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Labor Laws in Nepal

  • Annual Leave: 18 days
  • Maternity Leave: 14 weeks
  • Public Holidays: 25
  • Workweek: 48 hours per week.

Income Tax in Nepal

Nepal has a progressive income tax with rates from 0% to 36%.

Value Added Tax (VAT) in Nepal

The normal VAT rate is 13%

Immigration Nepal

In Nepal, employers and employees are required to contribute to the Social Security Fund (SSF) to provide social security coverage. The contribution rates are as follows:

Employer Contribution

  • Pension Fund: 10% of the employee's basic salary. 
  • Gratuity: 8.33% of the employee's basic salary. 
  • Additional Contribution: 1.67% of the employee's basic salary.
  • Total Employer Contribution: 20% of the employee's basic salary. 

Employee Contribution

  • Pension Fund: 10% of the employee's basic salary. 
  • Social Security Tax: 1% of the employee's basic salary. 
  • Total Employee Contribution: 11% of the employee's basic salary.

Work Visas Nepal

There is one visa to legally work in Nepal:

Work Visa:

  • Foreign nationals typically enter Nepal on a tourist visa.
  • To apply for a work visa, individuals must secure a job offer and receive an appointment letter or employment contract.

Documentation Required:

  • Valid passport or a photocopy.
  • Current visa (tourist visa).
  • Work visa application form.
  • Tax clearance from the hiring organization.
  • Documentation from various government departments.
  • Work agreement from the Ministry of Home Affairs.

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