Overtimeअतिरिक्त समय
Overtime is time worked beyond the standard eight-hour day or forty-eight-hour week. Under Nepal's Labour Act 2074 it is paid at one and a half times basic remuneration and is capped at four hours a day and twenty-four hours a week.
Also called: OT, overtime pay Nepal, atirikta samaya
Key facts
- Rate
- 1.5 times basicBasic remuneration, not gross.
- Daily cap
- 4 hoursBeyond the standard eight.
- Weekly cap
- 24 hoursBeyond the standard forty-eight.
- Approval
- Should precede the workNot be granted afterwards.
The rate is on basic
One and a half times basic remuneration, not one and a half times gross. Companies that calculate on gross overpay, sometimes substantially, and companies that calculate on a nominal hourly rate invented for the purpose underpay. Both are avoidable by deriving the hourly figure from basic.
The caps are limits, not targets
Four hours a day and twenty-four hours a week are ceilings the Act sets. A team consistently at the ceiling is not a payroll question, it is a staffing question, and the overtime report is usually the first place that shows up.
Approve before, not after
Overtime approved after the fact is not a control. It is a reconciliation. Requiring approval before the extra hours are worked keeps the cost visible while it can still be changed, and it removes the awkward conversation where somebody has already done the work.
A system that turns every late punch into an automatic overtime request will bury the real ones. Set the rule so that overtime is raised deliberately.
Overtime on a NPR 30,000 basic salary
Assuming a standard 48-hour week and an hourly rate derived from basic.
- Monthly basic
- NPR 30,000
- Derived hourly rate
- Basic divided by the month's standard hours
- Overtime rate
- 1.5 times that hourly figure
The derivation of the hourly rate should be written into the policy, because the standard hours in a Nepali month vary with the calendar.
Overtime, answered
One and a half times basic remuneration under the Labour Act 2074. It is calculated on basic, not on gross salary.
Up to four hours in a day and twenty-four hours in a week, beyond the standard eight-hour day and forty-eight-hour week.
On basic remuneration. Calculating it on gross overpays, and using an invented hourly rate usually underpays.
- Labour Act 2074, overtime rate and limits.
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.
Related terms
- Working Hoursकामको समयNepal's Labour Act 2074 sets working hours at eight a day and forty-eight a week, with at least one day of rest each week. Time worked beyond that is overtime and carries the higher rate.
- Basic Salaryआधारभूत तलबBasic salary is the fixed core of an employee's pay, before allowances, overtime and bonuses. In Nepal it is also the base every statutory contribution is assessed on, which makes it the most consequential number in a salary structure.
- Shift Rosterपालो तालिकाA shift roster is the published schedule of who works which shift on which day. It is what attendance is measured against: without a roster, a punch at 14:00 cannot be classified as on time or late.
- Labour Act 2074श्रम ऐन २०७४The Labour Act 2074 is Nepal's principal employment statute, in force since 2074 BS (2017 AD) and applied together with the Labour Rules 2075. It sets employment types, working hours, overtime, leave entitlements, probation and notice, and the funded gratuity and social security model.
- Attendance RegularisationAttendance regularisation is the process for correcting an attendance record: a missed punch, a forgotten check-out, a day spent at a client site. The employee raises it, a manager approves it, and the corrected record carries an audit trail.
- Biometric Attendanceबायोमेट्रिक हाजिरीBiometric attendance records a punch using a physical identifier such as a fingerprint or a face, on a device at the workplace. Because the identifier cannot be handed to a colleague, it removes buddy punching, which is the main weakness of card and register systems.
- Minimum Wageन्यूनतम पारिश्रमिकThe minimum wage is the lowest remuneration an employer in Nepal may lawfully pay, fixed by the Government of Nepal on the recommendation of the Minimum Remuneration Fixation Committee. It is published as a basic component plus a dearness allowance and is revised on a recurring cycle.
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