Nepal’s Labour Act 2007 establishes strict limits on working hours, overtime, and rest periods that every employer must follow. The standard work day is 8 hours, the standard work week is 48 hours, and employees are entitled to at least one day of rest per week. Overtime is capped at 2 hours per day, must be paid at 1.5× the normal rate, and requires the employee’s consent. Violating these rules exposes your business to penalties from the Department of Labour.
This article breaks down the Nepal Labour Act shift rules into practical guidance you can apply to your roster immediately.
Key Takeaways
- The maximum working day in Nepal is 8 hours, with a maximum of 48 hours per week.
- Overtime is capped at 2 hours per day and must be paid at 1.5× the normal hourly rate.
- Employees are entitled to at least one day of rest per week, which must be a full 24-hour period.
- Night work (between 10:00 PM and 4:00 AM) requires special provisions and additional pay.
- The Labour Act applies to all establishments with 10 or more employees — but best practice is to comply regardless of size.
The Nepal Labour Act 2007: Working Hours Provisions
The Labour Act 2007 (Nepal) is the primary legislation governing employment conditions. The working hours provisions are found in Sections 10–14:
Standard Working Hours
| Provision | Requirement |
|---|---|
| Maximum daily hours | 8 hours |
| Maximum weekly hours | 48 hours |
| Standard work week | 6 days (Sunday is the usual rest day) |
| Break entitlement | 1 hour after every 4 hours of continuous work |
| Weekly rest | At least 1 full day (24 hours) per week |
Overtime Rules
| Provision | Requirement |
|---|---|
| Maximum daily overtime | 2 hours |
| Maximum weekly overtime | 12 hours (varies by interpretation) |
| Overtime pay rate | 1.5× the normal hourly rate |
| Employee consent | Required for overtime work |
| Employer record | Must maintain overtime records |
Key restriction: Overtime cannot exceed 2 hours per day under any circumstances. If your business requires more than 10 hours of work per day, you need to restructure the shift pattern — you cannot simply add overtime.
Night Work
| Provision | Requirement |
|---|---|
| Night period | 10:00 PM to 4:00 AM |
| Night work pay | Additional allowance (varies by agreement) |
| Special provisions | Required for women working night shifts |
| Health assessment | Recommended for regular night workers |
Building a Compliant Roster
Standard 8-Hour Shift Pattern
The simplest compliant pattern:
| Shift | Time | Hours |
|---|---|---|
| Morning | 9:00 AM – 5:00 PM | 8 hours (including 1-hour break) |
| Afternoon | 12:00 PM – 8:00 PM | 8 hours (including 1-hour break) |
Effective working time: 7 hours per shift (after deducting the 1-hour break).
Two-Shift Pattern
For businesses that need to extend operations beyond 8 hours:
| Shift | Time | Hours |
|---|---|---|
| Day | 8:00 AM – 4:00 PM | 8 hours (including break) |
| Evening | 4:00 PM – 12:00 AM | 8 hours (including break) |
Note: The evening shift ends at midnight, which enters the night work period (10:00 PM – 4:00 AM). Employees on this shift are entitled to night work provisions.
Compliant 6-Day Work Week
| Day | Hours | Break | Effective Hours |
|---|---|---|---|
| Sunday | OFF | — | 0 |
| Monday | 9:00–17:00 | 1 hour | 7 |
| Tuesday | 9:00–17:00 | 1 hour | 7 |
| Wednesday | 9:00–17:00 | 1 hour | 7 |
| Thursday | 9:00–17:00 | 1 hour | 7 |
| Friday | 9:00–17:00 | 1 hour | 7 |
| Saturday | 9:00–17:00 | 1 hour | 7 |
| Total | 42 effective hours |
This pattern provides 42 effective working hours per week — well within the 48-hour limit, with buffer for occasional overtime.
Common Violations and How to Avoid Them
Violation 1: Exceeding 8 Hours Without Overtime Pay
Some employers expect employees to work beyond 8 hours as part of their normal duties. This violates the Labour Act. If an employee works more than 8 hours, the additional time must be classified as overtime and paid at 1.5×.
Fix: Track actual hours worked, not just scheduled hours. Use a time clock or digital attendance system.
Violation 2: Mandatory Overtime Without Consent
The Labour Act requires employee consent for overtime work. Employers cannot compel employees to work overtime as a condition of employment.
Fix: Obtain written consent for overtime at the time of hiring. Create a voluntary overtime sign-up process for specific shifts.
