NepalHRM
Leave

Home Leaveघर बिदा

Definition

Home leave is Nepal's annual paid leave entitlement. Under the Labour Act 2074 an employee earns one day of home leave for every twenty days worked, and unused days accumulate up to a ceiling of ninety.

Also called: annual leave Nepal, ghar bida, earned leave Nepal, paid leave Nepal

Key facts

Accrual
1 day per 20 workedRoughly 18 days a year on a full attendance record.
Paid
YesAt full remuneration.
Accumulation
Up to 90 daysBeyond that the balance is encashed.
Resets
On the fiscal yearShrawan to Ashad.

Why it accrues rather than being granted

Home leave is earned against days actually worked, not handed out as a block at the start of the year. One day accrues for every twenty worked, so an employee with a full attendance record reaches roughly eighteen days over a year, and a joiner three months in has earned about four and a half.

This is the provision companies most often configure wrongly. A policy that grants a flat eighteen days on day one is more generous than the Act, which is permitted, but it also means a leaver in month three has taken leave they had not yet earned, and that has to be recovered in the final settlement.

Accumulation and the ninety-day ceiling

Unused home leave carries forward. It keeps accumulating up to ninety days, and beyond that ceiling the excess is encashed rather than lost. An employee sitting at the ceiling who takes no leave is effectively converting future accrual into cash.

For finance this is a liability that grows quietly. A company with a hundred employees averaging thirty days of accumulated home leave is carrying roughly three thousand days of paid absence on its books.

What HR should watch

  • Balances approaching ninety days, because they turn into an encashment obligation.
  • Employees with near-zero usage, which is usually a workload signal rather than a leave preference.
  • Whether the accrual in the system is the Act's one-in-twenty or a flat annual grant, and whether the offer letters say the same thing.
Common questions

Home Leave, answered

Home leave accrues at one day for every twenty days worked, which comes to roughly eighteen days over a full year of work. A company policy may be more generous, but not less.

Yes, up to ninety days. Once the balance reaches that ceiling the excess is encashed rather than continuing to accumulate.

Yes, at full remuneration. It is distinct from unpaid leave, which is granted at the employer's discretion.

Last reviewed 2026-07-29
  • Labour Act 2074, provisions on home leave, accumulation and encashment.

This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.

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