Government Revises Minimum Wage in Nepal

Government Revises Minimum Wage in Nepal

Category: Employer Blog

Views: 238 | July 18, 2025

Government Revises Minimum Wage in Nepal to NPR 19,550 Effective July 15, 2025

The Ministry of Labour, Employment, and Social Security has announced a significant revision in the minimum wage for workers and employees across Nepal. The new wage structure, effective from Shrawan 1, 2082 (July 15, 2025), was finalized following a tripartite agreement among the government, employers, and trade unions.


New Wage Structure

As per the ministry’s decision, the minimum monthly salary for employees has been fixed at NPR 19,550, which includes:

 Category  Basic Salary  (NPR)   Dearness Allowance  (NPR)  Total  (NPR)
 Monthly   Salary  12,170  7,380  19,550
 Daily Wage  470  284  754
 Hourly (Full-
 time)
 –  –  101
 Hourly (Part-
 time)
 –  –  107

This marks an increase of NPR 2,250 compared to the previous minimum monthly wage of NPR 17,300.


Background

The revision complies with Section 107 of the Labour Act, 2074 BS, which mandates reviewing minimum wages every two years. The decision was based on the recommendation of the Minimum Wage Fixation Committee, considering inflation and living cost adjustments.


Previous vs Current Wage Comparison

Year Basic Salary (NPR) Total Salary (NPR)
2018 10,000 13,450
2019 10,820 17,300
2025 12,170     19,550

 

Negotiation Highlights

  • Employers proposed NPR 19,500, while trade unions demanded NPR 21,000.
  • Final settlement reached at NPR 19,550 after several rounds of discussion.
  • Tea plantation sector wages will be discussed separately.

What Employers Need to Do

Businesses must update payroll systems and employment contracts immediately to comply with the new regulations. Failure to adhere may lead to penalties as per the Labour Act.


Effective Date

July 15, 2025 (Shrawan 1, 2082 BS) — All organizations must implement the revised wages from this date.


Froxjob’s Note

At Froxjob, we help businesses navigate regulatory changes efficiently. If you need assistance in payroll compliance, HR policy updates, or workforce management, our team is ready to support you.

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