Automate payroll in Nepal with Al-powered calculations, local Social Security Fund (SSF Nepal) handling, and compliant payslips generated in seconds.
Establish credibility and match buyer objections: compliance, local knowledge, pricing clarity, and support.
Local Compliance Without Local Overhead: Ontop automates Nepal tax calculations and Collective Bargaining Agreement requirements so you avoid setting up a local entity. The platform handles Festival Allowance (Dashain Bonus) payments, wage floors, and regional tax variation to keep payroll compliant and predictable. Transparent Pricing And Fees: Pricing clearly shows payroll fees, exchange rates, and contractor or EOR plan costs before payment.
Finance teams get predictable statements with no surprise charges. Human Support When It Matters: Live support helps resolve local queries and edge cases. Dedicated onboarding specialists guide tax registration and social security setup so teams move from hire to pay faster. Global Coverage With Nepal Expertise: Ontop supports hiring across 150+ countries while providing Nepal-specific workflows. Proration for Festival Allowance (Dashain Bonus), Collective Bargaining Agreement compliance, and Inland Revenue Department (IRD Nepal) deadline management. Scale globally while keeping local accuracy.
Provide fast facts: minimum wage, pay frequency, bonuses, regional salary ranges. Satisfies informational intent and helps long-tail SEO.
Minimum Wage And Pay Frequency: Nepal's minimum wage is NPR 17,300/month (2026) Monthly. With Festival Allowance (Dashain Bonus), annual total reaches the statutory requirements. Many employers pay 1 month salary - mandatory - before Dashain festival or prorate into Monthly payments. Ontop supports both structures.
Average Salary And Net Take Home: National average salary is ~NPR 480,000 per year, about ~NPR 40,000 per month gross. Ontop displays gross-to-net breakdowns so payroll and offers align with local expectations.
Regional Variation To Budget For: Salaries run higher in Kathmandu and Pokhara. Kathmandu averages NPR 50,000 - 150,000 (~40%% above national). Pokhara around NPR 35,000 - 100,000 (~10%%). Ontop lets you model regional differences in offers and cost projections.
Festival Allowance (Dashain Bonus): Nepal commonly provides 1 month salary - mandatory - before Dashain festival. Payroll logic captures proration rules so payslips match local contract terms.
Nepal's wage structure includes Collective Bargaining Agreement that set sectoral minimums. Buyers search "minimum wage by sector," "CBA wages." Captures mid-funnel research intent.
National Statutory Minimum Wage: Nepal's national minimum wage is NPR 17,300/month (2026) Monthly. Applies to all workers unless a higher sectoral minimum applies. Revised annually.
Collective Bargaining Agreement Sectoral Minimums: Nepal has multiple active Collective Bargaining Agreement agreements covering specific sectors. These set minimums higher than the statutory minimum depending on industry and role. Sectors include key local industries.
How Sectoral Wage Floors Affect Payroll: If an employee falls under a specific CBA, you must pay the sectoral minimum. Underpaying triggers wage claims, back pay, and penalties. Ontop stores and applies the correct rate based on employee role and sector.
How Ontop Applies Correct Wage Floors: Ontop maintains an updated CBA database and automatically applies the correct minimum wage. During payroll preview, the system displays which agreement applies and confirms compliance. Removes manual compliance risk.
National Average Salary Benchmark: Colombia's national average salary is approximately ~NPR 480,000 per year. Varies by role, experience, and sector. Larger cities run up to 20% higher; rural regions typically align with the statutory minimum.
High-Cost Cities: Kathmandu and Pokhara: Kathmandu offers salaries ~40%% above national average, particularly in tech and finance. Typical range: NPR 50,000 - 150,000 annually for mid-level roles. Pokhara offers ~10%% premium with strength in innovation and services. Typical range: NPR 35,000 - 100,000.
Secondary Cities and Regional Variation: Secondary cities generally sit between 5% to 10% above the national average, depending on local industries. Rural regions typically align with or fall below the national average. When budgeting for diverse teams, account for market research to ensure equitable offers.
