Nepal is a beautiful landlocked country situated in South Asia. The country is positioned in the middle of the Himalayas, with Tibet on one side and India on the other.
The constant change in the political scenario in the country has adversely impacted the economy. As a result, employment in the country is predominantly governed by low earnings and poor work conditions. Further, following the pandemic and the nationwide lockdowns, nearly 3.7 million workers partially or completely lost their jobs. Skuad can assist you in finding the best fit for your company. Talk to a Skuad expert to learn more.
Overview of Nepal
Area: 147,516 square kilometers
Population: 28.09 million people
Gross Domestic Product (GDP) per capita: USD 1,071.05
GDP: USD 34.47 billion
Population density: 195.94 inhabitants per square kilometer
Median age: 21.6 years
Population growth rate: 1.35%
Unfortunately, Nepal is one of the least developed nations in the world. Its economy heavily depends on imports and foreign markets. Most essential commodities are imported by Nepal, from fuel to fertilizers and metals to consumer products.
The political and the administrative system is one of the biggest reasons for the country's under-development. The government has not made any changes concerning trade or investment policies to expedite economic development and attract foreign aid. The programs funded by foreign aid also failed to be effective.
According to a World Bank report, Nepal has successfully added four million jobs in the last decade, and this has been due to its shift from agriculture to services and modern industries. However, out of this, almost half were wage jobs.
Due to the lack of opportunities, there has been a surge in international migrants as they get to earn much higher wages than their counterparts in Nepal. Women find it relatively harder to move to foreign lands for better opportunities, and they also do not get enough prospects in the country, as in most cases, the working conditions are not up to the mark. Foreign workers in the country account for only 5% of the total workplace, which indicates a huge gap that needs to be filled by efficient employees and workers.
Top Industries in Nepal
Some of the leading industries in Nepal are as follows:
Agriculture: Agriculture is the most important industry in the country, accounting for 31.7% of Nepal's GDP and employing almost 65% of the population. The total arable land in the country is 25%, and forests cover almost 40% of the country's area. The rest of the region consists of mountains. The common crops cultivated in Nepal include wheat, rice, fruits, and vegetables.
Tourism: The second-most significant industry in the country is tourism, and it forms the avenue for the largest foreign income. Nepal is home to the world's highest mountain above sea level, Mount Everest, and several other well-known peaks. A huge number of mountaineers travel to the country to visit these mountain ranges every year. Nepal is also home to Lumbini Park, a World Heritage site and the birthplace of Gautama Buddha. In the Global Travel and Tourism Competitiveness Index, Nepal ranks 103rd.
Manufacturing: The manufacturing industry in Nepal is still growing; however, it can be a significant part of the economic growth in the country. These industries are small and are primarily concentrated on agricultural food processing. Jute manufacturing is an essential earner for foreign investments. Some other critical manufacturing industries in Nepal include meat, rice, and oil.
Due to Nepal's lack of well-formed industries, the country heavily relies on foreign aid from international governmental organizations, donor countries, and international financial organizations. Some of their leading donors include the United Kingdom, World Bank, and Asian Development Bank.
Internet Speed and Connectivity
Nepal is not well-known for its great internet speed. However, with the increasing number of people using the internet, the government is gradually making better speed and connectivity provisions. Some of the top internet providers in the country are Vianet, Worldlink, Subisu, and Nepal Telecom. To know more about hiring a remote employee in Nepal, book a demo with Skuad now.
Top Skills in Nepal
After the outbreak of the COVID-19 virus, the unemployment rate in Nepal has increased considerably. Due to the lack of opportunities in the country, a good chunk of the population is moving to the Middle East, India, South Korea, and Japan. As a result of this migration, there is a huge labor shortage in most sectors, including tourism, agriculture, industry, construction, and business. This has a major impact on the general growth of the country.
Some of the key industries hiring in Nepal are as follows:
Hotels and resorts/Restaurants
Degree in Hotel Management, Communication Skills, Leadership Skills, Flexibility, Multi-tasking, Recordkeeping
College and Universities
Graduation/ Post Graduation in the subject, Public Speaking, Interpersonal Communication, Recordkeeping
Degree in Banking and Finance, Analytical Skills, Cash Handling, Customer Service, Mathematics, Numeracy
Data Analysis, Email Marketing, Design Skills, Creative Problem Solving, Storytelling
Civil Engineering, Construction Management, Leadership Skills, Team Management, Risk Management
Programming Languages, Common Operating Systems, Software Proficiency, Technical Writing, Project Management, and Data Analysis
Top Skills by City
Let us look into the top skills available in the country in different cities:
Industrial Skills, Jute Mills Machinery, HealthCare and Medicine
When there's so much to offer, it becomes tricky to hire the right set of people for your team. Skuad can help you find, hire, and manage excellent local talent and make expansion in Nepal a hassle-free task.
