Average Salary in Nepal
How much money does an employee in Nepal earn?
In Nepal, the average monthly wage for a worker is roughly 80,700 NPR. This amount may seem low to those living in more developed countries, but it is actually quite high for a country that is still developing.
The average salary in Nepal is expected to continue increasing in the coming years as the economy grows. This growth will bring with it new opportunities for workers and increased prosperity for the country as a whole.
Those looking to move to or invest in Nepal should keep these trends in mind, as they are likely to only become more pronounced in the coming years.
Salary Distribution in Nepal
Monthly salaries in Nepal vary between 20,400 and 20,000 NPR. The graph above displays the salary distribution in Nepal. It can be seen that the majority of people earn between 20,400 and 20,000 NPR per month.
This is likely to reflect the average income in the country. There are a few people who earn more than this, and a few people who earn less. This provides a relatively accurate picture of how most people in Nepal are paid.
The median monthly wage is 84,000 NPR, which implies that half of the population (50 percent) earns less than 84,000 NPR and the other half earns more than 84,000 NPR.
This makes it difficult for many people in Nepal to make a living and afford basic necessities. The low wages also discourage people from working hard or taking risks in their businesses, which further suppresses the economy.
In order to improve the standard of living for all Nepalese citizens, the government and private sector need to work together to increase the median wage.
This could be done through measures such as increasing the minimum wage, providing incentives for companies to pay their employees more, or improving education and training so that workers are more productive.
By raising the median wage, the government would be reducing poverty and improving the living conditions of everyone in Nepal.
25% of the population earns less than 47,000 NPR, while 75% earn more than 47,000 NPR.
The above statistic shows that there is a significant difference in the income of the population. This clearly shows that there is a large disparity between the rich and the poor in Nepal.
This needs to be addressed if Nepal wants to reduce poverty and improve the standard of living for its citizens.
What is the difference between median pay and the average salary?
The median pay is in the middle of a list of wages. For example, if someone has four employees and their salaries are $5,000, $7,000, $9,000, and $10,000 respectively then the median salary is around 8500.
The average salary is obtained by adding up all the salaries and dividing them by how many people there are in total.
So to get the average salary, you would add up $5,000 + $7000 + $9000 + $10,000 and then divide by 4 to get an average of around $8750.
An easy way to remember the difference is that if your boss asked you what the median pay was for your company, he probably wouldn’t care about random fluctuations in how much money each person makes.
But if they wanted the average salary, notice how it has nothing to do with someone getting paid twice as much as another employee or anything like that; it’s just the total combined salaries divided by however many people work there.
Salary Comparison in Nepal by Years of Experience
How does an individual’s income increase over time in Nepal?
In Nepal, employees typically get paid based on the number of years they’ve been working.
For example, someone who has 2-5 years experience might make around NPR 20000 (USD $209) per month while someone with 10 years experience might make around NPR 35000 (USD$359).
Please note that compensation does not include the employer’s matching contribution to the employee’s retirement account.
Please note that compensation does not include the employer’s matching contribution to the employee’s retirement account.
Salary Comparison in Nepal According to Education
How does your degree of education affect your salary?
In Nepal, a salary comparison has been conducted after taking education as a factor.
The study revealed that diploma holders receive the lowest salary, while degree holders receive the highest compensation followed by PGs and Ph.D. holders respectively.
Quite interestingly Bachelors’s holders have been placed at the second last position in this survey which is quite different from our thought that a bachelor’s degree is a basic requirement for a job in Nepal.
A bachelor can earn around NRS 58,000 per month while a graduate can make NRS 65,000-70,000 per month according to the report.
The report also stated that an engineer with only CPI certification makes only NRS 53,350 per month whereas an engineer who has acquired a degree in engineering can earn NRS 65,000.
Ph.D. holders are said to have the highest salary followed by Masters’s degree holders, PGs, and SLC/LC holders respectively according to the survey.
Many would-be surprised at this finding since most people believe that it is usually a Ph.D. holder who will have difficulty finding his/her job after graduation.
Nepal Salary Comparison By Gender
Male workers earn 7% more than female employees in Nepal on average across all industries.
