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Labour Law Nepal 2025 — Complete Guide
Everything you need to know about the Labour Act 2074 — minimum wage, leave, overtime, termination, and your rights as a worker in Nepal.
NPR 8,520
Minimum wage/month
[Labour Act 2074]
[Labour Act 2074]
8 hrs/day
Max standard hours
[Labour Act 2074, S.28]
[Labour Act 2074, S.28]
33 days
Minimum annual leave
[Labour Act 2074, S.34]
[Labour Act 2074, S.34]
1.5×
Overtime rate
[Labour Act 2074, S.31]
[Labour Act 2074, S.31]
About the Labour Act 2074 Nepal's primary labour legislation, the Labour Act 2074 (2017), governs all employment relationships in the formal sector. It sets minimum standards for wages, working hours, leave, termination, and worker safety. No employment contract can offer less than what the Act guarantees. [Source: Labour Act 2074, Section 3]
8 Topics — Select a Deep-Dive Guide
💰
Minimum Wage Nepal 2025
NPR 8,520/month total minimum. Sector-specific rates for hospitality, garments, brick kilns. How to check if you are underpaid.
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🗓️
Leave Entitlements Nepal 2025
13 sick days, 13 home leave days, 13 public holidays, maternity 98 days, paternity 15 days. What employers cannot refuse.
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⏱️
Working Hours & Overtime Nepal
8 hrs/day, 48 hrs/week standard. Overtime at 1.5× (first 4 hrs) then 2× (beyond). Max 4 hrs overtime/day. How to calculate your due.
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🛡️
Workplace Rights Nepal
Safety obligations, anti-harassment protections, sexual harassment law, caste-based discrimination, grievance procedures, and how to file a complaint.
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📋
Termination & Severance Nepal
Notice periods (30–90 days), legal vs illegal grounds for dismissal, gratuity formula, severance calculation. What you are owed when you leave.
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📄
Employment Contract Nepal
12 clauses every contract must have. What to check before signing. Red flags. Digital vs paper contracts. What the law says employers cannot include.
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⚖️
Know Your Rights — Labour Act
Overview of all worker rights under Labour Act 2074, dispute resolution, Labour Court process, Labour Office contacts.
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🏛️
Constitutional & SSF Rights
Constitutional rights for workers, SSF rights, how to file complaints against SSF non-compliance and constitutional violations.
Read full guide →
Labour Act 2074 — Quick Reference Table
| Topic | Minimum Standard | Source |
|---|---|---|
| Minimum wage (unskilled) | NPR 8,520/month (NPR 7,100 basic + NPR 1,420 grade) | Labour Act 2074, Min. Remuneration Committee |
| Standard working hours | 8 hours/day, 48 hours/week | Labour Act 2074, Section 28 |
| Overtime (first 4 hrs) | 1.5× normal hourly rate | Labour Act 2074, Section 31 |
| Overtime (beyond 4 hrs) | 2× normal hourly rate | Labour Act 2074, Section 31 |
| Max overtime/day | 4 hours | Labour Act 2074, Section 29 |
| Home leave | 13 days/year (1 day per 20 days worked) | Labour Act 2074, Section 34 |
| Sick leave | 12 days/year (after 1 month of service) | Labour Act 2074, Section 36 |
| Public holidays | 13 days/year | Labour Act 2074, Section 37 |
| Maternity leave | 98 days (60 paid by employer + SSF) | Labour Act 2074, Section 45 |
| Paternity leave | 15 days | Labour Act 2074, Section 45 |
| Notice period (employer) | 30 days (regular) / 90 days (retrenchment) | Labour Act 2074, Section 54 |
| Gratuity | 1 month basic salary per year of service | Labour Act 2074, Section 46 |
| Basic salary minimum | 60% of gross salary | Labour Regulations 2075, Rule 66 |
| Probation period | Maximum 6 months (extendable once by 3 months) | Labour Act 2074, Section 14 |
| Employment contract | Written and signed — mandatory | Labour Act 2074, Section 9 |
⚠️ This is the floor, not the ceiling. The Labour Act 2074 sets minimum standards. Your employment contract, collective bargaining agreement, or employer policy may give you more — and that higher standard applies. [Source: Labour Act 2074, Section 3]
How to Enforce Your Rights
1️⃣
Raise Internally First
Write a formal complaint to HR or management. Keep a copy. Give the employer 7 days to respond. Many issues resolve at this stage.
2️⃣
File at Labour Office
Visit your district Labour Office (श्रम कार्यालय). File a complaint in writing. Labour Inspector can investigate and mediate. Free of charge.
3️⃣
Labour Court
If the Labour Office cannot resolve, escalate to the Labour Court. Decisions are legally binding. You may hire a labour lawyer or self-represent.
Nagarik App / 1111 Hotline You can also file labour complaints via the Nagarik App (नागरिक App) or by calling the Government of Nepal hotline at 1111. Available 24/7. [Source: MoLESS, moless.gov.np]