Ensuring fair compensation for employees is an important aspect of maintaining a fair and equitable work environment. Nepal Government recently took a significant step by amending its minimum wage regulations, aimed at improving the livelihoods of its workers.
The minimum salary is not the same in every country. It is typically set based on the cost of living in that country. In Nepal, the current minimum monthly salary was Rs. 15,000 now it has increased to Rs. 17,300.
The Government of Nepal has recently revised the minimum wage under Labor Act, 2017 (2074) (“Labor Act”) by publishing a notice in Nepal Gazette Part 5, Volume 73, Number 24, dated August 17, 2023 (2080-04-32).
The Government of Nepal Ministry of Labour, Employment and Social Security Act, 2074 in accordance with Section 106 of the Act, 2074 has determined the minimum wages for non-tea plantation workers and tea plantation workers as follows:
In the case of workers other than tea plantations:
| 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 |
In the case of tea plantation workers:
| 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 hour |
In addition to the specified wages, employers are required to provide labor contract/appointment letter, provident fund and gratuity to the workers in accordance with the Labor Act, 2074 and other prevailing laws.
According to Section 13 of the Local Government Operation Act, 2074, if the local level or other body is given the right to determine the minimum wage according to the law of Nepal, such level or body should determine the wage in such a way that it is not less than what is specified in this notification.
No one shall be allowed to enter into any employment contract in such a way that he will be paid less than the mentioned minimum wage. The above minimum wage has been implemented based on the legal provisions of Section 28 of the Labor Act, 2074. Even in cases where some provisions are different in terms of minimum wage, adjustments can be made based on this minimum wage.
Nepal's recent amendment to its minimum wage regulations reflects the government's commitment to improving the living conditions and rights of workers. It is essential for both employers and employees to be aware of these changes to foster a more just and equitable working environment in the country.
