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Your Labour Rights
Complete summary of Nepal Labour Act 2074 — what every worker is legally entitled to
About Labour Act 2074 (2017)
The Labour Act 2074 is Nepal's primary legislation governing employment relationships in the private sector. It replaced the old Labour Act 2048. It sets minimum standards for working conditions, leave, overtime, termination, and workplace safety. The Labour Regulations 2075 provide further operational details.
[Source: Labour Act 2074 (2017) · Labour Regulations 2075 (2018) · moless.gov.np]
Leave Entitlements
| Leave Type | Entitlement | Conditions | Source |
|---|---|---|---|
| Annual Leave | 1 day per 20 working days (approx 12 days per year) |
After working at least 240 days in a year. Can be accumulated up to 60 days. | Labour Act 2074, Section 41 |
| Sick Leave | 12 days per year | With pay. Medical certificate required for more than 3 consecutive days. Unused sick leave can be accumulated up to 45 days. | Labour Act 2074, Section 43 |
| Maternity Leave | 98 days | Minimum 60 days with pay from employer (rest may be paid via SSF). Can be taken before or after delivery. Cannot be dismissed during maternity leave. | Labour Act 2074, Section 45 |
| Paternity Leave | 15 days | With pay. Must be taken within 60 days of birth of child. | Labour Act 2074, Section 45 |
| Mourning Leave | 13 days | On death of close family member (spouse, child, parent, parent-in-law, sibling). With pay. | Labour Act 2074, Section 44 |
| Public Holidays | As notified by Government of Nepal | Full paid leave on all public holidays. Working on public holiday = compensatory leave or 2x pay. | Labour Act 2074 |
✅ Leave Cannot Be Denied Arbitrarily
Your employer must grant leave when you are entitled to it. Refusing legitimate leave without reasonable grounds is a violation of the Labour Act. You can file a complaint at your district Labour Office.
Overtime Rules
Overtime is NOT optional — it must be paid at prescribed rates
| Working Situation | Pay Rate | Limit |
|---|---|---|
| First hour of overtime | 1.5x your hourly rate | Maximum 4 hours overtime per day Maximum 20 hours overtime per week |
| Subsequent overtime hours | 2x your hourly rate | |
| Work on rest day (weekly off) | 2x your daily rate or compensatory leave | At least 1 rest day per week required |
| Standard work hours | Regular pay | 8 hours/day · 48 hours/week maximum |
⚠️ Overtime cannot be forced
Employers cannot compel employees to work overtime except in exceptional circumstances (fire, flood, national emergency). You have the right to refuse routine overtime requests.
[Source: Labour Act 2074, Section 35]
Minimum Wage
⚠️ Minimum Wage is Revised Periodically
The minimum wage is set by the Government of Nepal and is revised periodically. The figures below are reference estimates only — always verify the current rate at moless.gov.np.
| Component | Estimated Amount (FY 2082/83) | Note |
|---|---|---|
| Basic minimum wage | ~NPR 7,000/month | Verify current rates at moless.gov.np These are estimates only |
| Grade/dearness allowance | ~NPR 1,400/month | |
| Total minimum | ~NPR 8,400/month | |
| Review frequency | Periodically by MoLESS based on CPI and cost of living | |
SSF and Minimum Wage
SSF's "1 month minimum wage lump sum" for newborn refers to this government-set rate. For SSF calculation purposes, your basic salary floor must not go below what is required for SSF contribution calculations, which interact with the minimum wage level.
Termination Rights
Notice Requirements
Employee resigning: 30 days notice or waived by mutual consent
Employer terminating: 30 days notice OR 1 month salary in lieu of notice
No notice required for: Serious misconduct (theft, violence, forgery)
Employer terminating: 30 days notice OR 1 month salary in lieu of notice
No notice required for: Serious misconduct (theft, violence, forgery)
[Source: Labour Act 2074, Section 50]
Severance & Benefits on Termination
Gratuity: Routed through SSF employer contribution (20%)
SSF Retirement Fund: Withdrawable at any age on termination
Accumulated leave: Must be paid out in cash
Retirement age: 58 years mandatory retirement under Labour Act
SSF Retirement Fund: Withdrawable at any age on termination
Accumulated leave: Must be paid out in cash
Retirement age: 58 years mandatory retirement under Labour Act
[Source: Labour Act 2074 · Social Security Act 2074]
Unfair Termination
These are illegal grounds for termination:
- Trade union membership or activity
- Filing a complaint against the employer
- Pregnancy or maternity leave
- Race, gender, religion, caste, political opinion
- Disability (unless incompatible with job requirements)
Workplace Safety
Employer Obligations
- Maintain safe working environment
- Provide personal protective equipment (PPE)
- Conduct safety training for all workers
- Report workplace accidents to authorities
- Provide first aid facilities at workplace
- Ensure adequate lighting, ventilation, sanitation
- Maintain accident register
Your Rights if Injured at Work
- SSF Accident scheme — 100% at empanelled hospital, Day 1
- Employer must file accident report
- Cannot be dismissed during recovery from work injury
- Temporary disability: 60% basic salary/month from SSF
- Permanent disability: lifetime pension from SSF
- If employer undeposited: employer pays personally (Section 9(6))
Labour Dispute Resolution
Step 1 — Negotiation
Direct discussion with employer
First, attempt to resolve the issue directly with your manager or HR department. Keep written records of all communications.
Step 2 — Internal Grievance
Formal internal complaint
File a written grievance through your company's internal complaint process if one exists. Response must be received within 7-15 days.
Step 3 — District Labour Office
File complaint with Labour Office
File a complaint at your district Labour Office (Shram Karyalaya). The Labour Inspector can investigate and mediate. This is free. Contact details: moless.gov.np
Step 4 — Labour Court
Labour Court proceeding
If Labour Office mediation fails, cases go to the Labour Court. This is a formal legal proceeding. Consider engaging a labour lawyer. Labour Court decisions can be appealed to High Court.
Step 5 — High Court
Appeal to High Court
Further appeal available to Nepal High Court for points of law.
Trade Unions
Under Article 17 and 34 of Nepal's Constitution, and Labour Act 2074, you have the right to form and join trade unions and engage in collective bargaining. Trade union membership cannot be grounds for termination.
[Source: Constitution of Nepal 2015, Article 34 · Labour Act 2074]
Penalties for Employers Violating Labour Act
| Violation | Penalty | Source |
|---|---|---|
| Underpaying minimum wage | Fine + back payment with interest | Labour Act 2074, Section 84 |
| Denying entitled leave | Fine equivalent to leave pay owed | Labour Act 2074 |
| Non-payment of overtime | Fine + full overtime owed | Labour Act 2074 |
| Unfair dismissal | Reinstatement OR compensation (up to 6 months salary) | Labour Act 2074, Section 52 |
| Failure to maintain workplace safety | Fine; criminal liability if death/injury results | Labour Act 2074, Chapter 8 |
| Obstructing trade union | Fine + criminal charges | Labour Act 2074 |
| Not depositing SSF contributions | Criminal — up to 3 years imprisonment | Social Security Act 2074, Section 71 |
Also see: Know Your Rights → — how to file complaints step by step, templates, and contact information for all relevant authorities.
Deep-Dive Guides — Labour Law Nepal
Each topic below has a dedicated full-length guide with calculations, examples, and complaint steps.
Know Your Numbers
See exactly what SSF takes from your salary and what your employer contributes
Calculate My SSF Contribution → | Full Employee Guide →