How Ontop's Cost Calculator Handles Regional Modeling: Input location and role to preview total employer cost. See how regional differences, wage floors, and benefits combine to show true cost of employment by city.
Buyers search "contract types Nepal," "permanent vs fixed-term." Legal structure and misclassification risk are critical for compliance.
Permanent Full-Time Employment (Permanent Employment Contract (Niyamit Kar-Samjhauta)): Standard indefinite contract with full statutory protections. Employees get all mandatory benefits (Festival Allowance (Dashain Bonus), Annual Leave, sick leave, maternity leave, Gratuity / Severance). Termination requires just cause or economic redundancy with notice and severance payout. Employer Social Security Fund (SSF Nepal) contributions typically 20% employer SSF (if registered) or 10% gratuity fund%.
Fixed-Term Contracts (Fixed-Term Contract): Limited-duration contracts (typically for a fixed period, renewable). Used for project work, seasonal roles, or temporary needs. Same taxes and benefits as permanent, but with defined end date. Subject to renewal restrictions and CBA rules. Simpler termination but accrued benefits paid in full.
Part-Time Contracts: Reduced hours subject to local statutory limits. Salary and benefits are prorated by hours worked. Social Security Fund (SSF Nepal) and taxes apply pro-rata. Ontop handles prorated Festival Allowance (Dashain Bonus) automatically.
Apprenticeships: Training contracts for students or junior profiles with reduced Social Security Fund (SSF Nepal) contributions where applicable. Includes structured training and on-the-job learning. Misclassification can trigger reclassification penalties.
Self-Employed / Service Contract: Independent contractor operating own business. No employer obligations, only invoice payments. Contractor handles own Social Security Fund (SSF Nepal), taxes, invoicing. Critical: if worker appears to be employee (direction, control, exclusivity), you face reclassification and back-pay exposure.
Compliance Differences Between Contract Types: Tax rates, Social Security Fund (SSF Nepal) contributions, benefits, termination rules, and Gratuity / Severance accrual vary by type. Misclassification triggers wage claims, penalties, and reclassification costs.
How Ontop Templates & Payroll Logic Handle Each Type: Ontop provides compliant templates for each type and applies correct payroll logic: permanent benefits, fixed-term accruals, part-time prorations, apprenticeship rates, and Service Contract invoicing. Avoids misclassification risk.
Explain operational flow from onboarding to monthly payments. Reduces friction and clarifies steps.
Onboarding And Registration: Ontop handles registration with Nepal tax authorities (Inland Revenue Department (IRD Nepal)) and Social Security Fund (SSF Nepal) and collects required IDs. Automation plus human verification reduces setup time and avoids compliance gaps. Typical onboarding: a few business days.
Monthly Payroll Calculation: Gross-to-net includes progressive 1% up to NPR 500,000 / 10% / 20% / 30% / 36% tax rates, 11% employee SSF + income tax (PAYE)% Social Security Fund (SSF Nepal), and Festival Allowance (Dashain Bonus) proration. Platform applies region-specific tax bands, CBA rules, and wage floors for accurate payslips.
Contributions And Filings: Employer contributions include Social Security Fund (SSF Nepal) (11% employee SSF + income tax (PAYE)) and applicable local surcharges. Submitted according to statutory deadlines to Social Security Fund (SSF Nepal) on your behalf. Ontop maintains records for annual reconciliation.
Payment Execution And Reconciliation: Payments in NPR Rs (Nepalese Rupee) via local bank transfers to local accounts. Ontop shows conversion rates and fees before approval. Audit-ready receipts and instant USD payout options available.
EOR Vs Service Contract: Your Options: Choose Service Contract plans for flexible work or full EOR for permanent employees. Ontop supports both and highlights compliance differences so you pick the right structure.
Finance teams search "Nepal payroll deadline." Captures operational queries and establishes Ontop as deadline-management partner.
Monthly Tax Withholding & Social Security Fund (SSF Nepal) Payment Deadlines: Inland Revenue Department (IRD Nepal) tax withholding due Ashad end (mid-July) - annual PAYE reconciliation via Inland Revenue Department (IRD Nepal) online portal. Social Security Fund (SSF Nepal) contributions due Monthly by end of month to Social Security Fund (SSF Nepal) authority. Late payments trigger Late SSF: 10% surcharge; late PAYE: 10-50% penalty penalty plus interest.
Annual Compliance Deadlines: Monthly salary tax (PAYE) declaration: annual Social Security Fund (SSF Nepal) reconciliation, due End of month. Annual Income Tax Return: due Mid-July (Ashad end). Annual Salary Certificate: annual employee tax certificate due By mid-July.
Payroll Processing Calendar (Monthly Example):
Monthly payroll - PAYE by end of month - SSF contributions - annual mid-July reconciliation. Key Regulatory Bodies & Filing Channels: Inland Revenue Department (IRD Nepal):
PAYE income tax. Online filing via official portals.
Social Security Fund (SSF): Social security.
Department of Labour and Occupational Safety: Labor law enforcement.
Penalties for Non-Compliance: Late Inland Revenue Department (IRD Nepal) remittance:
Late SSF: 10% surcharge; late PAYE: 10-50% penalty plus interest. Social Security Fund (SSF Nepal) shortfalls result in fines. Missing documentation increases audit exposure. Audit exposure increases with missing filings. Willful violations can trigger criminal liability.
How Ontop Manages Deadlines Automatically: Ontop tracks all compliance deadlines, sends alerts before due dates, and submits filings automatically. Finance team approves payroll ahead of deadlines. All documentation audit-ready.
Buyers search "how much leave Nepal," "maternity leave," "paid leave entitlements." Impacts total cost of employment and satisfies planning intent.
Festival Allowance (Dashain Bonus) (October (Dashain)): All permanent employees entitled to 1 month salary - mandatory - before Dashain festival. Typically paid in October (Dashain), or prorated across year. Statutory bonus, not discretionary. Must factor into annual payroll cost.
Annual Leave: Minimum 18 days/year (Hami - Home leave 12 + sick 6) of paid vacation annually. Unused leave carryover varies by CBA. Some allow unlimited carryover; others limit carryover. Leave paid at regular rate upon termination if unused.
Sick Leave: Statutory sick leave paid at 6 days/year full pay from employer. Medical certification required after a few consecutive days as per local law. Social Security Fund (SSF Nepal) may provide supplementary coverage for longer absences.
14 weeks (98 days) maternity of maternity leave. Paid at Full pay employer for 60 days; SSF pays remainder (if registered) by the local health entity. Additional parental leave may apply.
Public Holidays: Nepal observes ~35+ public holidays (Bikram Sambat calendar based) national holidays annually. Employees receive full pay or premium pay if required to work. Regional variations exist. Gratuity / Severance: Permanent employees receive Per Labour Act 2017: gratuity from SSF; severance 1 month per year when terminated without just cause. Gratuity / Severance is a significant liability, must be accrued regularly and paid in full at termination.
How Ontop Automates Benefit Accrual & Compliance: Ontop automatically calculates Festival Allowance (Dashain Bonus), leave balances (by CBA type), maternity deductions, and Gratuity / Severance reserves. Payslips show accruals and deductions clearly. Audit-ready.
Decision makers need concrete cost inputs. Provide contribution ranges, deduction rates, and sample calculations for budget decisions.
Employer Social Security Fund (SSF Nepal) And Additional Charges: Employer Social Security Fund (SSF Nepal) varies by sector and contract. Approximate rates:
Employee Deductions And Tax Bands: Employee deductions include 11% employee SSF + income tax (PAYE)% Social Security Fund (SSF Nepal) and progressive Inland Revenue Department (IRD Nepal) tax: 1% up to NPR 500,000 / 10% / 20% / 30% / 36% Regional/local taxes may add extra percentages.
Total Employer Cost Example: Scenario: Permanent employee in Kathmandu at NPR 50,000 gross/month/month gross.
For annual planning, expect the total employer cost to be roughly ~10% above gross above the gross salary, plus applicable statutory accruals for benefits.
Clarify payment rails, currency handling, and worker features that influence adoption and retention.
Local NPR Rs (Nepalese Rupee) Transfers And Pay Runs: Payroll in Nepal typically uses NPR Rs (Nepalese Rupee) payments via local bank networks to local accounts. Ontop supports local rails so workers receive funds on payday in a single auditable run. No conversion friction.
Multi-Currency And Dynamic Conversion: When paying from other currencies, Ontop shows rates and fees before confirmation. Finance leaders get transparent previews. All conversions logged for audit.
Ontop Wallet And Instant USD Payouts: Workers receive USD via Ontop wallet backed by U.S. bank for fast access. Instant payouts reduce waiting times. Visible on worker dashboard and app. Useful for remote workers or USD preference.
Visa Debit And Worker Perks: Ontop issues Visa cards (physical or virtual) for immediate fund access. Security controls (instant freeze, limits) and perks (cashback, travel benefits, reduced transfer fees).
Buyers search "Nepal payroll mistakes," "how to avoid penalties." Fear-based content drives conversions.
SSF Enrollment Avoidance
Risk Level: HIGH
Nepal's Social Security Fund (mandatory since 2020) requires 31% total contributions (20% employer + 11% employee). Many employers remain in the old gratuity-only system to avoid the higher contribution rate. SSF conducts employer registration drives with penalties for non-enrolled companies. Ontop enrolls all Nepal employees in SSF and manages the transition from legacy gratuity arrangements.
Festival Allowance Non-Payment
Risk Level: HIGH
The Dashain bonus (1 month salary before the Dashain festival) is mandatory under the Labour Act 2017 for all employees who have worked at least 1 year. Many foreign employers are unfamiliar with this obligation. The Department of Labour imposes back-payment orders. Ontop calculates and schedules Dashain bonuses automatically based on the Bikram Sambat calendar.
Ontop supports payroll for both contractors and employees in Nepal. The platform provides contractor (Service Contract) contract templates and full EOR services for employees so you can choose the structure that fits compliance and operational needs.
Ontop applies local employer contribution rules (typically around 11% employee SSF + income tax (PAYE)) and sector-specific rates when calculating payroll liabilities. The system presents a clear breakdown of employer charges during payroll preview so you know the total cost before approval.
Yes, mandatory bonus structures like Festival Allowance (Dashain Bonus) are common. The standard structure is 1 month salary - mandatory - before Dashain festival, usually paid in October (Dashain) or prorated across the year. Ontop supports both approaches and reflects proration on employees' payslips and in cost projections.
Employees typically see Social Security Fund (SSF Nepal) deductions around 11% employee SSF + income tax (PAYE) and progressive Inland Revenue Department (IRD Nepal) income tax withholding between 1% up to NPR 500,000 / 10% / 20% / 30% / 36% depending on income bracket and region. Ontop calculates and withholds the correct amounts based on salary, location, and personal circumstances.
Yes, Ontop provides cost previews that include employer contributions, taxes, statutory charges (like Gratuity / Severance accruals), and regional variation. Use these previews to budget hires accurately and compare contractor versus employee scenarios.
No. Ontop can operate as your Employer of Record (EOR), handling all legal employer responsibilities and registrations. You avoid the complexity and cost of setting up a local company. Alternatively, if you have an entity, Ontop can serve as your payroll processor.
Common risks include misclassifying employees as contractors, missing Inland Revenue Department (IRD Nepal) payment deadlines, and failing to adhere to Collective Bargaining Agreement rules. Ontop's automation and expert support mitigate these risks.
