In the ever-evolving landscape of Nepal’s labor market, changes in minimum wage rates are crucial for the economic well-being of workers. In recent news, the government has taken significant steps to address this matter. Let’s dive into the details of the basic salary scale in Nepal for the year 2080 B.S. (2023 A.D.).
Minimum Wage Adjustment: Basic Salary Scale in Nepal 2080 B.S./2023 A.D.
The Ministry of Labour, Employment, and Social Security has recently made adjustments to the minimum wage of workers, except for those employed in tea estates. This change is in accordance with Section 106 of the Labour Act, 2017. Effective from August 18, 2023, the minimum wage now in Nepal stands at NPR 17,300 per month.
Breaking down this wage structure, we find that the monthly basic salary is NPR 10,820, accompanied by a dearness allowance of NPR 6,480. Additionally, for daily and part-time workers, new rates have been established. Daily laborers can now expect to earn NPR 668 per day, or NPR 89 per hour, while part-time workers will receive NPR 95 per hour.
This table below summarizes the minimum salary scale for different occupations in Nepal for the year 2023 A.D. (2080 B.S.).
| Occupation | Monthly Basic Salary (NPR) | Monthly Dearness Allowance (NPR) | Total Monthly Salary (NPR) |
|---|---|---|---|
| Domestic Workers | 10,820 | – | 10,820 |
| General Minimum Wage | 10,820 | 6,480 | 17,300 |
| Employees in Tea Estate | 8,934 | 4,959 | 13,893 |
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Comparing with the Past
It’s noteworthy that this change marks a significant increase from the previous minimum wage of NPR 15,000. The former minimum wage consisted of a basic salary of NPR 9,385 and a dearness allowance of NPR 5,615. The adjustment, therefore, represents a positive step towards improving the living standards of workers in Nepal.
Tea Estate Workers
For tea estate workers, the minimum wage has been set at NPR 13,893. This includes a basic salary of NPR 8,934 and a dearness allowance of NPR 4,959. These adjustments have been made to address the specific needs of this sector.
Regular Review
The government’s decision to review the minimum wage every two years is aligned with existing provisions. The last review prior to this change was in the fiscal year 2021-22 when the minimum monthly salary was NPR 13,450. These periodic evaluations ensure that the minimum wage remains relevant and fair for the workforce.
Nepal’s Labor Landscape
Nepal’s private sector plays a significant role in the country’s economy, employing approximately 4.93 million individuals, which accounts for nearly 86 percent of the nation’s labor force. This information is derived from a study titled ‘State of Private Sector in Nepal: Contributions and Constraints,’ conducted jointly by the FNCCI and the International Finance Corporation (IFC).
In conclusion, the adjustment of the minimum wage in Nepal for the year 2080 B.S. (2023 A.D.) reflects the government’s commitment to improving the livelihoods of workers. These changes, in line with the provisions of the Labour Act, are expected to positively impact the workforce, particularly in the private sector, and contribute to a more equitable society.