The average base salary in Nepal, located in South Asia, is NPR 80,700 (Nepal Rupee)/month, approx. USD 616 Based on April 2023 exchange rates.
However, this statistic alone is not enough if you are looking to outsource your business to Nepal. A detailed study should be conducted on salary rates, cost of living, and various factors that affect your business.
This article discusses average salaries in Nepal, as well as various salary statistics and cost of living. In addition, he also discusses three advantages of outsourcing to Nepal.
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Let’s get started!
Average salaries in Nepal: statistics and trends
of Average Annual Income in Nepal teeth 968,400 NPR per year (approximately 7,391 USD), Based on April 2023 exchange rates.
However, it is impossible to have a complete picture of Nepal’s economy without the following factors:
- Qualification.
- Job type.
- industry.
- Cost of living.
- more.
Therefore, you should consider these factors before outsourcing your business or paying your Nepalese employees.
But before moving on to them, let’s examine the different aspects of Nepalese salaries.
A. Average Salary Range
The average minimum salary for an employee in Nepal is 20,400 NPR (USD 156) and highest average salary 360,000 NPR (USD 2,748) per month.
Note: Average salary range figures represent the average of minimum and maximum salaries. Actual maximum and minimum salaries may differ.
B. Median salary
Median salary refers to the median salary when sorted in ascending or descending order. It can also be used by industries and organizations to determine median salaries.
Median salaries can help you see how much people are making, determine appropriate salaries depending on your industry, and negotiate salaries during interviews.
According to Salary Explorer, the average salary in Nepal is 73,100 NPR again USD 558 monthly.
This means that half of the employees earn more than that. 73,100 NPR while others earn less, 73,100 NPR.
C. Minimum wage
A country’s minimum wage refers to the lowest remuneration that a recruiter must pay for an employee’s services.
the current, minimum wage in nepal teeth NPR 15,000 per month, equivalent to approximately US$114Hourly wages for Nepalese employees are approximately 470 Nepalese Rupees (3.59 USD)This is lower than most developed countries such as the United States (7.25 USD), England (US$12.89)Such
D. Annual Increment
Here is a list of different industries in Nepal and their growth rate:
| industry | Annual Increment (%) |
| trip | 8% |
| banking | 7% |
| construction | 6% |
| energy | Five% |
| education | Four% |
| information technology | 3% |
| health care | 1% |
sauce: salaryexplorer.com
Note: The salary estimates provided in this article should be used as a guideline only. An individual’s salary may vary based on various factors such as education, cost of living, location and industry.
But what are the factors that determine salaries in Nepal?Let’s check them out.?
4 Factors Affecting Salaries in Nepal
Let’s take a look at five factors that influence and contribute to salaries in Nepal.
A. Education
Highly educated employees enjoy well-paid jobs. The difference in salaries according to the educational background of Nepalese employees is as follows.
- Diploma holders usually 17% than their high school-educated peers.
- Graduates can obtain twenty four% than those who have a diploma.
- graduate students can earn 29% More than someone with a bachelor’s degree.
- You can enjoy a raise equivalent to that of an employee with a Ph.D. twenty three% More than employees with graduate degrees.
B. Industry
Health workers receive the highest salaries in Nepal and dentistry is the highest paying job. Let’s take a look at the industry breakdown of average salaries in Nepal.
| job title | average monthly salary |
| chief executive officer | 182,000 NPR |
| bank manager | 144,000 NPR |
| general manager | 143,000 NPR |
| Information Technology Manager | 133,000 NPR |
| accounting manager | 120,000 NPR |
| HR manager | 114,000 NPR |
| project manager | 87,800 NPR |
| Bachelor of Mechanical Engineering | 77,600 NPR |
| civil engineer | 73,600 NPR |
| CPA | 70,100 NPR |
| graphic designer | 50,600 NPR |
sauce: salaryexplorer.com
C. Experience
As in other countries, experienced employees are in demand in Nepal. Here’s how the salary rate rises from entry level depending on years of experience.
| degree of experience | Salary increase (%) |
| Beginner – Intermediate level | 3% – 5% |
| Mid-level | 6% – 9% |
| senior management | 10% – 15% |
| top management | 15% – 20% |
sauce: SalaryExplorer.com
D. Location
Salaries also vary by city. For example, the average monthly salary in Kathmandu is around 86,900 NPR. On the other hand, the average monthly salary of an employee in Pokhara, another city in Nepal, is about 80,700 NPR.