Cost of Living
The standard of living in Nepal is comparatively lower than most countries in the world. Life here is rather simple, and the gap between the rich and the poor is not evident. The cost of living in Kathmandu, the capital of Nepal, is higher than in other cities such as Pokhara, Janakpur, Biratnagar, or Birgunj.
The table below gives an idea about the difference in the cost of living in different cities.
Monthly Expenses in NPR
Monthly Expenses in USD
Average Food Prices
Price in USD
Price in NPR
Milk (1 L)
Boneless Chicken (1 lb)
Apples (1 kg)
Potatoes (1 kg)
Bread (for two people)
The monthly rent for a 900 square feet apartment in an expensive area will be approximately USD 348 (41,552 NPR), and the same apartment in a cheaper area will cost USD 173 (20,656 NPR). Dinner for two costs about USD 14.7 (1,755.22 NPR), and a can of beer (16 fl oz) in a pub will cost USD 2.46 (293.73 NPR).
Education costs are cheap in the country, and an average annual private international school fee is approximately USD 7,799 (9,31,222 NPR) for primary school and USD 8,678 (1,03,6,177 NPR) for high school. Costs for a month in a preschool or a daycare will be USD 52.5 (6,268.65 NPR).
Even though Nepal's Interim Constitution of 2007 states that healthcare is a fundamental right and everyone should have access to free healthcare, the reality is different. The average cost of healthcare per person per year in Nepal is USD 6.80 (811.94 NPR), which translates to 5% of the total per capita expenditures.
Recently, workers' minimum wage was raised in Nepal, and the current minimum wage is USD 127 (15,164 NPR). Generally, the salary structure in Nepal changes drastically depending on the job and place in which it is situated. The salary range varies from USD 127.50 (15,234 NPR) to USD 452.04 (53,974 NPR). This salary often includes bonuses and all other allowances.
The table below shows the difference in salaries for various jobs in Nepal.
Salary in USD
Salary in NPR
Art and Culture
Most employees in Nepal have a salary increment of approximately 4% in 29 months. Learn more by talking to Skuad experts.
Average Increment Rate by Industry
Average Salary Increment by Experience
Employment Laws in Nepal
There has been a recent change in the employment laws in Nepal with the introduction of the New Labor Act. The new Act provides a lot of flexibility in hiring, giving employees clear provisions on the working hours and classification of roles. It also gives employers proper rights for the execution of their supervision and direction. The new law also provides formal recognition of outsourcing, enabling access to better talent.
Working Hours and Overtime: According to the new labor laws, the working hours in the country are eight hours a day and 48 hours a week. The overtime wage of the wage earners is one and a half times the workers' ordinary wage, and the maximum overtime that can be done is 24 hours a week.
Annual Leave: The annual leave in Nepal is based on the number of days employees work in the company. All employees are eligible for 13 public holidays. The Act allows workers a fully paid sick leave of 12 days per year. These sick leaves can be accumulated for a maximum of 45 days by the end of the year. Female workers are given 98 days off as maternity leave, and they are paid for 60 days. For paternity leaves, workers are given 15 days off, and these leaves are fully paid.
Drawbacks: Some of the employment issues relevant in the country are the pay gap between male and female employees, lack of anti-harassment rules in the employment sector, and a more inclusive workplace for people from the queer community.
Although the labor legislation in Nepal is more straightforward than in other countries, handling international legalities and taxation requires expertise. Skuad's EOR solutions for Nepal can help expand your business while adhering to the tax legislation, labor laws, and contracts.
How Can Skuad Help You in Hiring in Nepal?
Hiring in Nepal is a colossal task that requires a great deal of hard work, collecting information of the laws, demographics, hiring costs, living costs city-wise, statistics, and more. Skuad is a capable HR platform to hire exceptional talent from all over the world. The digital EOR platform takes care of all critical aspects of business expansion, such as sourcing and vetting talent, onboarding, global digital contracts, managing payroll, compliance, and tax filing.
A dedicated team of experts working for you across time zones and delivering excellent results allows you to focus on the business side of things without worrying about the detailed and complex hiring process. For more information, connect with Skuad experts and book a demo.