Payroll in Nepal runs in NPR on a monthly payroll cycle is standard practice, aligned with the nepali fiscal calendar (shrawan-to-ashad year). cycle, with statutory employer contributions and a statutory annual bonus is mandated under the bonus act, generally calculated as a percentage of net profit distributed among employees, separate from any performance-based bonus.. Gracemark operates it end-to-end, humans, not tickets.
Currency
NPR, Nepalese rupee
Payroll cycle
Monthly payroll cycle is standard practice, aligned with the Nepali fiscal calendar (Shrawan-to-Ashad year).
Working week
Standard workweek is 48 hours (8 hours/day, 6 days), with overtime compensated at 1.5x under the Labour Act 2074 (2017).
Minimum wage
Minimum remuneration was revised to NPR 19,550 per month, effective July 2025, per Ministry of Labour, Employment and Social Security notice under Section 106 of the Labour Act 2074. [3](https://www.myrepublica.nagariknetwork.com/news/minimum-wage-of-rs-19550-for-workers-comes-into-effect-30-53.html)
13th-month
A statutory annual bonus is mandated under the Bonus Act, generally calculated as a percentage of net profit distributed among employees, separate from any performance-based bonus.
Employer cost
Employer Social Security Fund (SSF) contribution is 20% of basic salary (combined with the employee's 11%), funding provident fund, gratuity, medical and other social security benefits.
Probation
Probation period is capped at 6 months under the Labour Act 2074.
Notice period
Notice periods and severance depend on grounds and tenure; gratuity payments are mandatory for employees completing qualifying service periods, calculated progressively under the Labour Act.
Two ways to run payroll in Nepal
Own-entity payroll
For long-term presence in Nepal. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Southern Asia time.
EOR-run payroll
No entity in Nepal? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.
Compliance essentials in Nepal
Employment model: EOR vs. contractor vs. local entity for Nepal
Mandatory benefits, social contributions and any 13th-month obligation
Termination rules, statutory notice and severance exposure
Contractor misclassification risk and how local law defines employment
Currency (NPR), payroll cycle and Nepali-language contract requirements
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