Establishing and maintaining a Nepal payroll
One important element of expanding into Nepal is likely to be hiring locally, and this means setting up an in-country payroll. Establishing payroll in Nepal involves navigating a complex set of unique and frequently changing employment laws, which can be a lengthy and difficult process.
A popular solution to this difficulty is to outsource the Nepal payroll setup and management to a global PEO. At Horizons, our team specializes in helping organizations expand into Nepal as smoothly as possible. We’ll handle your payroll setup and management, whether or not you already have an established presence in the country.
Why choose the Horizons payroll solution?
If you have an entity
If you have already established a legal entity for your business in Nepal, we can provide outsourced payroll solutions to help you build and manage your local payroll. In addition, we can manage all of you HR, contracts, and legal compliance work to ensure you are fully equipped to hire locally as rapidly as possible.
This level of outsourcing is a good choice for any company that already has an entity in Nepal and could benefit from support from Nepal experts.
If you don’t have an entity
If your organization has yet to register an entity in Nepal, then we can provide a comprehensive service to get you up and running in the country. We’ll use our subsidiary in Nepal to act as employer of record for your hires so you don’t have to go through the complex process of establishing an entity.
Additionally, we will set up and manage your Nepal payroll, handle HR, compliance, and any other associated work to make your expansion simpler and low risk.
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Nepal payroll guide
What withholdings and taxes are required in Nepal?
In Nepal, both employers and employees must contribute to the country’s provident fund, paying 10% of salaries into this fund.
Income tax in Nepal is progressive, and rates of between 1% and 36% apply depending on income level.
Entitlements and terminations
The usual notice period for employee termination in Nepal is 30 days, as long as the worker has been with their employer for more than one year. Additionally, severance payments of one month of normal salary are common.
Probation periods are limited to six months.
How to establish a Nepal payroll
An important part of the hiring and payroll process for many foreign organizations is setting up a Nepalese entity to act as employer of record. This process can be lengthy and expensive, often taking weeks or even months to complete.
Horizons can help you to avoid this lengthy and complicated process, providing comprehensive payroll setup and management outsourcing in Nepal. Beyond this, our experts will handle your in-country HR, compliance, and tax, and we can even act as your employer of record if you don’t have an entity in the country. Outsourcing to Horizons can save you time, effort, and money, setting you up for a successful expansion into Nepal.
Manage payroll in Nepal
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.