Employment in Nepal

Employment in Nepal includes work performed for pay from the worker's perspective. The national framework applies across the employment relationship, but local delivery, sector rules, contract terms, Social Security Fund registration and domestic or foreign status can change the practical answer. The Ministry of Labour, Employment and Social Security, the Department of Labour and Occupational Safety (DOLOS), Labour and Employment Offices, local Employment Service Centres, the Social Security Fund (SSF), the Department of Foreign Employment (DOFE) and the Labour Court have different responsibilities. Employment may be regular, work-based, time-based, casual or part-time. A written contract should state pay, benefits and working conditions. Written contracts are generally required except for casual work, although an oral hiring arrangement can still establish an employment relationship. Training arrangements usually last no more than one year and retain minimum-wage and social-security safeguards. Pay starts when work starts, normally at intervals of no more than one month. Work lasting less than one month is paid within three days after it ends, while casual work is paid immediately. An annual grade after one year is at least half a day's basic pay, and wages cannot be reduced except under a collective agreement. For non-tea plantation sectors covered by the current national notice, effective 17 July 2025, the minimum wage is NPR 19,550 per month, made up of NPR 12,170 basic pay and NPR 7,380 dearness allowance. The stated rates are NPR 754 per day, NPR 101 per hour and NPR 107 per hour for part-time work. The wage is reviewed on a two-year cycle, and the applicable sector notice should be checked where a different rule may apply. Normal working time is up to eight hours per day and 48 hours per week. A worker receives a 30-minute break after five hours, counted as working time, one weekly rest day and overtime pay at 1.5 times the basic hourly rate. Overtime is limited to four hours per day and 24 hours per week. Leave includes 13 public holidays each year, or 14 for women including International Women's Day, one home-leave day for every 20 working days, and 12 paid sick days per year. Maternity leave provides at least 60 paid days; SSF support may add up to 38 days at 60% of basic pay under the relevant conditions. Employers must provide transport for women performing night work. Equal pay applies to work of equal value irrespective of sex. Workers have occupational safety and health protections, treatment and compensation for occupational disease, and rights to join a union and bargain collectively. Establishments with at least ten workers have a collective-bargaining committee pathway. SSF is Nepal's Social Security Fund. Its schemes cover medical, health and maternity care, accidents, disability, old age, dependent family support and unemployment assistance, subject to the relevant scheme conditions. A listed formal employer contributes 20% and the worker 11% of contribution-eligible basic income, for a total of 31%. Informal and self-employed participation exists, but access and scheme conditions differ. The SSF portal supports self-contribution after leaving an employer. Domestic job searches can use employer channels, Labour and Employment Offices, the Labour Market Information System (LMIS), Employment Information Centres and Employment Service Centres. Local governments are legally involved in public employment services, including registration of skills and qualifications and matching employer demand. Under the Right to Employment Act 2075, a registered unemployed person may qualify for at least 100 days of employment in a fiscal year. When the promised employment is not provided, a subsistence allowance may equal 50% of the minimum-wage equivalent for the unprovided days, subject to eligibility and other conditions. The Prime Minister Employment Programme (PMEP), also called the National Employment Promotion Programme, offers temporary public-work or employment support; it is not a regular permanent job and is not a universal unemployment benefit. Foreign employment uses a separate procedure through DOFE and the Foreign Employment Information Management System (FEIMS). A worker should use a licensed recruitment agency or an approved individual process, examine the written offer and contract, keep one copy and obtain labour approval before departure. Approved medical checks, insurance, pre-departure briefing and welfare-fund steps may apply. Official receipts are required. Informal brokers and consultancies do not have placement authority. A foreign national working in Nepal generally needs an employer labour permit and worker labour approval. Where a skilled Nepali worker is unavailable, the employer may need national advertising and supporting evidence; treaty, diplomatic and approved technical cases can be exceptions. Employment problems can be taken to a Labour and Employment Office or DOLOS for complaint handling, inspection, mediation or a decision. The Shramadhan labour helpline is another support channel. Collective disputes may proceed through negotiation, mediation and arbitration, while a strike is subject to statutory conditions. The Labour Court handles adjudication. Contracts, payslips, SSF records, notices and payment receipts provide useful evidence. A worker normally resigns in writing. The employer should accept or respond within 15 days; without a response, the resignation is treated as accepted. Notice periods are one day for employment of up to four weeks, seven days for more than four weeks up to one year, and 30 days after more than one year. Termination requires a proper and sufficient reason. Performance-based termination follows at least three consecutive unsatisfactory evaluations and prior evaluation. Redundancy or closure requires disclosure of the reason, date and number of affected workers at least 30 days in advance, with compensation of one month's basic pay for each year of service and proportional payment for less than one year. Misconduct requires due process, and accrued home and sick leave is settled according to law. SSF continuation or withdrawal depends on the applicable scheme rules.