How to hire remote employees in


Famous for the tallest mountains in the world, Nepal is also a hotspot for great remote talent. On this page, we’ll teach you how to hire remote talent in Nepal—without paying thousands in legal fees or spending months buried under legal paperwork.

Country snapshot

Nepalese rupee

What to know before you hire in 


Want to hire someone in Nepal? Excellent. But, no matter where you’re from, labor laws in Nepal are different from those in your home country (unless you’re from Nepal, of course). Read on to learn about your options, plus as the easiest way to make remote hires in Nepal.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Nepal than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Nepal.

Taxes in 


Employer tax

Medical treatment

Accident and disability protection

Old age protection

Dependent family protection

Individual tax


Paid Time Off (PTO)

Annual leave days in Nepal are decided based on the number of days an employee works with a company.

At present, for every 20 days worked, an employee is eligible for one day of annual leave.

Each employee is eligible for one weekly holiday. This can be a Sunday, but if the employer cannot have all employees off on the same day, they may provide a break on a rotational basis.

All employees are eligible for a total of 13 days off for annual public holidays, including May Day. Women are given an extra day off for Women’s Labor Day holiday.

Public Holidays

There are 25 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • Employees are entitled to paid sick leave of 12 days.
  • If the employee has worked for the employer for less than one year, sick leave is granted in proportion to their employment period.
  • Employees can accumulate sick leave up to a maximum of 45 days and must be paid their basic remuneration for accumulated sick leave over 45 days at the end of the year.

Maternity Leave

Pregnant or nursing mothers are allowed a total of 98 days off from work based on their maternity leave.

They are fully paid for up to 60 days.

Paternity Leave

The newly introduced Labor Act requires employers to provide 15 days of paid paternity leave.

Parental Leave

There are no provisions in the law regarding paternity leave.

Other Leave

Home leave - one day's leave for every 20 days' work.

Special leave - 30 days a year after having it approved in advance.

Marriage Leave


Bereavement Leave

Employees are allowed up to 13 days of leave from work.


Termination Process

The employee can terminate the employment voluntarily by submitting a resignation letter.

The employment of the worker on work bound employment is terminated after the completion of the work provided in the employment agreement.

If the performance of the employee is found to be unsatisfactory or below the standard in the performance appraisal for three or more times, the employment of such worker may be terminated by the employer.

However, prior to terminating the employment the performance appraisal as per the Regulation under the Act or Bylaws should have been conduct.

Such employee should be provided an opportunity to submit explanation giving at least seven (7) days by the employer where ten (10) or more people work.

In case any employee is physically or mentally disabled or injured rendering him/her unable to work or requiring a long period for medical treatment effecting in the work of the entity, the employer, on recommendation of a medical practitioner may terminate his/her employment.

The employee or employer terminating the employment should provide a notice except in the situation of termination by dismissal.

The notice requirement is linked to the length of service which is as follows.

  • If the period of employment is up to 4 weeks, then the notice period is of 1 day.
  • If the period of employment is from 4 weeks to 1 year, then the notice period is of 7 days.
  • If period of employment is more than 1 year, then the notice period is of 30 days.

Notice Period

The notice period in Nepal is:

The employee or employer terminating the employment should provide a notice except in the situation of termination by dismissal.

Severance Pay

The severance payment is of 30 days per year if an employee is not entitled to unemployment allowance under Social Security Act.

Probation Period

Probation period Under the Labor Act 2074, the probationary period is six months.

Employee requirements in 


Working Hours

Nepalese rest on Saturday and work from Sunday to Friday.

Nepal generally has a 48 hour working week.


If any worker or employee is engaged to work for more than eight hours in any day, or for more than 48 hours in any week, he shall be paid remuneration for such overtime work at the rate of 150 per cent of his usual remuneration.

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