Blog

Minimum wage/remuneration in Nepal

By Arch Legal Services On 08-08-2022Category : Uncategorized

Minimum wage/remuneration in Nepal

Minimum Wage/remuneration (commonly known as Minimum salary) is the provision/practice of fixation of minimum rate of wages for the workers employed in any employment sector. The Labour act 2017 (2074) delegates the right to set the minimum wage/remuneration to the Government of Nepal, Ministry of labour, employment and social security. Using this right given by the Labour Act, the Ministry revises the Minimum wage/remuneration scale in every 2 years.

Recently the Ministry has revised the Minimum wage/remuneration of the employees/workers publishing a Notice in Gazette on 3rd May, 2021 (2078.01.20). The revised Minimum remuneration/wages of the employees prescribed by the Government is as below which shall be applicable from 16 July, 2021.

S.N.

Minimum Wage/Remuneration

Basic Wage/Remuneration

Dearness Allowance

Total

1.

Monthly

9,385/-

5,615/-

15,000/-

2.

Daily

361/-

216/-

577/-

3.

Hourly

48/-

29/-

77/-

Note:

In addition to the above-mentioned salary amount, benefits for the employee (e.g. Provident Fund and gratuity), Contribution-based Social Security Fund (SSF) applicable as per law shall be provided by the employer to the employee.

Local Government has been authorized to set the Minimum wage however, they have been restricted to set minimum amount than mentioned here.

Law disallows the employers to enter into any employment agreement setting the minimum wage than demarcated herein.

Minimum wage for the workers working in the tea estate:

S.N.

Minimum Wage/Remuneration

Basic Wage / Remuneration

Dearness Allowance

Total

1.

Monthly

7,7695/-

4,312/-

12,081/-

2.

Daily

281/-

154/-

435/-

3.

Hourly

37/-

20/-

57/-

4.

Additional allowance (This shall be applicable to workers working in tea factory or tea purifying unit, workers working in the tea estate and the security persons)

-

-

55/-