KATHMANDU, May 29: The government has proposed a plan to increase wages of private sector workers. The Cabinet meeting held last week approved the plan to review wage rates within the next year based on inflation.
The government announced that workers' wages would be reviewed as per the recommendation of the High-Level Economic Reforms Advisory Commission’s report prepared by a team of experts led by Rameshwar Khanal.
According to the plan, workers' wages will be reviewed within the next year. Currently, the minimum wage for workers is Rs 17,300 per month. 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 decided six months ago to review the minimum wage for workers and the 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, the government is under pressure to increase workers’ wages due to its plan to increase the salaries of government employees. According to sources at 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 government employees and private sector workers, the government aims to satisfy everyone by raising wages this time.
The government had previously set the minimum wage for workers, except those in tea gardens, at Rs 17,300 per month effective from July 17, 2023.
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 part-time basis, the basic hourly wage is Rs 95.
In 2007, the government passed the Labour Regulation and fixed the minimum wage for the first time. The basic salary was set at Rs 3,300 per month.
The government by replacing the Labour Act 1992 enacted the Labour Law in 2017. The New Labour Act seeks to create a more stable and equitable labor environment in Nepal, fostering improved relationships between the workers and industrialists. It has also sought to revise the minimum pay to workers every two years. However, almost every year, various labour unions have been expressing their dissatisfaction over the minimum wage rate set by the government.
