Leave Entitlements in Nepal — Labour Act Guide

Weekly Holiday

Every worker is entitled to:

One weekly holiday

each week.

Public Holidays

Workers are generally entitled to: 13 paid public holidays per year, including May Day

A female worker is entitled to: 14 paid public holidays, including International Women's Day.

Where a regulator determines the holiday calendar for a particular establishment, the regulator's schedule applies.

Compensatory Leave

A worker engaged in continuous/non-stoppable work who works on a weekly or public holiday is entitled to compensatory leave.

The leave should generally be provided within: 21 days from the holiday worked.

Home Leave

A worker earns paid home leave at: 1 day for every 20 days worked.

This is approximately 18 days for a full 360-day period, although the actual entitlement should be calculated from statutory qualifying days rather than assumed as a flat annual number.

Workers in educational institutions who already receive specified summer/winter vacations are subject to the separate rule contained in Section 43.

Sick Leave

A worker receives: 12 days of paid sick leave per year.

A worker employed for one year or less receives sick leave proportionately.

Where sick leave exceeds three consecutive days, the worker must provide a certificate from a recognised medical practitioner.

Maternity Leave

A pregnant worker is entitled to: 14 weeks of maternity leave before and/or after delivery.

At least:

• 2 weeks before the expected delivery date, and

• 6 weeks after delivery

must be taken as maternity leave.

Paid Portion

The worker is entitled to full remuneration for: 60 days of maternity leave.

The remaining period under the Labour Act is generally unpaid, subject to Social Security Fund benefits and any more favourable employment/collective arrangement.

Where SSF provides maternity-leave benefits, the employer's payment obligation is reduced to the extent covered by the Fund under Section 47.

Additional Maternity-related Leave

Where a recognised medical practitioner certifies that additional rest is required for the mother or infant, the employer must permit up to: 1 additional month

of unpaid leave or adjustment against another available leave entitlement, as provided by the Act.

Maternity-care / Paternity Leave

A male worker whose wife gives birth is entitled to: 15 days of paid maternity-care leave.

Stillbirth / Miscarriage

Where a pregnancy of seven months or more results in:

• stillbirth; or

• miscarriage,

the woman is entitled to maternity leave as if delivery had occurred, according to Section 45.

Bereavement / Kiriya Leave

A worker is entitled to: 13 days of paid Kiriya leave where the statutory family/religious circumstances apply, including specified deaths requiring the worker to personally observe mourning rites.

Accumulation of Leave

The Labour Act permits accumulation of:

Home leave

Up to: 90 days

Sick leave

Up to: 45 days.

Excess Accumulated Leave

Where accrued home/sick leave exceeds the maximum accumulation limit, the worker is entitled at year-end to payment for the excess based on the worker's basic remuneration.

Leave Encashment on Termination

When employment ends—or where the worker dies—the worker or applicable family member is entitled to payment for accumulated:

• home leave; and

• sick leave

based on the worker's latest basic remuneration.

This amount should be included in the final-settlement calculation.

Leave Is Not Always an Absolute Right to Take Any Date

Section 51 distinguishes:

• sick leave;

• maternity leave; and

• Kiriya leave

from other leave categories.

Other leave can, for legitimate workplace needs, be:

• refused;

• postponed;

• shortened; or

• rescheduled,

with reasons, subject to the Act.

This does not allow the employer to eliminate accrued statutory entitlement.

Leave Register

CMA recommends maintaining:

• opening leave balance;

• annual entitlement;

• leave accrued;

• leave taken;

• compensatory leave;

• balance carried forward;

• excess leave encashed;

• termination encashment.

Payroll / HR Checklist

• Weekly holiday provided

• Public-holiday calendar issued

• Home leave accrued correctly

• Sick leave accrued proportionately

• Medical certificate obtained where required

• Maternity leave tracked

• SSF maternity benefit coordinated

• Paternity/maternity-care leave recorded

• Kiriya leave documented

• Home leave capped at 90 days

• Sick leave capped at 45 days

• Excess accumulation paid annually

• Closing leave provision reconciled

• Termination encashment included in final settlement

Common Errors

Treating home leave as a flat number without calculating accrual

Forfeiting excess leave instead of paying the amount required by law

Failing to encash accumulated leave on termination

Treating the entire maternity-leave period as necessarily employer-paid without considering SSF coordination

Refusing statutory sick/maternity/Kiriya leave merely because work is busy

Further guidance and practical checks

Leave records have payroll, labour-audit and termination-settlement consequences. Employers should maintain a worker-level leave register rather than reconstructing balances when employment ends.