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Nepal Public Holiday Regulations
In Nepal, employees are entitled to paid public holidays as per the Labour Act 2017 and directives issued by the Ministry of Labour, Employment, and Social Security. Public holidays are a mix of national, religious, and regional observances, reflecting the country’s diverse cultural and religious heritage. While some holidays apply nationwide, such as Dashain and Tihar, others vary by religion, ethnicity, or province.
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List of Public Holidays in Nepal in 2025
The following table lists the major national public holidays in Nepal for 2025. Regional or religious holidays, such as Lhosar, Eid, or Christmas, may also apply depending on an employee’s background or workplace location.
Do Employers Have to Provide Paid Leave on Public Holidays?
Yes. Under Nepali labor law, employers must provide paid leave on public holidays recognized by the government. These days are not deducted from an employee’s annual leave entitlement, they are additional paid rest days.
Full-time employees receive full pay for these holidays, even if they fall on a regular workday. For part-time workers, payment depends on whether the holiday falls on a scheduled working day. If a part-time employee was due to work that day, they are entitled to compensation in line with their normal pay rate.
Legal Penalties for Not Providing Paid Holiday Leave
Failure to comply with public holiday provisions can lead to fines, administrative sanctions, or legal claims under the Labour Act. Employers who withhold pay or force employees to work without proper compensation on public holidays may face fines up to NPR 100,000 (approx. USD 750) and additional compensation orders from the Labour Office.
Non-compliance is most common among informal or part-time employment arrangements, especially in sectors like retail, tourism, and hospitality. Employees may file grievances with the Labour Relations Committee or pursue legal action through the Department of Labour. To stay compliant, employers should define holiday entitlements in employment contracts, track observed holidays by region, and maintain accurate payroll records.
How Do Holidays Affect Overtime Thresholds?
If employees work on a public holiday, they are entitled to overtime pay at twice the regular hourly rate under Nepal’s labour law. Working on these days is considered exceptional and should be compensated separately from regular overtime. Employers must also provide an alternative rest day if continuous operation is necessary, such as in healthcare, hospitality, or essential services.
Stay 100% Compliant with Leave Regulations Using Playroll
Managing public holidays and leave entitlements across countries like Nepal is complex, especially when balancing national and regional observances. Leave entitlements, from public holidays to annual leave and special allowances, vary widely between countries and sectors.
Playroll ensures your business stays compliant by automatically tracking every update in local labor law and applying the correct leave entitlements for each employee, wherever they work. With Playroll, you forecast costs accurately, simplify payroll, and ensure that your team in Nepal receives the right pay and time off. Stay compliant, confident, and people-focused with Playroll managing compliance for you.
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