Disclaimer: The average wage and salary figures in this article are taken from various independent salary surveys. These numbers are intended as general guidelines only and are not exact values.
Nepal bonuses and incentives
Employees in Nepal usually receive bonuses ranging from 3% to 6% of their annual salary.
According to Salary Explorer’s 2023 survey, 37% of Nepalese employees reported receiving some kind of financial bonus in the previous year.
The cost of living also affects the salaries of local employees. Find out if your employee’s salary can cover your expenses.
cost of living in nepal
The cost of living refers to the amount Nepalis have to pay for basic amenities such as accommodation, transportation, food and water.
cost of living in nepal It is likely lower than in countries such as the United Arab Emirates and Germany. However, it is still higher than neighboring countries such as Pakistan.
Monthly living expenses for a family of four 151,337 NPR (USD 1,155), for individuals there is an approximate probability of 43,531 NPR (USD 332) per month.
As in most countries, renting a house in the city center of Nepal will cost more than in the suburbs.
For example, renting a single bedroom costs about 14,961 NPR (114 USD) in the city center for a monthly fee or approx. 11,038 NPR (US Dollar) 84) per month on the outskirts of the city.
Eating out at inexpensive restaurants can cost you 250 NPR (U.S. 1.91)On the other hand, a meal for two in a mid-range restaurant costs approximately 2,000 NPR (US Dollar) 15) monthly.
If you are still hesitant to invest in Nepal, see how outsourcing can help your business.
4 benefits of outsourcing to Nepal
Nepal offers a range of perks to attract foreign companies to the country. Here are some of them:
1. Affordable Labor
Two reasons contributing to affordable labor force in Nepal are: Cost of living and low average wages.
Nepal is one of the top 20 countries with the lowest average monthly income, ranking lower than countries such as India, Russia and Bangladesh. Low average incomes mean that average top wages are much lower than in most developed countries.
according to IMF According to the International Monetary Fund, Nepal is one of the few countries in South and Central Asia with the lowest annual cost of living. 4,460 international dollar per person.
As a result, production capacity can be increased at a much lower cost than other developing and developed countries such as the United States and China.
2.Skilled workforce
Along with cheap labor, one of the main reasons organizations outsource their businesses is the availability of a skilled and educated workforce at affordable rates.
Nepal boasts a young, skilled, English-speaking population. Highly skilled people are also tech savvy, and many have taken careers in software engineering, web development, and other technology fields.
To further encourage the people of Nepal, the government is promoting education with a focus on Information and Communication Technology (ICT). This will develop the skills needed for the workplace.
Over 5,000 graduates enter the booming IT and BPO sectors each year, and many foreign companies invest in the country.
3. Convenient transportation
Nepal offers a well-connected transport system consisting of public buses, minivans, microbuses, metered taxis and domestic flights.
Expenses for one-way local transport trips 20 NPR (USD 0.16)whereas the moon path is 900 Nepalese rupees (7.38 USD)Employees can also take paid taxis 120.70 NPR (0.99 USD) 1 mile.
If you are looking to set up a business in Kathmandu, your employees can take the Saja Yattayat public bus that operates throughout the Kathmandu Valley.
4. Government support
The Nepalese government believes in sustainable economic growth in the private and public sectors and aims to replace trade deficits and imports with export-worthy industries.
As a result, promotion of the IT and BPO sector needs special attention due to its export potential. Nepal Trade Integration Strategy, 2010 It lists IT as one of 19 key sectors for foreign investment.
To attract foreign companies to the country, the government also provides duty free like that:
- 50% tax exemption for certain industries such as software development, digital mapping, information processing and telecommunications.
- 15% tax exemption for ICT companies listed on stock exchanges.
- 10% partial income tax refund for ICT businesses employing at least 300 Nepalese citizens.
Economic reforms, a skilled population, and government support allow foreign companies to move smoothly into the country.
summary
Nepal is making slow and steady progress as an attractive outsourcing destination in Asia. Labor wages are rising, especially in neighboring countries such as India and China.
An incredibly skilled and affordable workforce and an economically conducive business environment make Nepal a promising outsourcing destination to help you expand your business at low cost.
If you’re confused, use our comprehensive guide on average salaries in Nepal to help you decide if Nepal is the right choice for your business and plan your move wisely.
