The Government of Nepal has recently amended the minimum wage under Labor Act, 2017 (2074) (“Labor Act”) by publishing a notice in Nepal Gazette Part 5, Volume 73, Number 24, dated August 17, 2023 (2080-04-32) (“Gazette Notice”).
Separate minimum wage has been fixed for the workers/employees working in tea estate (“Tea Estate Minimum Wage”) and the workers/employees working in enterprises other than tea estate (“Other Enterprises Minimum Wage”).
The minimum wage is applicable to all workers/employees irrespective of status of the employment or the length of service. Section 3(2) of the Labor Act prohibits an employer from entering into an agreement with its employee for paying remuneration/wage and benefits that are less than prescribed by the Government of Nepal. Therefore, the prescribed minimum wage is mandatory.
Section 106 of the Labor Act mandates the Ministry of Labor, Employment and Social Security to publish the minimum remuneration in the Nepal gazette and such minimum remuneration shall come into force on the first day of the new financial year.
| S.N. | Nature of Payment | Minimum Monthly Remuneration (in NPR) | Dearness Allowances (in Rs.) | Total (in Rs.) |
| 1. | Monthly | 8,934/- | 4,959/- | 13,893/- |
| 2. | Daily Wages | 323/- | 177/- | 500/- |
| 3. | Per hour | 43/- | 23/- | 66/- |
| 4. | Daily Allowances for the workers at tea refinery and tea factories including Sardar, Naike and Gatekeeper working in the tea estate | – | – | 63/- |
| S.N. | Nature of Payment | Minimum Monthly Remuneration (in NPR) | Dearness Allowances (in Rs.) | Total (in Rs.) |
| 1. | Monthly | 10,820/- | 6,480/- | 17,300/- |
| 2. | Daily Wages | 418/- | 250/- | 668/- |
| 3. | Per hour | 56/- | 33/- | 89/- |
| 4. | Per hour minimum remuneration of the part time employees | – |
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