Looking to grow your company? Hiring international employees can give you access to cost-effective, skilled talent that will benefit your team.
Hiring from Nepal gives you access to a talented workforce. In fact, the talent pool in Nepal is not only deep but also highly specialized.
As such, this South Asian country is an ideal choice if you’re looking to grow your team worldwide.
Of course, you’ll need to understand the costs of hiring in Nepal beyond salaries. This includes benefits, bonuses, payroll, and taxation in Nepal.
In this article, we’ll break down the cost of hiring talent from Nepal and look at how much you can expect to spend per hire.
Nepal Hiring Costs
To start, as an employer, you’ll need to fulfill a few basic payment obligations. These include:
- Payroll (gross salaries)
- Taxes payments and withholding
- Statutory benefits
- Paid leave
- Overtime
- Severance pay
To make your hiring offers more attractive to prospective employees, it’s always helpful to include bonuses if possible, or “fringe benefits” like pay-in retirement plans, health insurance plans, meal subsidies, or other extras that go above and beyond an employee’s basic salary.
Required Costs of Hiring an Employee in Nepal
Nepal Gross Salary
Nepal’s minimum wage is 15,000 Nepalese Rupees per month (114.56 USD). At a lower minimum wage, this can mean more cost-effective hiring without sacrificing on talent.
Nepal Work Bonuses
As per the Bonus Act, if a company is profitable during a business year, it must allocate 10% of net earnings for bonus payments to employees for that fiscal year.
Nepal Government Fees and Taxes
Nepal has a provident fund for social security, which requires a 10% contribution from both employer and employee.
Income tax brackets in Nepal range from 1.5% to 25%.
Benefit Payments and Social Security
Nepal’s Social Security Fund (SSF) aims to offer coverage for maternity, sickness, employment injury, old age and economic retrenchment. Employers contribute approximately 20% and employees 11% for a total of 31%. They pay in monthly on an ongoing basis.
Overtime Pay
Workers are entitled to pay at a rate of 150% of their regular pay if they work over eight hours per day, or more than 48 hours a week.
Severance Pay
If a worker in Nepal is not entitled to unemployment allowance under the country’s Social Security Act, they receive 30 days’ pay as severance.
Optional Remote or Office Working Costs
Does your remote Nepal team need digital hardware or software set up to do their jobs? If you are bringing on team members remotely, you may have added costs like high-speed internet service, upgraded electronics, printers, or higher-volume servers.
Nepal’s national language is Nepali, but many people speak English as a second language. The rates of English, as well as proficiency, are higher around metropolitan areas like the capital, Kathmandu. Translation software for your team may be a consideration, depending on what parts of the country you are hiring from.
Consider whether you are hoping to hire a small or large number of Nepalese workers. If there’s a significant team, it could be worth investing in an office or coworking space so your team can access the technologies they need to perform successfully and build connections with their coworkers.
Total Cost of Hiring
Let’s say you wanted to hire an employee in Nepal at a salary of 100,000 USD (13,215,950 NPR)
- Salary: $100,000 USD Gross pay
- Employer social security contributions: USD 20,000 (2,643,190.00 NPR)
- Bonuses and other costs: 10%= 10,000
Total: USD 130,000 ( 17,180,735 NPR)
These numbers are just estimates, as hiring costs and total salaries can vary by sector.
It is important to note that this is a minimum payment, as generally, you will attract higher-skilled and competent candidates by including bonuses or other paid benefits.
How Borderless Can Help
Although it can seem like all these costs add up quickly, we want to make your hiring process stress-free. Onboarding your new Nepal team should feel like a breeze. It’s an investment, but it’s a major step for your company that you deserve to feel confident about.
At Borderless, we help you hire employees from Nepal and over 150 different countries if you are looking to grow your team. Book a demo to see how we’ll help you hire top global talent quickly and compliantly.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
