Same Act, two very different reading lists. Switch between the individual worker's view and the company's compliance checklist — then run five years of income tax slabs against your own numbers.
The Labour Act replaced the old 1992 law and applies to almost every enterprise in Nepal, regardless of headcount. Pick the tab that's actually you — the points are ranked by what tends to matter most in practice.
Every employee except casual workers (up to 7 days/month) is entitled to a written contract. Terms worse than the Act's minimums are void — the Act itself becomes the floor, contract or not.
Reduced from the old 1-year cap. Past six months you're treated as confirmed, with the full protections of a regular employee — unless lawfully terminated within the probation window.
A 30-minute break is due after 5 continuous hours. Overtime needs your consent and is capped at 4 hrs/day and 24 hrs/week, paid at a premium rate. Under-18 workers cannot be made to do overtime.
~12 paid sick days/year, one month's basic salary as festival expense annually, 14 weeks maternity leave (60 days fully paid), and 15 days paid paternity leave.
Roughly 1 day's notice for very short service, 7 days up to a year, 30 days beyond that. Severance is generally one month's basic salary per completed year of service.
Where an enterprise engages 20 or more workers, it must constitute a Safety and Health Committee — a right you can invoke if your workplace hasn't set one up.
11% from you, 20% from your employer, covering medical, accident/disability, dependents', and old-age benefits. SSF contribution also waives the 1% Social Security Tax on your income tax return.
Most disputes start with workplace mediation or the Labour Office. Unresolved wrongful-dismissal, wage, or unfair-practice claims go to the Labour Court, with appeal to the Supreme Court.
The old Act only applied above a worker-count threshold. The 2074 Act applies to any company, firm, partnership, cooperative, or organisation carrying on any industry, profession or service — profit motive or not.
Every hire except casual workers needs a written contract. Any term offering less than the Act's statutory minimum is void to that extent, no matter what both sides signed.
Mandatory once headcount crosses 20. Below that threshold it's good practice, not yet a legal requirement.
Enterprises with 10 or more workers must allow constitution of a Collective Bargaining Committee. Strikes no longer require a secret ballot — a simple notice to management is sufficient under the new Act.
Every formal employer must register with the Social Security Fund and contribute 20% of each employee's basic wage (employee adds 11%). SSF replaces standalone provident-fund and gratuity schemes for enrolled employers.
Misconduct dismissals require written notice of the allegation, a hearing, and the right to representation. A dismissal that skips this — even where the underlying conduct is real — is exposed to reversal as a procedural breach.
Permits are granted only where the role can't be filled by a qualified Nepali, and employers are expected to support skill transfer over time. Foreign-incorporated enterprises operating in Nepal have separate provisions under Sec. 90.
Contracts, payroll/attendance, leave records, SSF contribution receipts, an HR policy, and occupational health & safety records — the documents that support a routine inspection or Labour Office dispute.
Set via the tripartite Minimum Wage Fixation Committee, with separate sectoral rates (e.g. tea estates). Paying below minimum exposes the employer to a per-worker penalty.
Pick one fiscal year or line up all five — the calculator applies each year's actual slab law.