Minimum monthly wage hiked to Rs 19,550

KATHMANDU: A consensus has been reached to set the minimum monthly wage for workers at Rs 19,550.

A meeting of the Minimum Wage Determination Committee, which includes representatives from the government, employers, and workers’ organizations, held on Thursday fixed the new wage.

The new wage comprises a basic salary of Rs 12,170 and an allowance of Rs 7,380.

The daily wage has also been increased to Rs 754, while the hourly wage has been set at Rs 101. For part-time workers, the hourly rate has reached Rs 107. However, this revised wage will not apply to tea plantation workers whose wages are determined separately through a different negotiation process.

The new wage will come into effect once the Ministry of Labour officially publishes the decision in the Nepal Gazette, based on the committee’s recommendation. Workers will get the new wage from the month of Shrawan (mid-July to mid-August).

In addition to the wage, employers must also provide workers with entitlements outlined in the Social Security Act, including labor contracts, appointment letters, provident fund contributions and allowances.

As per the Labor Act, the minimum wage must be reviewed every two years, based on inflation, the cost of goods, including food, and the overall economic indicators.

Until the end of Ashadh (mid-July), the minimum monthly wage stood at Rs 17,300.