This discrepancy may be due to a number of factors, including gender-based discrimination in the workforce.
However, despite this gap in wages, there is a growing number of women who are entering the workforce and making their voices heard.
In order to close the wage gap, it will take a concerted effort from both men and women to ensure that everyone is treated fairly and compensated appropriately for their contributions.
Nepal’s Average Annual Income Increase Percentage
In Nepal, how much does yearly pay increase cost? How often do workers get compensation increases?
In Nepal, the average yearly pay increase costs 3.5%. Workers get this increase in compensation every six months.
Workers may receive additional pay increases if their company has performed well or they have completed more education.
Take note that this pay increase also depends on the workers’ performance.
Annual Growth Rates by Industry in Nepal
- Business – 4%
- Education – 3%
- Construction – 5%
- Agriculture – 2%
- Healthcare – 3%
- Financial Services – 6%
- Hotels and Restaurants- 4%
- Government Services- 5.5%
Growing sectors in Nepal are construction, hotels and restaurants, health care, financial services, transport services. These numbers tend to shift annually.
Average Salary Increase Rates by Level of Experience in Nepal
Starting workers in Nepal receive NPR 35,000 to 40,000 annually. That is approximately US$420-$470 per month.
This amount can be compared with the average monthly salary in Nepal of about $US700/month for an entry-level position and $1200 /month and up for a mid-level position.
Nepalis working in administrative positions receive NPR 60,000 to 120,000 as yearly salary or US$7 – 14 as monthly salary.
The majority of those employed by international organizations receive salaries that match those paid to expatriates with similar levels of experience and expertise hired from abroad.
Nepal is a country with a high unemployment rate. One reason for the high unemployment rate is that foreign companies come to Nepal and hire workers who are paid at much higher rates than the unemployed people in Nepal.
This increases the average salary in Nepal, but also increases its dependency on expatriate salaries if it wants to attract more foreign investments.
Nepal Bonus Rates
How much money is granted in Nepal as a bonus and how often does it occur?
In Nepal, workers are often granted bonuses for their hard work. The amount of the bonus varies depending on the company, but it is generally a small percentage of the worker’s salary.
Bonuses are typically given twice a year, once near the end of the fiscal year and again at Christmas.
Workers can expect to receive performance-based bonuses up to four times a year. The first time they may receive one will be after doing well on their probation period, which usually lasts 30 or 90 days depending on their contract.
After that, employees should expect to receive another at the end of the fiscal year as well as a holiday bonus.
Different Types of Bonuses
Bonuses for Individual Performance
Individual performance bonuses are probably the most common type of bonus. They are given to employees who have performed well above and beyond what was expected of them.
These bonuses are usually based on a percentage of the employee’s salary, and they can be quite lucrative.
Team performance bonuses are another popular option. These bonuses are given to teams rather than individuals, and they are designed to reward everyone for a job well done.
The bonus is typically a percent of the total profit made by the company, and it can be quite substantial.
Bonuses based Company Performance
Bonuses are often given out by companies based on their performance. This can be in the form of a cash bonus, bonus shares, or other benefits.
There are a number of factors that go into a company’s performance, and so there can be a variety of reasons why a company might decide to award bonuses. Some common reasons include meeting or exceeding sales goals, hitting profit targets, or improving employee productivity.
When it comes to awarding bonuses, companies will typically have a set of criteria that need to be met in order for employees to be eligible.
This criterion may vary from company to company, but often includes things like the length of service or job position.
Bonuses Based on Achieved Goals
In many companies, bonuses are given to employees based on the goals that they achieved during the year. While this can be a motivator, it can also lead to employees feeling discouraged if they do not achieve their goals.
Additionally, it can create tension between co-workers if some people receive bonuses while others do not.
The bonuses may come with conditions, such as an employee must stay at the company for a certain amount of time after receiving the bonus or else they have to repay it.
Holiday / Year-End Bonuses
Many companies give their employees holiday or year-end bonuses. Usually, this is not something that should be negotiated for, but rather is given to all employees as a thank you present.
The bonus may be based on the number of years that the employee has been working at the company (typically after one year), or it may simply be given out to everyone.
