EOR in Nepal
Employer of Record in Nepal
- Save upto 3% on your payroll cost
- Hire talented professionals in Nepal without establishing a local entity
- Manage payroll, tax withholding, and statutory compliance seamlessly
- Minimize legal risks and avoid permanent establishment concerns
- Onboard employees faster with fully compliant employment contracts
- Enter the Nepalese market cost-effectively with transparent pricing
Happy Customers Globally
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Currency
Nepalese Rupee (NPR)
Capital
Kathmandu
Official Language
Nepali
Payroll Cycle
Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's Employer of Record in Nepal
Asanify’s Employer of Record service simplifies your expansion into Nepal by handling all employment complexities. As the #1 ranked platform across multiple categories on G2, we provide comprehensive EOR solutions that ensure full compliance with Nepal’s labor laws while enabling you to focus on growing your business and accessing Nepal’s emerging tech and service talent pool.
Hire Quickly and Legally
Deploy employees in Nepal within days without the lengthy process of entity registration. Asanify ensures all employment contracts comply with the Labour Act 2074 and local regulations, enabling you to start operations immediately while maintaining full legal compliance.
Complete Payroll & Tax Management
We handle monthly payroll processing in Nepalese Rupees, manage income tax withholding, Social Security Fund (SSF) contributions, and ensure timely remittance to authorities. Our platform automates calculations and provides transparent reporting for all payroll activities.
Full Compliance Assurance
Navigate Nepal's evolving labor regulations with confidence. Asanify manages statutory benefits including provident fund, gratuity, leave entitlements, and festival bonuses, ensuring your operations remain compliant with all local employment laws and recent legislative updates.
Risk Mitigation & Entity Protection
Reduce your permanent establishment exposure and legal risks when hiring in Nepal. As the legal employer, Asanify assumes employment liabilities while you maintain operational control, protecting your business from compliance penalties and regulatory complications.
How Asanify's EOR Simplifies Hiring in Nepal
Expanding into Nepal’s growing economy no longer requires complex entity setup or extensive local expertise. Asanify’s Employer of Record solution streamlines the entire employment process while ensuring compliance with Nepal’s unique labor framework.
- No Entity Required: Hire employees immediately without establishing a Nepalese subsidiary or branch office
- Local Expertise: Benefit from our deep understanding of Nepal’s Labour Act, tax regulations, and cultural employment practices
- End-to-End Management: From contract creation to offboarding, we handle every aspect of the employment lifecycle
Trusted by top companies around the Globe
Employer of record
Employment Law Compliance in Nepal
Nepal’s employment landscape is governed by the Labour Act 2074 (2017) and requires careful adherence to statutory requirements. Asanify’s EOR service ensures full compliance with local labor laws, including mandatory contributions, leave policies, and termination procedures. We stay updated on regulatory changes to protect your business from compliance risks.
- Income tax withholding and Social Security Fund (SSF) contributions managed accurately
- Compliance with mandatory leave, festival bonuses, and gratuity provisions
- Adherence to termination notice periods and severance payment requirements
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Employer of Record FAQs in Nepal
What is an Employer of Record in Nepal?
An Employer of Record (EOR) in Nepal is a third-party organization that becomes the legal employer of your workforce, handling all employment-related responsibilities including contracts, payroll, taxes, and compliance with Nepalese labor laws. This allows you to hire talent in Nepal without establishing a local entity, while maintaining day-to-day management of your employees’ work.
How quickly can I hire employees in Nepal through Asanify's EOR?
With Asanify’s EOR service, you can hire employees in Nepal within 3-5 business days. Once you select your candidate, we handle contract preparation, compliance documentation, and onboarding processes, enabling rapid deployment compared to the months required for entity registration and setup.
What are the mandatory employment benefits in Nepal?
Nepal requires employers to provide Social Security Fund (SSF) coverage, annual leave (18 days minimum), public holidays, sick leave, festival bonuses, and gratuity after one year of service. Female employees are entitled to maternity leave of 98 days. Asanify’s EOR ensures all these statutory benefits are provided in full compliance with the Labour Act 2074.
How does payroll processing work in Nepal?
Payroll in Nepal is typically processed monthly. Asanify handles salary calculations in Nepalese Rupees, deducts income tax according to progressive rates, processes SSF contributions (31% combined employer-employee), manages festival bonuses, and ensures timely payment to employees through local banking channels with full compliance documentation.
What is the Social Security Fund (SSF) in Nepal?
The Social Security Fund is Nepal’s mandatory social protection scheme covering health insurance, accident protection, dependent family benefits, and retirement provisions. Employers contribute 20% and employees contribute 11% of salary (31% total). Asanify manages all SSF registrations, contributions, and compliance reporting as part of our EOR service.
Can I terminate an employee in Nepal through an EOR?
Yes, Asanify manages compliant terminations in Nepal following Labour Act requirements. This includes proper notice periods (typically 30 days), documentation of termination grounds, calculation and payment of gratuity and final settlements, and ensuring all procedural requirements are met to minimize legal risks.
What are the tax obligations for employees in Nepal?
Nepal uses a progressive income tax system with rates ranging from 1% to 36% based on income brackets. Asanify calculates and withholds income tax from employee salaries, files monthly tax returns with the Inland Revenue Department, and provides employees with tax documentation. We ensure full compliance with Nepal’s fiscal year (mid-July to mid-July) requirements.
Does using an EOR in Nepal create permanent establishment risk?
Asanify’s EOR service is structured to minimize permanent establishment (PE) risk in Nepal. As the legal employer, we maintain the employment relationship while you direct the work activities. However, PE assessment depends on various factors including physical presence and business activities. We recommend consulting tax advisors for specific PE determinations based on your business model.
What employment contracts are used in Nepal?
Nepal recognizes both fixed-term and indefinite employment contracts under the Labour Act 2074. Asanify prepares legally compliant contracts in English and Nepali where appropriate, including all mandatory clauses covering compensation, benefits, working hours, leave entitlements, and termination conditions aligned with Nepalese labor law requirements.
Start Hiring in Nepal Today
Expand your team in Nepal compliantly and efficiently with Asanify’s trusted EOR solution—contact us now.