Violation 3: No Weekly Rest Day
Some businesses rotate rest days or allow employees to “choose” their rest day informally. The Labour Act requires at least one full rest day per week — a 24-hour period without work.
Fix: Fix the rest day in the roster. Sunday is the standard rest day in Nepal, but any day can be the rest day as long as it is consistent.
Violation 4: Inadequate Breaks
The 1-hour break after every 4 hours of continuous work is a legal requirement, not a suggestion. Skipping breaks to extend working time violates the Act.
Fix: Schedule breaks explicitly in the roster. The break must be uninterrupted and not spent working.
Violation 5: Night Work Without Special Provisions
Employees working between 10:00 PM and 4:00 AM are entitled to additional provisions, including higher pay and (for women) special safety measures.
Fix: If you roster employees for night shifts, ensure the pay rate includes a night work allowance and that safety provisions are in place.
Overtime Calculation Example
Here is how to calculate overtime pay under the Labour Act:
| Component | Calculation |
|---|---|
| Monthly salary | NPR 50,000 |
| Daily rate | NPR 50,000 ÷ 26 working days = NPR 1,923 |
| Hourly rate | NPR 1,923 ÷ 8 hours = NPR 240 |
| Overtime rate (1.5×) | NPR 240 × 1.5 = NPR 360/hour |
| Overtime for 2 hours | NPR 360 × 2 = NPR 720 |
If an employee works 2 hours of overtime every working day for a month (26 days):
| Overtime Calculation | Amount |
|---|---|
| Daily overtime (2 hrs × NPR 360) | NPR 720 |
| Monthly overtime (26 days × NPR 720) | NPR 18,720 |
This is a significant additional cost that must be budgeted for — and tracked accurately for compliance.
Record-Keeping Requirements
The Labour Act requires employers to maintain records of:
| Record | Retention Period |
|---|---|
| Daily attendance | 2 years minimum |
| Overtime hours and pay | 2 years minimum |
| Rest days provided | 2 years minimum |
| Night work hours | 2 years minimum |
These records must be available for inspection by the Department of Labour upon request.
Special Provisions for Women
The Labour Act includes specific provisions for women workers:
| Provision | Requirement |
|---|---|
| Night work | Permitted with additional safety measures and higher pay |
| Maternity leave | 98 days paid (52 days at full pay, 46 days at half pay) |
| Harassment prevention | Employer must have a policy and complaint mechanism |
| Equal pay | Equal pay for equal work |
If you roster women for night shifts, ensure you have the required safety provisions — including safe transport and a supportive working environment.
How Leave Balance Helps
Leave Balance natively supports Nepal’s Bikram Sambat (BS) calendar and the Labour Act 2007 requirements. The platform tracks:
- 8-hour day and 48-hour week compliance
- Overtime tracking and 1.5× rate calculations
- Weekly rest day verification
- Night work provisions
- Nepali public holidays (Ghatasthapana, Dashain, Tihar, etc.)
- SSF integration for statutory reporting
For businesses operating in Nepal, Leave Balance provides a compliance-ready leave management system that aligns with the Labour Act without requiring manual calculations.
leave emails? Track your employee's leave with Leave Balance
Frequently Asked Questions
What is the maximum number of hours an employee can work in Nepal?
The maximum is 8 hours per day and 48 hours per week. Overtime is limited to 2 hours per day, making the maximum total 10 hours per day. Overtime must be paid at 1.5× the normal rate and requires employee consent.
Is Sunday a mandatory rest day?
Sunday is the customary rest day in Nepal, but the Labour Act requires at least one day of rest per week — it does not specify which day. You can choose any day as the rest day, but Sunday is the standard and most culturally appropriate choice.
Do part-time employees have the same protections?
Yes. The Labour Act applies to all employees regardless of whether they work full-time or part-time. The 8-hour limit and overtime provisions apply equally.
What happens if I violate the working hours rules?
The Department of Labour can impose penalties, including fines and orders to compensate affected employees. Systematic violations can result in more severe penalties, including closure orders for the establishment.
How does Leave Balance handle Nepali calendar dates?
Leave Balance uses the Bikram Sambat (BS) calendar natively, displaying leave periods and public holidays in BS dates alongside the Gregorian calendar. This aligns with Nepal’s fiscal year (Shrawan–Ashad) and makes leave tracking intuitive for Nepali businesses.