KATHMANDU, May 28: The government has proposed a plan to increase workers' wages. The Cabinet meeting held on May 20 approved a plan to review wage rates within the next year based on inflation.
When approving the plan to implement the High-Level Economic Reforms Advisory Commission’s report, chaired by Rameshwar Khanal, the government announced that workers' wages would be reviewed.
According to the plan, workers' wages will be reviewed within the next year. Currently, the minimum wage for workers is Rs 17,300. This amount includes a basic wage of Rs 10,820 plus an inflation allowance of Rs 6,480.
NTUC demand minimum wage of workers be determined without delay
The Central Labour Advisory Council had already decided six months ago to review the minimum wage for workers. This decision has also been accepted by the Ministry of Labour, Employment, and Social Security.
Section 107 of the Labour Act 2074 mandates that the minimum wage for workers must be determined every two years. This time, it is due to an increase in employees' salaries, and according to sources from the Ministry of Finance, the government is preparing to raise the minimum wage by 10 percent.
Since it is time to increase wages for both employees and workers, the government aims to satisfy everyone by raising wages this time. The government has also stated that by increasing workers' wages, it will adjust them according to the inflation rate in the market.
The government had previously set the minimum wage for workers, except those in tea gardens, at Rs 17,300 effective from July 17, 2023. This amount included a basic wage of Rs 10,820 and an inflation allowance of Rs 6,480.
The hourly wage for workers is Rs 89, consisting of a basic hourly wage of Rs 56 and an inflation allowance of Rs 33. For workers who work on a partial basis, the basic hourly wage is Rs 95.
