At a Glance
Key Takeaways for Employers
01
Contingency recruitment for professional roles is commonly benchmarked at
15%–25% of first-year salary, rising with seniority and skill scarcity.
02
Executive search, contract staffing, digital job portals, and overseas manpower recruitment
each follow distinct fee structures tied to seniority, scope, and compliance load.
03
Compare total cost — placement fees, replacement guarantees, SSF obligations, and SLAs —
not just headline agency percentages.
Bottom line: Recruitment agencies in Nepal typically charge employers
around 15%–25% of a hired candidate's annual salary for professional placements in 2026. Alternative
models — retained search, contract staffing, fixed-fee portals, and regulated overseas recruitment —
vary considerably by role, complexity, and service scope.
Section 01
Contingency Placement Pricing
Agencies earn their fee only on successful hire — pricing scales with seniority, specialization,
and sourcing difficulty.
Fee range as % of first-year salary
| Candidate Annual Salary (NPR) | 15% Fee | 20% Fee | 25% Fee |
|---|---|---|---|
| 600,000 | 90,000 | 120,000 | 150,000 |
| 900,000 | 135,000 | 180,000 | 225,000 |
| 1,200,000 | 180,000 | 240,000 | 300,000 |
| 1,800,000 | 270,000 | 360,000 | 450,000 |
| 2,400,000 | 360,000 | 480,000 | 600,000 |
Payment is typically invoiced on or around the candidate's start date, with settlement windows
(often up to 60 days) negotiated between agency and employer. Under pure contingency arrangements,
a failed search usually incurs no placement fee.
Section 02
Retained Executive Search
Used for C-suite and leadership mandates. Nepal-based assignments commonly range
20%–30%; global search firms may price
25%–35% of first-year compensation.
The “Rule of Thirds” Retainer Structure
STAGE 1
~33%
Engagement Retainer
— strategy, profiling, market mapping
— strategy, profiling, market mapping
STAGE 2
~33%
Shortlist Milestone
— candidate ID, assessment, shortlist
— candidate ID, assessment, shortlist
STAGE 3
~34%
Completion Milestone
— final selection & negotiation
— final selection & negotiation
Worked Example — NPR 12,000,000 Executive Hire
Section 03
Contract Staffing, Payroll Outsourcing & Social Security
Outsourced staffing bills the full employment cost — wages, statutory contributions, and
administration — not just a recruiter's margin.
Social Security Fund — 31% of Basic Remuneration
| Cost Component | Monthly (NPR) |
|---|---|
| Basic Salary | 40,000 |
| Employee SSF (11%, withheld) | 4,400 |
| Employer SSF (20%, additional) | 8,000 |
| Salary + Employer SSF Cost | 48,000 |
| Staffing Product | Published Pricing |
|---|---|
| Temporary Staffing (starting) | NPR 550/hr + 13% VAT |
| Basic HR Outsourcing | NPR 500–1,000 / employee / mo |
| Standard HR Package | NPR 1,000–2,000 / employee / mo |
| Employer of Record (EOR) | ~8%–15% of gross salary |
Compliance context: Labor Act 2017 sets a maximum 6-month probation,
48-hour work week, 12 days paid sick leave, and 14 weeks maternity leave. SSF deposits are due within
25 days of month-end. These obligations sit on top of wages when an agency prices outsourced staffing.
Section 04
Digital Job Portals vs. Recruitment Agencies
Portals monetize visibility and hiring technology — a fixed-cost alternative to
percentage-based agency fees, best suited to employers with internal screening capacity.
STANDARD POSTING
NPR 6,000
30 days · 2nd priority visibility · 6-month applicant access · Talent Roster included
TOP JOB POSTING
NPR 12,000
30 days · Top & 1st priority visibility · 12-month applicant access · AI-powered ATS
AGENCY PLACEMENT
15–25%
of annual salary · full sourcing, screening & headhunting · success-based
Example: hiring a professional earning NPR 1.2M annually could cost NPR 6,000–12,000 via a job portal
versus a six-figure agency placement fee — but the employer absorbs the sourcing and screening workload.
Section 05
Overseas Recruitment: Foreign Employment Agencies
Governed by the Foreign Employment Act 2007. Worker-side recruitment charges are capped or
zero-cost across most major migration corridors.
| Destination / Corridor | Fee Framework | Model |
|---|---|---|
| Malaysia | Zero-cost to worker | Employer Pays |
| Qatar | Zero-cost recruitment framework | Employer Pays |
| Saudi Arabia / UAE / Bahrain / Kuwait / Oman | Max NPR 10,000 | Regulated Worker Fee |
| Europe | Ceiling of NPR 80,000 (industry guidance) | Regulated Fee |
| South Korea (EPS) | NPR 100,000 | Government-to-Government |
| Israel | NPR 165,000 | Government-to-Government |
2026 NATIONAL SURVEY (NSO / ILO)
~1/3
workers paid no
recruitment fee
recruitment fee
3.3 mo
average earnings
to recover cost
to recover cost
4.5 mo
recovery period
for women workers
for women workers
MALAYSIA CORRIDOR MODEL
Zero-cost worker recruitment. Malaysian employer pays the Nepalese agency a service charge
equivalent to half a month's basic salary after the worker's arrival.
Risk flag: Unregistered brokers are linked to the highest recruitment
costs. Employers should insist on licensed channels, documented receipts, and pre-departure insurance
& Welfare Fund compliance under the Foreign Employment Act.
Section 06
Service-Level Benchmarks & Replacement Guarantees
Common agency-published commercial targets for overseas manpower recruitment — always
verify against the individual service agreement.
A worker found medically or technically unqualified within the guarantee period is commonly replaced
without an additional recruitment fee — though visa, medical, and travel costs should be
explicitly allocated in the contract.
Section 07
Kathmandu Technical Salary Benchmarks
Since placement fees are percentage-based, higher technical compensation directly drives higher
recruitment costs.
Ranges reflect competitive Kathmandu technology employers and vary across datasets; use as directional
market benchmarks rather than fixed nationwide salary scales.