Obtaining a Work Permit in Nepal (2025 Update)

Introduction

Nepal has increasingly become a regional hub for international investment, development projects, and cross-border employment. From hydropower and infrastructure to IT and development cooperation, foreign nationals are contributing significantly to Nepal’s growing economy. However, before engaging in any kind of employment in Nepal, every foreign national must legally obtain a work permit in Nepal from the Department of Labor and Occupational Safety (DoL).

Employers, are responsible for verifying that all foreign workers have obtained the necessary permits before starting employment. Failure to comply with this requirement can result in severe fines, deportation, and sanctions for both the employer and the foreign employee.

The process of obtaining a work permit in Nepal is essential for ensuring compliance with the law. Foreign workers must be aware of their responsibilities in obtaining a work permit in Nepal to avoid legal issues.

Understanding the requirements for obtaining a work permit in Nepal is crucial for foreign nationals looking to work legally in the country.

This comprehensive guide explains the step-by-step process of obtaining a work permit in Nepal, including governing laws, competent authorities, procedures, applicable fees, validity, and consequences of non-compliance all as per the Labor Act 2017, Labor Rules 2018, and Foreign Citizen Labor Permission Directive 2019.

Governing Laws for Work Permits in Nepal

The issuance, renewal, and regulation of work permits in Nepal are governed by the following laws and regulations. These legal instruments collectively define the procedures, eligibility criteria, and compliance standards for both employers and foreign employees.

1. Labor Act, 2017 (2074) – The principal legislation that governs employment relationships, including the recruitment of foreign nationals.
2. Labor Rules, 2018 (2075) – Provides detailed procedures and administrative mechanisms for implementing the Labor Act.
3. Foreign Citizen Labor Permission Directive, 2019 (2075) – Specifically governs the employment of foreign nationals and procedures for obtaining and renewing work permits.

Governing Authorities

Obtaining a work permit in Nepal involves multiple government authorities, each responsible for specific approvals. These institutions work in coordination to ensure that every foreign employment complies with national labor laws, immigration policies, and public security requirements.

S.N	Governing Authorities	Regulatory Approval
1	Department of Labor and Occupational Safety (DoL)	Issues the work permit for foreign nationals.
2	Ministry of Home Affairs (MoHA)	Issues a No Objection Letter (NOC) when required.
3	Department of Immigration (DoIM)	Issues the non-tourist working visa based on DoL’s recommendation.

In this guide, we will detail the crucial steps for obtaining a work permit in Nepal, ensuring all foreign workers are informed of the necessary procedures.

Grounds for Obtaining a Work Permit

TheDepartment of Laborgrants work permits to foreign nationals under two main conditions:

a) Unavailability of Skilled Manpower

If no suitable Nepali candidates are available for a specific role, the employer can request permission to employ a foreign national by demonstrating the unavailability of local skilled manpower.

b) Obtaining Work Permit by Direct Recording

In special cases, such as companies with foreign investmentor foreign aid projects, or for short-termtechnical or emergency work, a work permit can be obtained directly through recording without the requirement of advertising for local candidates.

S.N.	Grounds	Details
1	Unavailability of Skilled Manpower	Employer must demonstrate that no qualified Nepali worker is available.
2	Special Privilege (Foreign Investment/Foreign Aid Projects)	Up to 3 foreign employees can be directly recorded and approved without skill-availability verification.
3	Short-Term Technical Work	Technicians visiting Nepal for up to 3 months for installation, repair, or emergency work.

Exceptions (Who Doesn’t Need a Work Permit)

Certain foreign nationals are exempted from the requirement of obtaining a work permit in Nepal:

1. Diplomatic and Consular Personnel: Those entitled to diplomatic immunity under international conventions.
2. Treaty-Based Exemptions: Foreigners exempted under treaties or bilateral agreements signed with the Government of Nepal.

Work Permit Process

This is the general procedure followed by most companies hiring foreign professionals or experts. The process ensures that the engagement of foreign nationals contributes to skill transfer and capacity building within Nepal’s workforce.

Step 1: Publish Job Vacancy

The employer must advertise the vacant position in at least one national daily newspaper and also post it on the official online portal of the Department of Labor.
This ensures transparency and demonstrates that efforts were made to hire local manpower first.

Step 2: Submission of Application

After 15 days of advertisement, if no qualified Nepali candidates are available, the employer submits a formal application to the Department of Labor and Occupational Safety (DoL) in the prescribed format.

Step 3: Document Submission

The employer must attach all required documents (listed below) along with the application.

