Nepal Government Raises Minimum Salary to Improve Worker Livelihoods

In a significant move towards ensuring fair compensation for employees, the Nepal Government has taken proactive steps to amend its minimum wage regulations. This transformative decision, made with the aim of enhancing the livelihoods of Nepalese workers, has set a new benchmark for labor rights and economic justice in the country.

The Importance of Minimum Salary/Wage in Nepal

Minimum wage policies vary from one country to another, often tailored to account for the cost of living within a specific nation. In the case of Nepal, the government has recently revised the minimum monthly salary from Rs. 15,000 to a more equitable Rs. 17,300, recognizing the pressing need to address the economic well-being of its workforce.

The Legal Framework

This change is a result of the Government of Nepal's commitment to upholding the rights of workers. It was formally implemented through a notice published in the Nepal Gazette Part 5, Volume 73, Number 24, dated August 17, 2023 (2080-04-32). The Ministry of Labour, Employment, and Social Security Act, 2074, in accordance with Section 106 of the Act, 2074, has outlined the minimum wages for both non-tea plantation workers and tea plantation workers.

For non-tea plantation workers, the minimum wage structure is as follows:

Minimum Wages (RS)	Basic Wages (RS)	Allowances (RS)	Total (RS)
Monthly	10,820	6,480	17,300
Daily	418	250	668
Per Hour	56	33	89
Per hour minimum remuneration of the part-time workers	-	-	95

For tea plantation workers, the minimum wage structure is as follows:

Minimum Wages (RS)	Basic Wages (RS)	Allowances (RS)	Total (RS)
Monthly	8,934	4,959	13,893
Daily	323	177	500
Per Hour	43	23	66
Daily Allowances for the workers at tea refineries and tea factories per hour	-	-	63 per

In addition to these stipulated wages, employers are obligated to provide labor contracts or appointment letters, provident funds, and gratuity to their employees, in accordance with the Labor Act, 2074, and other prevailing labor laws.

Local Government Involvement

According to the Local Government Operation Act, 2074, it is required that local-level authorities or other bodies, if given the power to decide the minimum wage, must make sure that the set wage is not lower than the rate mentioned in this notification. This law is in place to protect workers from receiving wages that are below the minimum standard.

Additional Information on Minimum Salary/Wage Law in Nepal

Mandatory Compliance: Employers across Nepal are obligated to ensure that all workers are paid at least the minimum wage of NPR 17,300 per month, in addition to Social Security Contributions.

Worker Benefits: Employers are also required to provide workers with labor contracts or appointment letters, as well as offer benefits such as provident funds and gratuities.

Exemptions: Notably, the minimum wage does not apply to workers engaged in tea plantations.

Adjustment Mechanism: The minimum wage may be subject to periodic adjustments, influenced by factors such as the cost of living and economic conditions.

Legal Consequences: Employers failing to adhere to the minimum wage regulations may face fines or even imprisonment.

In summary, Nepal's commitment to enhancing workers' well-being through fair compensation is a commendable step towards achieving a more equitable and prosperous society.

This landmark decision is set to resonate positively not only within the labor force but also throughout the nation as a whole.