local experts is that they have diverse pool of human resources.

They’re also known to the local laws, payroll and benefits administration, show honest conformance to local legislation, statutory filings, HR compliance, employee engagement, training, and onboarding.

Conclusion

You can hire employees in Nepal and the whole process is going to be operationally flexible and affordable if you choose the right mediator between you and your employees. And while there are many companies that promise good work, only choose to rely on dependable and reputable agencies, mainly outsourcing agencies and EOR companies with a good track record.

With consideration of the local culture, work ethics, and legal laws of Nepal, you can experience the best collaborations for just about any industry. Companies looking for higher revenues can further explore international growth with half or even less than the cost they would have to pay in their own country.

Need Help Hiring in Nepal?

Kantipur Management Private Limited (KMPL) has got your back if you are looking to hire employees in Nepal. We provide remote staffing, talent sourcing, and full HR solutions that will help connect employers with proactive employees in no time. With us, you don’t have to worry about not meeting your hiring goals and staying within your standards. We have satisfactory support teams throughout Nepal.

To know more, be sure to connect with us today!