The government is preparing to revise the minimum wage for private sector workers within the next fiscal year, aligning with inflation trends and growing demands from labor unions. This decision follows the Cabinet’s recent approval of a proposal based on the High-Level Economic Reforms Advisory Commission’s recommendations, led by former Secretary Rameshwar Khanal.
Currently, the minimum monthly wage is Rs 17,300—comprising a basic salary of Rs 10,820 and an inflation allowance of Rs 6,480. The hourly wage for full-time workers is Rs 89, while part-time workers receive Rs 95.
The Central Labour Advisory Council had decided six months ago to initiate a wage review, a move also endorsed by the Ministry of Labour, Employment, and Social Security. Section 107 of the Labour Act 2074 requires a wage revision every two years, though labor unions have often criticized the government for not keeping pace with rising living costs.
Sources at the Ministry of Finance indicate that the government is considering a 10 percent wage hike, in line with its broader plan to raise salaries for government employees. This dual approach aims to maintain parity between public and private sector compensation.
Nepal first introduced a formal minimum wage in 2007, setting the monthly basic salary at Rs 3,300. The Labour Act 2017, which replaced the 1992 version, seeks to foster a fair and balanced labor environment and mandates periodic wage reviews.
With inflation affecting household incomes and increased pressure from workers, the government is under obligation to implement wage hikes that reflect the economic realities of today.
