In today’s competitive job market, finding the right talent for your organization can be a daunting task. Hiring employees from a foreign country like Nepal can be challenging. As an employer, you have to contend with language barriers and unfamiliar nuances of the local employment laws. Thankfully, there is a solution that can streamline the hiring process for companies looking to expand their business in Nepal– an Employer of Record (EOR).
The Benefits of EOR in Nepal
For companies that are looking to hire in Nepal, an EOR offers many benefits. Firstly, an EOR can fast-track the hiring process, as they already have an established legal and administrative framework in place. Companies that use an EOR in Nepal can be confident that their documentation and compliance are handled by a team of experienced professionals who understand local labor laws.
Compliance is particularly important in Nepal, where labor laws are strictly enforced. Employers who violate employment laws can face serious financial penalties and business disruptions. Using an EOR ensures that your company is legally compliant, avoiding unexpected surprises and negative impacts on your reputation.
Why Hire Talent in Nepal?
Nepal is home to a population of talented workers. This emerging global economy is rich in culture and celebrates unique national traditions. Sourcing your workers from Nepal can be a way to build international understanding and connection across borders.
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.
How Can I Legally Hire Employees from Nepal?
To hire from Nepal, your company needs to have a legal entity operating in the country. Getting an entity set up can be time-consuming. The efforts are only worth it if you intend to dramatically expand your business into the Nepali market in the long term.
An EOR service provider like Borderless can be an invaluable resource when it comes to hiring employees in Austria. Not only can they help you navigate complex labor laws and regulations, but they can also offer a range of services to support your business operations. From payroll and tax management to onboarding and offboarding processes, an EOR service can help streamline your business operations.
Nepal Employment Documents
Under Nepal’s Labor Act 2074, all employees are required to sign a work contract. An employment contract should include the basic conditions of employment, including:
- Job title or position
- Job description
- Salary, bonuses, and remuneration
- Duration of contract.
Vacation, Breaks, and Holidays
On the cultural front, Nepal observes a number of national and civic holidays you should consider when building your distributed team.
Nepalis celebrate:
- January 15: Maghe Sankranti
- January 22: Sonam Losar
- January 30: Sahid Diwas
- February 18: Maha Shivaratri
- February 19: Rastraya Prajatantra Dibas
- February 21: Gyalpo Losar
- March 8: International Women’s Day
- March 30: Rama Navami
- April 14: Nepalese New Year
- April 21: Eid al-Fitr
- May 1: Labor Day
- May 1: Buddha’s Birthday
- May 29: Republic Day
- June 29: Eid al-Adha
- August 31: Raksha Bandhan
- September 1: Gai Jatra
- September 6: Krishna Janmashtami
- September 19: Constitution Day
- October 15: Dashain
- October 15: Ghatasthapana
- October 21: Fulpati
- October 22: Durga Ashtami
- October 23: Maha Navami
- October 24: Vijayadashami
- October 25: Papankusha Ekadashi
- October 26: Dwadashi
- November 14: Govardhan Puja
- November 15: Bhai Dooj
- November19: Chhath
- December 25: Christmas
- December 26: Udhauli
- December 30: Tamu Lhosar
Nepal has significant Buddhist and Hindu populations and many of these holidays are religious holidays that hold high cultural significance. It is important to familiarize yourself with key religious holidays where your team in Nepal may need time off.
Taxes and Payment
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 talent.
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%.
Employer Responsibilities
An EOR like Borderless takes care of anything to do with legal compliance and HR. That being said, you are still responsible for the day-to-day operations of your business.
Things like onboarding and offboarding, corporate training, defining the scope of work responsibilities, and people management will all fall to you as the employer.
Where an EOR can help you is in making sure the contracts you give your workers are legal in their countries of employment and compliant to account for taxes.
Now that you know the basics of Nepali labor customs, standards of living, and lifestyle, keep reading for a step-by-step to choose the best EOR for you.
Choosing an EOR
To select the best-fit EOR for hiring your distributed team, there are a few factors you should consider:
- The Needs of Your Team. To ensure a successful hiring process from Nepal with EOR, it is essential to start with a clear idea of the positions you need to fill, the skills required, and the type of employment contract. This will guide the rest of the process and ensure that you are identifying candidates that meet your business needs.
- Proven Track Record. Has your EOR successfully hired and onboarded from this region before? It is important to research the EOR service providers available in Nepal and select one that meets your company’s specific needs. Look for a provider who offers comprehensive services, pricing transparency, and has a proven track record of compliance.
- Scale of Service. How comprehensive do you want your EOR services to be? The best EOR service or package can look very different for your company, depending on whether you are making a large or small-scale expansion into Nepal.
- Security and Data Privacy. On a digitally-connected team, your company’s intellectual property (IP) is at higher risk than an in-person working environment. Make sure you review your EOR’s security credentials. A good EOR service should be able to answer any questions you may have related to company IP and how they plan to protect your sensitive data.
How Borderless Can Help
As an Employer of Record (EOR) service, Borderless is an excellent solution for companies looking to hire in Nepal. By outsourcing your hiring administration tasks to a third-party provider like Borderless, your company can save time and money, and focus on your core business objectives.
Our guide to hiring your dream team will help ensure a successful hiring process and lay the foundation for a productive and efficient workforce. Book a demo with Borderless today to see how we can help.
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.
