Nepal's ambitious economic plans and a high percentage of young people make it an excellent location to expand your company. But before you can run your company abroad, you have to figure...
Read MoreNepal's ambitious economic plans and a high percentage of young people make it an excellent location to expand your company. But before you can run your company abroad, you have to figure out legal compensation and benefits. Offering the right wage and leave will keep your business compliant, while additional benefits make your company more appealing to potential hires.
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Nepal’s ambitious economic plans and a high percentage of young people make it an excellent location to expand your company. But before you can run your company abroad, you have to figure out legal compensation and benefits. Offering the right wage and leave will keep your business compliant, while additional benefits make your company more appealing to potential hires.
Navigating these various regulations can be challenging on your own. Globalization Partners has a team of legal experts prepared to support your compliance and competitiveness in the job market. Our team helps you draft an employment contract that meets all labor laws, and our scalable benefits packages let you offer support to your employees as your company grows. Work with us for top-tier benefits management services.
The minimum wage in Nepal is NPR 13,450 a month. A standard workweek is eight hours a day for six days a week — a total of 48 hours. Overtime can be up to 24 hours a week or four hours a day. Overtime encompasses 1.5 times the rate of regular pay.
Legal requirements outline a range or required benefits from time off to annual bonuses. Required leave includes:
Employees are entitled to cash in accrued leave by the end of service. They can accumulate up to 90 days of unused personal absence and 45 days of unused sick leave. Workers also receive parental leave — mothers earn 14 weeks off with 60 of those days paid in full, and fathers receive 15 days of fully paid paternity leave.
A notable aspect of benefits packages in the country is a required festival allowance. With religion playing a significant role in citizens’ lives, employers support their celebration of various religious holidays. You should provide this allowance annually, and it should equate to one month of pay.
Compensation also includes integrated health and accident insurance. The minimum health insurance requirement is NPR 100,000 in coverage, and the employer and worker both contribute 50% to the premium. Accident insurance is a minimum of NPR 700,000, fully paid by the employer.
While providing the required benefits are essential for staying compliant, additional benefits can encourage people to work for you. Incentives also give you a good reputation as an employer and motivate workers to put forth their best performance.
Financial benefits are the most preferred type of support. Some ideal additional provisions for your employees could include:
At Globalization Partners, we simplify benefits management with our compensation and benefits outsourcing services in Nepal. We’ll ensure you provide the legal minimums such as sick days and insurance and also make your workplace more competitive among other employers. Our varying benefits packages can scale with you, so your company provides what it can handle.
The Nepal Bureau of Standards and Metrology (NBSM) is responsible for outlining labor laws, including restrictions on benefits and compensation. Labor Act 2074, released in 2017, is the latest version release since 1992. The bureau does provide regular updates and amendments to these laws, often yearly. It’s crucial to keep an eye on any changes that could affect how you compensate your employees.
Your employees play a huge role in your company’s success, and you should compensate them fairly. Globalization Partners ensures your team receives the wages and market benefits they deserve. Contact us today to learn how our global PEO services can help.
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