In Nepal, the bonus given every holiday is called “Thapro” (or Tihar), which is based on the lunar calendar. This tradition requires that each employee gives their boss several types of treats, such as rice, eggs, money, clothes, etc.
The company’s managers are also expected to give good performance-based incentives for the employees who have worked well during the year.
Comparing Bonus Rates by Career Field
What qualifies a job as deserving of substantial incentives and a high salary in Nepal?
It is stated that many factors come into play when determining what jobs are deserving of a higher salary, such as the skills required for the position, the level of difficulty, and the amount of responsibility.
Nepal workers with a degree in a specialized field also have a higher salary than workers who do not.
For example, a bachelor of engineering will command a more significant starting salary in Nepal compared to a bachelor of arts or business management.
Every career tends to require various levels of training and skills across the board
The government recognizes that by increasing professionals such as engineers, teachers, and doctors in Nepal, they can help grow their country’s economy with skilled labor.
Those who choose to take on the challenges of advanced technical courses are often adequately compensated for their efforts in Nepal. By doing so, they contribute to an area in which Nepal needs support and is rewarded for it in return for job security and competitive rates.
Comparing Bonuses Based on Seniority in Nepal
Nepal senior workers receive bonuses. The government of Nepal has passed a new law for issuing bonuses to employees and employers. It is found that the amount of bonus will depend on the seniority of the employee.
Employees with more than seven years of the service period will be entitled to higher amounts as compared to those having less than five years tenure in their job position, which is applicable irrespective of whether they are permanent or temporary employees.
Employers will have to issue a bonus equivalent to at least one month’s salary to those employees who have worked for more than six months of the previous financial year.
As per the provisions, those having worked for between three and six months can be given half of that amount.
Salary Information For Popular Jobs
- Architect – 99,500 NPR
- CAD Drafter – 42,400 NPR
- Civil Engineer – 85,700 NPR
- Construction Manager – 52,500 NPR
- Interior Designer – 37,000 NPR
- Jewelry Designer – 20,700 NPR
- Land Surveyor – 61,000 NPR
- Mechanical Engineer – 97,300 NPR
- Accounting Clerk – 42,400 NPR
- Business Development Manager – 99,500 NPR
- Customer Service Representative – 37,000 NPR
- Marketing Coordinator – 77,000 NPR
- Office Assistant – 35,100 NPR
- Office Manager – 50,000 NPR
- Receptionist – 33,100 NPR
- Sales and Marketing Manager – 99,500 NPR
Computer and Networking Administration
- Computer Hardware Engineer – 85,700 NPR
- Network Administrator- 85,700 NPR
- Software Developer- 147,900 NPR
Travel and Tourism Administration
- Culinary Arts- 35,100 NPR
- Hospitality Management- 50,000 NPR
- Hotel Receptionist- 33,100 NPR
- Tour Guide- 30,000 NPR
- Web & Graphic Designing
- Graphic Designer – 60,300 NPR
- Multimedia Developer- 42,400 NPR
- Web Developer – 42,400 NPR
- Account Clerk – 42,400 NPR
- Accounts Assistant/Receivable – 52,500 NPR
- Accounts Payable Assistant – 59,700 NPR
- HR Executive Assistant – 70,300 NPR
- Legal Secretary/Paralegal Assistant- 70,300 NPR
- Office Administrator- 44,000 NPR
Nepal’s Average Hourly Wage
In Nepal, the average hourly rate (pay per hour) is 470 NPR. This indicates that the typical citizen in Nepal earns around 470 Nepali rupees for each hour worked.
In other words, working part-time in Nepal offers an income that is around 40% of the national average.
- Rural – 543 NPR ($5.90) per day
- Urban – 733 NPR ($8) per day
Salary Comparisons Between the Public and Private Sectors
In general, public sector workers in Nepal earn 10% more than their private-sector colleagues.
Public sectors in Nepal consist of either the central government or the local (provincial) governments. The salaries for both levels of public sector workers are determined by a policy set in place by the Ministry of Finance (MoF).
Private sector employees in Nepal include those working for private companies and NGOs.
Salaries within this sector are usually based on market demand rather than policy set by the MoF. Industry-specific salary scales or pay packages are common even among large private companies.
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