Nepal (NP)
Nepal is a landlocked Himalayan nation between India and China, home to eight of the world's ten highest peaks including Mount Everest (8,849m).
2026 Annual Changes — Nepal
Updated thresholds, benefits, and regulatory changes effective this year.
Nepal 2026 planning uses FY 2082/83 (mid-July 2025 to mid-July 2026) rules: minimum wage increased 13% effective July 2025, SSF enrollment became mandatory for all formal employers from FY 2082/83 with a raised salary ceiling, income-tax slabs unchanged from the prior year, 13% VAT, and continuing tourist visa fees. Work-permit compliance and tax-resident status are the main administrative focus areas for expats.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Minimum Wage National minimum wage increased by 13% effective 1 Shrawan 2082 BS (17 July 2025), the first increase in two years. | NPR 19,550/month: NPR 12,170 basic salary + NPR 7,380 dearness allowance. Daily rate: NPR 754. Hourly rate: NPR 101. | NPR 17,300/month (previous minimum wage) | 2025-07-17 |
| Income Tax — Slabs (FY 2082/83) Personal income-tax slabs for FY 2082/83 are unchanged from FY 2081/82. The first slab applies a 1% Social Security Tax rather than ordinary income tax for most employees. | Single individual: 1% up to NPR 500,000; 10% on NPR 500,001–700,000; 20% on NPR 700,001–1,000,000; 30% on NPR 1,000,001–2,000,000; 36% on NPR 2,000,001–5,000,000; 39% above NPR 5,000,000. Married couple first slab: NPR 600,000 (1%). | — | 2025-07-17 (FY 2082/83) |
| VAT — Standard Rate Standard VAT rate unchanged at 13%. A multi-rate VAT system was proposed in the 2025-26 Budget but remains pending implementation as of mid-2026. | 13% standard VAT. Registration thresholds: NPR 5,000,000 turnover/year for goods; NPR 3,000,000 for services and mixed businesses. | — | 2026 (ongoing) |
| Social Security Fund (SSF) — Contribution Rates SSF contributions remain the standard formal-sector payroll deduction. Total combined contribution is 31% of basic salary. | 11% employee contribution (10% provident fund + 1% social security tax) + 20% employer contribution on basic salary. Contributions must be deposited by the 15th of each Nepali month. | — | 2025-07-17 (FY 2082/83) |
| SSF — Mandatory Enrollment from FY 2082/83 SSF enrollment became mandatory for all formal employers and employees from the start of FY 2082/83 (17 July 2025), removing the previous voluntary/phase-in structure. | All formal employers must register with SSF and remit contributions from FY 2082/83 onward. New employees must be enrolled before the 15th of the following month. Penalty: 10% interest on late deposits. | — | 2025-07-17 |
| SSF — Maximum Taxable Salary Ceiling Maximum monthly salary subject to SSF contributions raised for FY 2082/83, increasing the ceiling for both employee and employer contributions. | NPR 350,000/month maximum taxable basic salary for SSF contribution purposes | NPR 300,000/month | 2025-07-17 |
| Tourist Visa Fees Tourist visa on-arrival fees unchanged for 2025/2026. All categories include multiple-entry privileges. | USD 30 for 15 days; USD 50 for 30 days; USD 125 for 90 days. Extension fee: USD 3/day. Late-stay/overstay fee: USD 5/day. Tourist stay maximum: 150 days per calendar year. | — | 2026 (unchanged) |
| Work Permit and Work Visa Foreign nationals working in Nepal require a Department of Labour and Occupational Safety (DLOS) work permit, line-agency recommendation and Department of Immigration work visa — three distinct steps. | Work permit application via DLOS (dol.gov.np); line-agency recommendation from the relevant ministry; work visa from Department of Immigration (immigration.gov.np). Tourist visa does not authorise paid work. Penalty for illegal work: fines, visa cancellation and deportation. | — | 2026 (ongoing) |
| Income Tax — PAN Filing Deadline (FY 2082/83) Individual income-tax returns for FY 2082/83 (ending mid-July 2026) are due within three months of fiscal year end unless extended by the Inland Revenue Department. | Deadline approximately mid-October 2026 (Kartik 2083 BS) for individuals; payroll withholding (TDS) remitted monthly. Confirm exact date with IRD (ird.gov.np). | — | 2026-10 (approx.) |
| NPR–INR Exchange Rate Peg Nepal Rastra Bank maintains a fixed peg between the Nepalese rupee and the Indian rupee, a structural monetary-policy constant that affects all FX planning for Nepal-based expats. | NPR 1.60 = INR 1.00 (fixed peg, unchanged) | — | 2026 (ongoing) |
January Checklist
Actions to take each January when new rates take effect.
- 1
Track tourist visa days used in the 2026 calendar year — maximum 150 days.
- 2
Check SSF registration and contribution payslip line from the start of FY 2082/83; confirm the new 31% split is correctly applied.
- 3
Review PAN/TDS certificates and confirm withholding amounts before mid-October filing deadline.
- 4
Budget for air purifiers, masks and healthcare during Kathmandu Valley winter pollution peak (typically November–February).
- 5
Plan Dashain (19–21 October 2026) and Tihar (around 11 November 2026) travel and procurement early.
- 6
Review home-country tax residence status and pension contribution records for the year.
- 7
Confirm medical evacuation and helicopter insurance is active with written altitude/Nepal-specific coverage.
Where to Track Annual Changes
-
Inland Revenue Department Nepal — ird.gov.np — income tax, VAT, TDS and PAN
-
Social Security Fund — ssf.gov.np — SSF enrollment, contributions and benefit rules
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Department of Immigration — immigration.gov.np — tourist visa, work visa and residence
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Department of Labour and Occupational Safety — dol.gov.np — work permits
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Nepal Rastra Bank — nrb.org.np — monetary policy, FX rules and remittance regulations
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Ministry of Finance / Budget — mof.gov.np — annual Budget and tax-slab announcements
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Nepal Gazette — nepalgazette.gov.np — official government notices
Nepal's fiscal year runs mid-July to mid-July (Nepali calendar). FY 2082/83 covers approximately 17 July 2025 to 16 July 2026. Income-tax return for FY 2082/83 is due approximately mid-October 2026. SSF mandatory enrollment from July 2025 is a major compliance change — verify with a Nepal-qualified accountant or payroll adviser. Budget proposals can alter VAT and tax rules after the annual Budget speech.
Annual Changes
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