Minimum Wage in Nepal 2025
The Government of Nepal has revised the minimum wage for workers and employees, effective from July 15, 2025 (Shrawan 1, 2082 BS). This decision was announced by the Ministry of Labour, Employment, and Social Security, following a tripartite agreement among the government, employers, and trade unions.
The revision reflects Nepal’s commitment to improving labor standards and ensuring fair compensation for workers in response to inflation and the rising cost of living.
✅ Key Highlights of the New Wage Structure
| Category | Basic Salary (NPR) | Dearness Allowance (NPR) | Total Monthly Wage (NPR) | Daily Wage (NPR) | Hourly Wage (NPR) | Part-time Hourly Wage (NPR) | Remarks |
|---|---|---|---|---|---|---|---|
| General Workers (excluding tea estate) | 12,170 | 7,380 | 19,550 | 754 | 101 | 107 | Revised as per Ministry of Labour |
Social Security Fund (SSF) Contribution
Along with the revised minimum wage, the 31% SSF contribution will continue to apply on the basic salary. This includes 20% from the employer and 11% from the employee. Employers must ensure timely SSF deposits to remain compliant.
When Does This Change Take Effect?
The new wage structure will be implemented from July 15, 2025 (Shrawan 1, 2082 BS). All employers must update payroll systems and salary structures before this date to avoid non-compliance penalties.
Why Was the Wage Revised?
The Labour Act, 2074 (Section 107) requires the government to revise minimum wages every two years. The adjustment is based on inflation, living costs, and recommendations from the Minimum Wage Fixation Committee.
Legal Basis for Minimum Wage
The revised wage is in line with Labour Act, 2074, which states:
- Minimum wages must be set considering cost of living and inflation.
- Employers are legally required to comply with the wage structure.
- Non-compliance may result in fines and legal consequences.
Recent details of Minimum Wage in Nepal
| Year (AD/BS) | Monthly Minimum Wage (NPR) | Remarks |
|---|---|---|
| 2021/22 | 15,000 | Basic: 9,385; Dearness: 5,615 |
| 2023/24 | 17,300 | Basic: 10,820; Dearness: 6,480 |
| 2025 (from July 17) | 19,550 | Basic: 12,170; Dearness: 7,380 |
Impact on Employers and Employees
For Employers:
- Update payroll and HR policies before July 15, 2025.
- Factor in the wage increase while planning operational budgets.
- Ensure compliance to avoid penalties under the Labour Act.
For Employees:
- Improved wages provide financial relief amid rising living costs.
- Better job security and improved quality of life.
How Can Businesses Stay Compliant?
Managing payroll updates and compliance can be challenging. Frontline Consult helps businesses with:
- Payroll processing and compliance
- HR and labor law advisory
- Workforce management solutions
📞 Contact us today for expert guidance on payroll compliance in Nepal.
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