Empowering Workers: Nepal Raises Minimum Monthly Wage to NPR 17,300

Introduction

In a groundbreaking move, Nepal’s Government has recently elevated the Minimum wage in Nepal for workers to NPR 17,300. This milestone decision, announced by the Ministry of Labour, Employment, and Social Security, is set to take effect on 17th July 2023. This transformation signifies Nepal’s commitment to enhancing its labor force’s financial well-being.

Understanding the Change of minimum wage in Nepal

The Nepal Government, through the Ministry of Labour, Employment, and Social Security, has unveiled an increase in the minimum monthly wage for workers. This change aims to ensure fairer compensation and improved livelihoods for the country’s workforce.

Key Highlights

Effective Date: The revised minimum wage will be effective from 1st Shrawan, 2080 (17th July 2023).
Comprehensive Compensation: Workers will now receive a base salary of NPR 10,820 along with a Dearness Allowance of NPR 6,480 resulting in a total monthly wage of NPR 17,300.
Breakdown: The enhanced minimum wage structure is illustrated below:

1. Applies to all the laborers other than those working in a tea estate

S.N	Minimum Pay	Basic Pay	Dearness Allowance	Total (Rs.)
1.	Monthly	10,820	6,480	17,300
2.	Daily	418	250	668
3.	Hourly	56	33	89
4.	Part-timers Hourly Pay	–	–	95

2. Applies to all the laborers working in a tea estate

S.N	Minimum Pay	Basic Pay	Dearness Allowance	Total (Rs.)
1.	Monthly	8,934	4959	13,893
2.	Daily	323	177	500
3.	Hourly	43	23	66
4.	Daily allowances for tea processing Sardar, Naike, and Guard	–	–	63

Additional information on the provisions of the minimum wage law in Nepal:

• All employers must pay their workers the minimum wage of NPR 17,300 per month plus Social Security Contribution.
• In addition to the minimum wage, employers must also provide workers with labor contract/appointment letters, provident funds, and gratuities.
• The minimum wage does not apply to tea plantation workers.
• The minimum wage can be adjusted up or down depending on the cost of living and other economic factors.
• Employers who do not pay their workers the minimum wage can be fined or imprisoned.

Conclusion

The shift towards a minimum monthly wage of NPR 17,300 underscores Nepal’s commitment to uplifting its labor force. As this progressive change takes effect, it is anticipated to bring positive changes to the lives of workers and contribute to the nation’s overall economic development.