Employment
2017 Labour Act introduced social security contributions
The Labour Act 2074 (2017) applies to all enterprises regardless of size, sets an eight-hour day and requires written contracts. The Social Security Act created a contributory fund covering medical, accident and pension benefits.
Key rules
- Deadline — Monthly social security contribution by the deadline set by the SSF
- Deadline — Notice of retrenchment to the Labour Office before implementation
Governing law
- Labour Act, 20742017
- Contribution Based Social Security Act, 20742017
- Trade Union Act, 2049
- Bonus Act, 2030
In practice
Removing the old ten-worker threshold brought small employers into the statutory regime for the first time. Contributions run to 31 percent of basic salary split between employer and employee. Termination requires cause and process, with reinstatement available from the Labour Court. Nepal's outbound migrant workforce is separately governed by the Foreign Employment Act, which regulates recruiters and is a major area of practice.