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Hiring Foreign Employess in Nepal

The document discusses foreign worker permits in Nepal. It notes that while many Nepalis work abroad, relatively few foreigners work in Nepal legally. Currently there are an estimated 550,000 foreign workers in Nepal, mostly from India, though only around 6,000 have been issued work permits. The top countries that have received work permits are China, UK, USA, India, South Korea, and others. Telecommunications and air services employ the most foreign workers with permits. Nepal limits foreign workers to 5% of a company's workforce but exempts some foreign government agreements. The rules and regulations on hiring foreign workers are also summarized.

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66 views3 pages

Hiring Foreign Employess in Nepal

The document discusses foreign worker permits in Nepal. It notes that while many Nepalis work abroad, relatively few foreigners work in Nepal legally. Currently there are an estimated 550,000 foreign workers in Nepal, mostly from India, though only around 6,000 have been issued work permits. The top countries that have received work permits are China, UK, USA, India, South Korea, and others. Telecommunications and air services employ the most foreign workers with permits. Nepal limits foreign workers to 5% of a company's workforce but exempts some foreign government agreements. The rules and regulations on hiring foreign workers are also summarized.

Uploaded by

cbaraj
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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In todays globalized world workforce move from one place to another and entirely work in a

different countries. Though there are a lot of Nepalese who are working in foreign countries,
comparatively very small fraction of foreigners work here in Nepal.

Department of labor There are estimated 550,000 non-Nepalese citizen work here in Nepal out of
which 500,000 are from India. Nepal Labour law requires foreign nationals to get permit to work in
Nepal though only 540 foregin nationals got new permit and 537 foreign nationals renewed their
work permit in first five month of FY 19/20. Chinese national have received the highest number of
work permit in Nepal. Indian residents do not require work permit while working in Nepal though
some Indian nationals working on skilled labour have aquired work permit. Foregin nationals form
the countries that have provided economic and technical assistance are also in significant number.
Citizens from 92 countires including China (4629), UK (328), USA (203), India (144), South Korea
(125), Australia (78), Japan (69), Italy(67), France (58), Philipines (53) have got work permit
according to data from department of labour and occupational saftey. There were total of 6460 work
permit issued and renewd by the department as of 2020 Nov 8. By work classification,
telecommunication and air service has the highest number of foreign works who have received work
permit form GoN.

The department has started issuing work permit to foreign citizens from the fiscal year, 2069/70
when it provided work permit to 984 foreign citizens. Likewise, the figure was put at 719 in the FY
2070/71 BS, 2019 in the FY 2071/72 and 1472 in the FY, 2072/73. Similarly, the Department during
the FY 2073/74 issued 1,324 (new) work permits with the renewal of 648. In the following year, the
number of newly issued work permits was 1,608 with the renewal of 962 followed by 1,119 new and
862 renewed ones in the FY 2075/76.   

Ruels and regulation on Hiring Foreign Employees

Labour Act

the general terms of hiring of foreign nationals by a local entity that the foreign national can only be
hired if local skill sets are not available for the job. In additional to the general rule of hiring of the
foreign nationals the New Labor Act also provides certain new provisions such as flexibility on work
permit for certain entities the language of employment agreement, repatriation of salary and terms
and condition of service etc. The provisions are briefly summarized below.

General Provision:

No foreign nationals can be engaged in work without having obtained the work permit from the
Department. Prior to engaging a foreign national in work, the entity must publish an advertisement
in national level Daily Newspaper to fill the vacant posts by Nepali citizens. If no application is
submitted or if no local skill set is available for any work after the vacancy publication foreign
national can be hired for the work with the approval of Labor Department.

Entity with foreign investment or operating on foreign aid: Work permit to the foreign nationals
hired as the chief executive may be provided by simply recording them at the Department. The work
permit may also be provided in the same manner to the employees for such number as prescribed.
Work Permit for technicians for short period: Technicians engaged for less than three (3) months to
carry out repairing of any machinery or installing new technology or similar casual work may be
provided work permit simply by recording in the Labor Department.

GoN has put a cap on the number of foreign workers that are allowed in a company. Only 5% of the
total workforce in any Nepalese enterprise are allowed to work. This cap is not a applicable in the
case where the Nepali government has signed agreement with foreign governments or foreign
companies regarding the number of foreign workers. Likewise, foreign diplomats are exempt from
such restrictions.

If any foreign worker is found to have worked in any enterprise without taking work permit or
without documentation, the Department of Labor, an agency under the Ministry of Labor and
Employment can order the concerned enterprise to remove such foreign worker immediately, the
regulation states.

As per the regulation, the charging fee of obtaining work permit has also been increased. A foreign
worker has to pay 15,000 Nepali Rupees (139 U.S. dollar) for getting work permit for up to six
months and 20,000 Nepali Rupees (185 U.S. dollar) to receive work permit for more than six months.

Employment Agreement

No foreign national can be engaged in work without an employment agreement entered into either
in language understandable by the foreign national or in English. Unless otherwise provided in the
agreement, the employment agreement continues for 3 years.

A work permit shall be compulsory for all foreign nationals except for foreign nationals having
diplomatic immunity or for those exempted from work permit under the treaty or agreement
entered into with the Government of Nepal. (Section 22 & 23)

Repatriation of Income: The foreign nationals can repatriate their income in convertible foreign
currency.

Work Permit Exemption:  The foreign nationals having diplomatic immunity or the foreign nationals
who are exempted from work permit under the treaty or agreement entered into with Nepal
government are exempted from work permit requirement.

See text form Nepal tax online


Reference

http://www.dol.gov.np/en

https://english.khabarhub.com/2020/17/69246/

https://risingnepaldaily.com/main-news/workers-from-87-countries-in-nepal-highest-number-from-
china

https://www.spotlightnepal.com/2018/06/02/nepali-government-puts-cap-foreign-workers-work-
nepal/

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