Leave Rules in Nepal Under the Labour Act 2074: A Simple Table for Employers
Every type of leave under Nepal's Labour Act 2074: home leave, sick leave, maternity, paternity, mourning, public holidays and festival allowance, with carry-forward limits and encashment.
This guide covers private-sector employment in Nepal under the Labour Act 2074 (2017) and Labour Rules 2075. Government jobs and some sectors follow different rules.
Leave disputes are one of the most common HR headaches in Nepali companies, usually because nobody wrote down how leave is earned and counted. Here are the legal minimums in one place.
Leave at a glance
| Leave | Minimum entitlement | Paid? | Carry forward |
|---|---|---|---|
| Public holidays | 13 days a year (women get an extra day for International Women's Day) | Paid | — |
| Home leave | 1 day for every 20 days worked (about 18 days a year) | Paid | Up to 90 days |
| Sick leave | 12 days a year, prorated in the first year | Paid | Up to 45 days |
| Maternity leave | 98 days (14 weeks) | 60 days fully paid | — |
| Paternity leave | 15 days | Paid | — |
| Mourning leave | 13 days | Paid | — |
| Other (special) leave | Unpaid leave at the employer's discretion | Unpaid | — |
These are minimums. Your company policy or contract can be more generous, never less.
Home leave (घर बिदा)
- Earned at 1 day per 20 days worked, so it builds up as people work.
- Up to 90 days can be carried forward.
- The employer can schedule it. Home leave is generally treated as a facility the employer may approve or schedule around work needs; sick, mourning and maternity leave can't be refused.
- Unused home leave up to the carry-forward limit is generally paid out (encashed) when employment ends.
Sick leave (बिरामी बिदा)
- 12 days of paid sick leave a year, prorated for the first year.
- Medical proof can be asked for longer absences. Many policies ask for a certificate after 3 consecutive days.
- Up to 45 days can accumulate, with unused balance generally encashed on leaving.
Maternity and paternity
- Maternity: 98 days in total, which can start before delivery. The first 60 days are fully paid.
- Paternity: 15 days of paid leave when the employee's wife gives birth.
Mourning leave (किरिया बिदा)
13 days of paid leave on the death of a close family member, as defined in the Act.
Festival allowance (चाडपर्व खर्च)
This isn't leave, but it's paid alongside the festivals. Every worker gets a festival allowance of one month's basic salary once a year, for the main festival of their religion or culture. For most companies that's Dashain. It's prorated for people with less than a year of service. It's taxable; see how Dashain allowance is taxed.
Write a leave policy that prevents disputes
- Say how leave is earned: per month, or per 20 days worked for home leave.
- Say who approves leave, and how far in advance it must be requested.
- Say what happens to unused leave each year and when someone leaves.
- Say whether Saturdays and public holidays within a leave period count as leave.
- Show everyone their live balance. Most leave fights are about "how many days do I have left?"
Stop running leave on WhatsApp
Leave requested over WhatsApp, approved verbally and tracked in Excel ends in disputes about balances. TeamKro employees request leave from their phone. Managers approve in one tap, balances update automatically by your policy, and approved leave flows straight into attendance and payroll. Book a demo.
FAQ
Can an employer refuse home leave?
Home leave can be scheduled around business needs. Sick, maternity and mourning leave are protected.
Do Saturdays during a leave period count?
It depends on your policy. Write it down, and apply it the same way for everyone.
What happens to unused leave when someone resigns?
Accumulated home leave (up to 90 days) and sick leave (up to 45 days) are generally paid out on leaving.
Last checked 31 October 2026 against the Labour Act 2074 and Labour Rules 2075 as summarised by Nepali law firms. Read the Act or ask a labour lawyer for disputes. General information, not legal advice.
Sources: Pradhan Law: Implementation of Labour Act 2074 · Merojob: Leaves and public holidays in Nepal · B360: Underscoring the new Labour Act 2074 · Labour Act 2074 (FAOLEX)