Minimum Wage in Nepal 2080 (Updated)

What is Minimum Wage in Nepal?

Minimum wage is the lowest remuneration that employers are legally compelled to pay their employees for work performed within a particular jurisdiction, industry, or job category.

It is generally mandated by labor laws or government regulations. The minimum wage may be set on an hourly, daily, weekly, or monthly basis, depending on the prevailing labor laws.

Periodically, governments or pertinent authorities assess and have the authority to modify minimum wage rates.

What are the Laws governing Minimum Wage in Nepal?

The Labor Act, specifically Section 106 and Section 107, pertain to the establishment of the Minimum Renumeration Fixation Committee in Nepal and the determination of the minimum renumeration.

The labor regulations have delineated the process and precise amounts of said wages. In addition, the most recent Gazette Notification published by the Nepalese government revises the Least Wage in Nepal to a level lower than the global average.

What is the Basic Salary and Allowance in Nepal?

As per the most recent notification published in the Nepal Gazette, the monthly minimum wage in Nepal is established at Rs. 17,300. Minimum remuneration consists of the dearness allowance and minimum basic remuneration, which are its two primary components.

The monthly minimum fundamental remuneration is designated as Rs. 10,820. This amount, which must account for at least 60% of the aggregate remuneration in accordance with the applicable regulations, constitutes a significant portion of the total minimum wage.

The monthly dearness allowance, which is included in the total minimum remuneration, is fixed at Rs. 6,480. Frequently, the purpose of dearness allowance is to mitigate the effects of inflation and escalating cost of living.

What is the hourly minimum wage in Nepal?

Based on various employment modes, Nepal’s minimum wage rates are structured. The minimum wage for hourly employment is specified as follows: individuals who are granted compensation on an hourly basis are entitled to a minimum of 56 in remuneration, which functions as the foundational salary.

Furthermore, an hourly dearness allowance of 33 is included, bringing the total exhaustive minimum remuneration to 89 inclusive. It is advisable for both employers and employees to be aware of these designated rates in order to comply with labor regulations.

What is the Minimum Wage for Worker in Nepal?

The minimum wage structure establishes variable compensation based on various modes of employment within the tea industry in the context of tea workers in Nepal.

The minimum monthly remuneration for employees is 8,934, which is comprised of a dearness allowance of 13,893 and a basic pay of 4,959. A minimum daily remuneration of 323 is provided to daily wage laborers, which comprises a dearness allowance of 177, for a grand total of 500 per day.

Employees who are paid on an hourly basis are entitled to a minimum hourly remuneration of 43, in addition to a dearness allowance of 23 per hour, for a grand total of 66 per hour.

Additionally, daily allowances of 63 are established for specific positions, including those of laborers in tea factories and refineries, and gatekeepers on tea estates.

Who Fixes Minimum Wage in Nepal?

The provisions enumerated in Section 107 of the pertinent legislation in Nepal govern the fixation of the minimum wage.

The Ministry is tasked with determining the minimum remuneration for laborers in accordance with these regulations, and the Minimum Remuneration Fixation Committee is involved.

It is the responsibility of the Ministry to establish the minimum remuneration for laborers every two years, in accordance with the Minimum Remuneration Fixation Committee’s recommendations.

However, the Ministry has the authority to intervene and determine the minimum remuneration if the Minimum Wage Fixation Committee is unable to reach a consensus and recommend it.

The Ministry is obligated to disclose the minimum remuneration in a transparent and easily accessible manner through publication in the Nepal Gazette, following the determination of said amount.

According to this section, the minimum remuneration is scheduled to be implemented on the initial day of the upcoming fiscal year. Additionally, it is crucial to keep in mind that when determining the minimum remuneration in accordance with other applicable laws, it cannot be set at a level below the remuneration established in accordance with the regulations.

What is the Minimum Renumeration Fixation Committee?

The regulatory entity known as the Minimum Remuneration Fixation Committee was instituted by the Ministry in accordance with the pertinent legal provisions.

The committee is responsible for determining and recommending the minimum remuneration for employees. The committee’s membership is explicitly delineated and includes individuals who are representatives of the Nepalese government, trade unions, and employers’ associations.

The committee has the primary duty to recommend the minimum employment remuneration for laborers, and it has the authority to do so either nationally, encompassing the totality of Nepal, or for particular businesses, industries, or employment sectors.

The determination of the criteria by which the committee recommends minimum remuneration falls under the jurisdiction of the committee’s members. The reviews conducted by the minimum remuneration fixation committee adhere to a well-defined schedule.

The committee commences the examination of the minimum remuneration for a revision every two years, commencing in mid-April, during the month of Baishak.

How often is Minimum Wage fixed?

The Minimum Wage is established by the Notification of Nepal Gazette every two years.

Conclusion

Minimum wage in Nepal is the lowest remuneration legally mandated for employees, established by government regulations or labor laws. The fixation of minimum remuneration in Nepal is governed by the Labor Act, specifically Sections 106 and 107, as well as the Labor Rules.

The minimum remuneration is established by the Ministry in accordance with the Minimum Remuneration Fixation Committee’s recommendations. The Ministry has the authority to intervene if a consensus cannot be reached by the committee.

The publication of the fixed minimum remuneration in the Nepal Gazette precedes its implementation at the start of the subsequent fiscal year. The government, trade unions, and employers’ associations all have representatives on the Minimum Remuneration Fixation Committee, which works to recommend minimum remuneration for employees.

Disclaimer: This article is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication or solicitation. Specific advice of professionals must be sought for each case.

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