Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Nepalese rupee (रू, NPR)

Payroll Frequency


Public Holidays

32 days

Employer Taxes


Cost of Living Index


Statutory Leave

1 day of leave for 20 days worked

Sick Leave

15 days

Maternity Leave

52 days

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

NPR 15,000 per month.

Overtime Pay

Overtime is paid at a rate of 1.5 times an employee’s regular rate if the employee works more than eight hours in a day or more than 48 hours in a week. 

Additional Pay

Religion is very important in Nepalese culture. Employers must provide a festival allowance of one month's pay to all employees for any religious festivals they may observe.

Employees can also cash in their accumulated leave when they leave the company. They are permitted to accrue up to 90 days of personal leave and 45 days of sick leave.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

Provident fund: 10%

Employee Costs & Taxes

Provident fund: 10%

Employment Information

Termination Process

An employment contract must end in accordance with the rules laid out by Labor Act 2074. Employment can come to an end naturally if it is time-based, work-based, voluntary, or casual. Employees can also be terminated for poor performance, and compulsory retirement and may choose to resign due to persistent health problems.  

Several termination scenarios are outlined in Nepali labor laws:

  • Letter of resignation: An employee may submit a letter of resignation, which must be approved by the employer within 15 days. If the employer does not accept the resignation, the termination becomes effective after the 15-day period. If the employee continues to work after this period, the resignation is null and void.
  • Termination at the end of the job: Termination for work-based or time-bound employees occurs automatically at the end of the job or time frame. If the employer extends the project, a work-based employee's employment continues.
  • Medical issues: If an employee suffers from a medical condition that necessitates long-term treatment, an employer may request a termination based on a doctor's recommendation. However, if the employee was injured on the job and is undergoing treatment, the employer can only fire the employee after a year of treatment.
  • Poor job performance: Terminating employees for poor performance is a more involved process because it allows them to explain their actions. Employers who believe a worker's performance falls short of expectations can conduct a performance appraisal. The employee has seven days to submit an explanation for low productivity, such as personal issues. If an employee fails to meet appraisal standards three times in a row, the employer has the right to fire them.

Certain behaviors result in automatic dismissal from service, such as:

  • Inflicting bodily harm or injury on any member of the entity
  • The acceptance or offering of bribes
  • Stealing or causing property damage
  • Embezzlement
  • 30 days of unapproved leave
  • Receiving two misconduct punishments within two years
  • Using forged documents
  • Using psychotropic drugs or drinking alcoholic beverages

Notice period

Employee resignation letters should be signed and approved by employers within 15 days of submission. 

Probation Period

Employers in Nepal may structure employment agreements so that employees remain in a probation period for up to six months. During this period an employee may be terminated if his or her work is not satisfactory.

Severance Details

If an employee is not eligible for an unemployment benefit under the Social Security Act, they are entitled to one month's pay for each year of service as severance pay.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo