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Foreign Employers in Nepal
SSF obligations, Labour Act compliance, and work permit requirements for foreign companies operating in Nepal
⚖️ Clear Legal Position: No Exemption for Foreign Companies
Foreign companies, branch offices, representative offices, INGOs, and joint ventures operating in Nepal and employing staff are subject to the same SSF and Labour Act obligations as Nepali companies. There is no exemption based on foreign ownership, country of incorporation, or nationality of employees.
[Source: Social Security Act 2074, Section 4 · Labour Act 2074]
Which Foreign Entities Must Comply?
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Branch / Liaison Offices
Foreign company branches and liaison offices registered in Nepal must enroll all employees (local and foreign) in SSF.
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Joint Ventures
Nepal-registered JV companies (even with majority foreign ownership) are fully subject to SSF and Labour Act.
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INGOs / Development Organisations
International NGOs and development organisations with SWC affiliation operating in Nepal and employing local/foreign staff must comply.
⚠️ Even 1 Employee Triggers Compliance
There is no minimum employee count. If your foreign entity has even 1 employee working in Nepal, SSF registration and Labour Act compliance are mandatory.
SSF Obligations for Foreign Employers
These are identical to Nepali employers — no special foreign employer provisions:
| Obligation | Detail | Penalty for Non-Compliance |
|---|---|---|
| Register with SSF | Register at employer.ssf.gov.np — free, online | NPR 1,00,000 fine OR 1 year imprisonment OR both |
| Enroll all employees | Within 3 months of hiring — Nepali AND foreign staff | NPR 25,000 per employee per month of non-enrollment |
| Monthly contributions | 11% employee + 20% employer = 31% of basic salary | 10% interest on overdue amount |
| Deposit deadline | Within 25 days of month-end | 10% interest per annum |
| Work accident liability | If undeposited during accident: personally liable | Full SSF-equivalent benefit from own funds |
Work Permits for Foreign Staff
Foreign nationals working in Nepal must have a valid work permit
Issued by the Department of Foreign Employment (DoFE). The employer is primarily responsible for obtaining work permits for foreign staff.
Work Permit Process
1
Obtain business approval
Your foreign company must be registered in Nepal (OCR, SWC, or relevant authority)
2
Apply for work permit at DoFE
Department of Foreign Employment. Documents: passport, educational qualifications, job description, company approval
3
Obtain visa endorsement
Work permit endorsed with appropriate work visa category
4
Enroll in SSF
Foreign employee enrolled in SSF by employer within 3 months of start date
Key Rules for Foreign Staff
- Work permit required before starting work in Nepal
- Labour Act 2074 fully applies to foreign employees
- Same leave entitlements (annual, sick, maternity, paternity)
- Same overtime rules (1.5x / 2x)
- Same SSF rights — all 4 schemes
- Retirement Fund withdrawable when leaving Nepal
- Heir can take NPR 7L lump sum if death occurs in Nepal
Labour Act 2074 — Full Compliance Required
All provisions of Labour Act 2074 and Labour Regulations 2075 apply to foreign employers:
Leave Obligations
- Annual leave: 12 working days
- Sick leave: 12 days
- Maternity: 98 days
- Paternity: 15 days
- Mourning: 13 days
- Public holidays: all government-notified
Other Obligations
- Overtime: 1.5x / 2x rate
- Minimum wage: current govt rate
- Basic salary: min 60% of gross
- 30-day termination notice
- Workplace safety standards
- No unfair dismissal
Foreign Currency Considerations
If salary is negotiated in foreign currency (USD, EUR), SSF contributions are calculated on the NPR equivalent of the basic salary at the time of payment. The NPR ceiling of 3,50,000/month still applies.
Key Authorities & Contacts
| Authority | Role | Contact |
|---|---|---|
| Social Security Fund (SSF) | SSF registration, contributions, benefits | employer.ssf.gov.np · info@ssf.gov.np · 1116 |
| Department of Foreign Employment (DoFE) | Work permits for foreign nationals | dofe.gov.np |
| Ministry of Labour (MoLESS) | Labour Act enforcement, district Labour Offices | moless.gov.np |
| Office of Company Registrar (OCR) | Foreign company registration in Nepal | ocr.gov.np |
| Inland Revenue Department (IRD) | PAN/VAT registration | ird.gov.np |
| Lattice Nepal (this site) | Information resource (not legal advice) | ssf@latticenepal.com · (+977) 9845807015 |
⚠️ Get Legal Advice
Foreign companies operating in Nepal should consult a qualified Nepali lawyer or HR consultant for specific guidance. This information is a reference resource only and is not legal advice.