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Hire in Nepal

Hire in Nepal

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%

Economy

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.

Market Size

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:

Skill Skillsets
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
Banks Degree in Banking and Finance, Analytical Skills, Cash Handling, Customer Service, Mathematics, Numeracy
Digital Marketing Data Analysis, Email Marketing, Design Skills, Creative Problem Solving, Storytelling
Construction Civil Engineering, Construction Management, Leadership Skills, Team Management, Risk Management
Web Development 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:

Cities Top Skills
Kathmandu Teaching, Engineering, Management, Sales, Healthcare
Janakpur Healthcare, Hotel Management, Tourism, Banking
Biratnagar 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.

City Monthly Expenses in NPR Monthly Expenses in USD
Kathmandu 50746 425
Pokhara 48596 407
Janakpur 45731 383
Biratnagar 40835 342

Average Food Prices

Food Price in USD Price in NPR
Milk (1 L) 0.74 88.36
Boneless Chicken (1 lb) 2.52 300.90
Eggs (12) 1.92 229.25
Apples (1 kg) 2.19 261.49
Potatoes (1 kg) 0.45 53.73
Bread (for two people) 0.5 59.70

Average Rent

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

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).

Healthcare

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.

Skuad experts can help you handle global talent seamlessly. Get in touch with us to learn more!

Salary Structure for Various Roles in Nepal

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.

Jobs Salary in USD Salary in NPR
Administration 202.73 24206
Agriculture 192.12 22939
Art and Culture 210.45 25128
Banking 320.73 38296
Construction 269.02 32119
Economy 273.14 32596
Education 222.07 26515
HR 277.31 33111
IT 363.89 43449

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.

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