Leave Rules Under Nepal Labour Act: Annual, Sick, Maternity, and Public Holidays
Leave Rules in Nepal determine the extent of leave that each worker can avail for a year. There is a need to have clarity on these entitlements, both for the employer and the employee. Payroll problems can frequently arise because of confusion, conflicts, and unnecessary legal issues. The law base of Private Sector Employment is theLabour Act 2074 and the Labour Rules, 2075. There is no distinction on the basis of the number of employees for these laws to apply to almost any organisation.
Fast Onboarding
Secure Cloud-Based
Employee Self-Service
Annual leave: 90 days max
Maternity: 98 days
Sick leave: 12 days
Holidays: 13 days
Prior to 2017, the previous legislation only applied to bigger facilities. The general requirements now apply to a small shop with one employee. Knowing the different types of statutory leaves can aid HR teams in creating equitable and compliant leave policies. It also aids employees to be aware of the amount they can claim without any argument. The entitlements to annual and sick leave, as well as maternity, paternity and public holiday leave are explained simply on this page. In addition, it includes information on accumulation limits, encashment and helpful tips for employers. Read through each one of them carefully, as errors in the leave records can add up to cost.
Overview of Leave Rules Under the Nepal Labour Act
In 2017, Nepal Labour Act replaced the previous Labour Act 2048. Introduced some changes that impact on leave management day-to-day. Period of maternity leave extended and paternity care leave was made a legal entitlement. The new leave announcement allows up to certain limits of home leave, and sick leave.
There’s one thing to be noted from each employer. Sick leave, mourning leave andmaternity leave are considered as rights. All other leaves are considered a “facility” leave. This means employers can approve, refuse and/or reschedule them as needed for business.
Annual (Home) Leave in Nepal
The most equivalent to annual leave in Nepal is home leave. It is paid and earned and is fully service based. 1 day home leave for every 20 days of work. This typically equals approximately thirteen days when spread out over a year.
Educational institutions employees typically do not have the right to home leave. They are already given long breaks during the summer or winter. Home leave can be built up to a maximum of 90 days. If a player’s cards go over that threshold, he or she is likely to be encashed instead of lost.
Sick Leave in Nepal
All workers receive 12 days of paid sick leave each year. Employers calculate sick leave pay based on the length of service for workers with one year or less of service. Workers can accumulate unused sick leave up to a maximum of 45 days.
Here, medical proof is a must. The employer shall be able to ask for a registered doctor’s certificate if a worker is away for more than three days. Generally, a brief notice will suffice for shorter absences. Documentation is important to have when there’s a conflict in the future.
Maternity and Paternity Leave in Nepal
In total, women employees can take 14 weeks (or 98 days) of leave. The first 60 days are 100% paid. The balance of the time is unpaid. If a physician recommends additional rest for the mother or child, an additional month should be provided by the employer. This extra month may be taken as a vacation or credited as other leave.
During the confinement of their wives male workers get 15 days fully paid paternity care leave. Employers must make a note of these dates. Unlike other types of leave, there is no discretion with respect to the granting of maternity and paternity leave.
Weekly Holidays and Public Holidays
All employees receive one day of leave each week. Workers also get 13 paid public holidays a year. For the female workers, it is fourteen since International Women’s Day was added. May Day is also on the regular list.
Numerous festivals are held on the lunar calendar in Nepal. The exact dates are thus variable each year. The employers must post the annual list of holidays as far in advance as possible, to allow teams to organise around the holidays.
If a worker is required to work a holiday/weekly off they are entitled to substitute leave. But employers have a definite timeframe within which to provide that substitute in general. The overtime provisions also may allow workers to receive additional compensation.
Leave Accumulation and Encashment
Most calculation errors occur when HR teams add these amounts together. Employees can accumulate up to 90 days of home leave and 45 days of sick leave. Employers usually pay employees for their unused leave when they leave the job, using their daily basic salary rate.
For example, if an employee has 45 days of unused sick leave, the employer pays the employee for all 45 days when the employee leaves the job. Those who do not abide by the caps could be overpaying or underpaying their employees. These errors can all result in complaints and audits. Therefore, careful tracking of balances month by month is key to the Leave Rules in Nepal being accurate.
Practical Tips helpful for Employers
The first step is to have a writtenleave policy. It should be a reflection of the statutory entitlements and make the approval process understandable. Keep it brief, concise and readily available.
Then make note of each time they miss class in a reliable manner.Then document each time they miss class in a reliable system. When numbers start getting larger, the spreadsheet is frequently no longer up to the task. Accrual, carry-forward and encashment are minimized in errors with automated tools. They also provide fully visible work balances for employees.
Lastly, yearly review the policy. Government notices and holiday lists are updated – your rules need to be updated too. Effective Leave Rules implementation in Nepal helps to establish trust and minimize legal liability.
Frequently Asked Questions (FAQ)
There are 13 Public Holidays for workers annually. The number of female workers is 14, as it is plus International Women's Day.
Staff receive 12 paid sick days each year. Can build up unused days up to 45 days. Medical certificates will be required for absences of more than three days.
Maternity is for a 14-week period. First 60 days PAID. The remainder of the time is non paid, and may be extended by one additional month as advised by the medical professional.
Yes, in many cases. Home leave is defined as a facility, and can therefore be denied or postponed by an employer. Sick leave, mourning leave and maternity leave is not denied.
Ninety days home leave is allowed. The fixed rates are mostly cashed at rates exceeding that limit.
Yes. Fifteen days are granted to men to take fully paid paternity care leave when their wife has a baby.
Trusted by 1600+ Organisations
Why to Choose Hajir?
Efficiently manage payroll, leave, and communication to streamline
HR processes and enhance employee satisfaction.
HR processes and enhance employee satisfaction.
Cost Effective Solution
Automates manual processes, saving businesses on administrative costs and resources.
Cloud-Based Accessibility
Access your data anytime, anywhere—perfect for remote and hybrid work environments.
Customizable Features
Adaptable to your business needs, with features like shift scheduling, WPS compliance, and custom reporting.
User-Friendly Interface
Designed for simplicity, ensuring a smooth experience for both HR teams and employees.
Data Security & Compliance
Robust security measures protect sensitive employee information, meeting regional compliance standards.
Quick Implementation
Hassle-free setup and onboarding process that gets your HR operations up and running in no time.
Scalability
Whether for small businesses or large enterprises, it can scale to meet the needs of any organization.
Boost Employee Productivity
With automated processes and real-time updates, Hajir helps you focus on what matters most—growing your business
12h/6d Customer Support
Dedicated support ensures that your HR operations run without a hitch.
Download the App and Get Started
Get the app from Play Store and App Store