Step 4: Review and No Objection Letter

The DoL reviews the application and may request a No Objection Letter (NOC) from the Ministry of Home Affairs, confirming that the government has no objection to employing the foreign worker.

Step 5: Issuance of Work Permit

If all conditions are met and documents verified, the DoL issues a Work Permit Certificate.

Step 6: Obtain Non-Tourist Visa

Based on the work permit, the foreign national can then apply for a non-tourist visa (working visa) at the Department of Immigration.

Documents Required for Work Permit Application

The following documents are required to obtain a work permit in Nepal under the unavailability of skilled manpower category:

S.N.	Documents Required
1	Application in prescribed format
2	Copy of advertisement (national daily & online portal)
3	Valid passport (minimum 6-month validity)
4	Bio-data / personal details of the foreign national
5	Employer’s tax clearance certificate
6	Qualification details of Nepali applicants (if any applied)
7	Action plan to replace foreign workers with trained Nepali citizens
8	No-objection letter from MoHA (if applicable)
9	Company registration certificate, MOA, and AOA
10	Latest labor audit report
11	Social Security Fund registration certificate (if applicable)

Timeline for Obtaining a Work Permit

The average timeline for completing the entire work permit process in Nepal ranges between 30 to 45 days, depending on the accuracy of documentation, inter-departmental coordination, and whether a No Objection Letter is required from MoHA.

In complex cases or during peak administrative periods, this timeframe can extend slightly.

Work Permit by Direct Recording

Nepal’s labor laws also recognize the need for flexibility for foreign-funded companies and urgent technical tasks. The following categories are eligible for direct recording at the DoL without going through the standard vacancy-publication process.

Local Subsidiary with Foreign Investment / Foreign Aid Projects

Under Rule 13 of the Labor Rules 2018, any entity operating under foreign investment or foreign aid is allowed to hire up to three (3) foreign employees directly through recording.

This privilege enables quicker processing without proving the unavailability of local workers.

Short-Term Technical Work (Casual or Emergency Work)

According to Rule 24 of the Labor Rules 2018, technicians entering Nepal for a period not exceeding three months to install, maintain, or repair machinery or technology can receive work permits through direct recording.

This simplified procedure supports foreign engineers, technicians, and consultants engaged in short-term assignments.

Government Fees for Work Permit

The Government of Nepal has prescribed the following official fees payable to the Department of Labor:

Duration of Employment	Government Fee (NPR per person)
Up to 6 months	NPR 15,000
Above 6 months	NPR 20,000

These fees are non-refundable and must be paid before the issuance or renewal of the work permit.

Maximum Number of Foreign Employees Allowed

To protect the domestic labor market, Nepal imposes a limit on the number of foreign nationals that can be employed by a company.

Condition	Maximum Number of Foreign Employees
If there is a special agreement between employer and the Government of Nepal	As per the agreement
In all other cases (without special agreements)	Up to 5% of total workforce

This ensures a balance between allowing foreign expertise and prioritizing employment opportunities for Nepali citizens.

Validity and Renewal of Work Permit

The validity period of a work permit depends on the type and level of skill of the foreign national:

Type of Foreign Worker	Validity Period
High-skilled or technical expert	Up to 5 years
Other foreign workers	Up to 3 years

In practice, work permits are usually issued for one year at a time and must be renewed annually. Employers must submit renewal applications at least 30 days before expiry to avoid penalties or work disruption.

Consequences of Non-Compliance

Operating in Nepal without a valid work permit is a serious violation of labor and immigration laws.

If a foreign national is found working without authorization:

• The DoL may order immediate termination of employment and removal of the foreign worker.
• The employer may face a fine up to NPR 200,000, depending on the number of unpermitted foreign employees.
• If the employer continues to employ the foreigner after punishment, an additional fine of NPR 5,000 per person per monthwill be imposed.

These penalties emphasize the importance of strict compliance with labor and immigration procedures.

Conclusion

Obtaining a work permit in Nepal is a mandatory legal requirement for all foreign nationals intending to work in the country. This process, while structured, demands careful preparation, accurate documentation, and strict compliance with laws and deadlines surrounding obtaining a work permit in Nepal.

Employers must ensure transparency, advertise vacancies properly, and submit complete applications to the Department of Labor. Once the work permit is issued, the foreign employee must secure a non-tourist visa from the Department of Immigration to begin employment legally.

By following the correct procedures under the Labor Act 2017, Labor Rules 2018, and Foreign Citizen Labor Permission Directive 2019, both employers and employees can ensure full compliance and avoid legal complications.