FNCCI Calls for Reconsideration of Minimum Wage Determination

The Federation of Nepalese Chamber of Commerce & Industries (FNCCI) has formally conveyed its stance on the Nepal government's recent decision regarding the minimum wage for workers, urging a review and revision of the currently established minimum wage.

Amid economic challenges, the federation asserts that specific policy reforms and provisions are essential to sustain worker wages and promote the growth of business enterprises. The FNCCI's recommendations include:

Salary-Dearness Allowance Ratio: The federation suggests adhering to a 60-40 ratio, as per labor regulations and historical practice, allocating 60 percent to unencumbered salaries and 40 percent to dearness allowance.

Tea Plantation Minimum Wages: Acknowledging the unique agricultural nature of the tea industry, where 70 percent of production costs stem from worker wages, the FNCCI calls for a comprehensive review and adjustment of minimum wages for tea plantations. This review should consider wage levels for tea workers in neighboring countries.

Supporting Indigenous Industries: The FNCCI emphasizes the need to implement, in practice, provisions within policies and programs that encourage the purchase of goods produced by indigenous industries, particularly small and domestic enterprises. Even if the prices of such goods are up to 20 percent higher than imports, strict adherence to this policy should be ensured.

Price Relief Measures: To alleviate the impact of rising prices, the federation recommends the establishment of fair-price shops and the issuance of ration cards for essential food and consumer goods, benefiting workers.

Industry-Specific Minimum Wage: The FNCCI proposes implementing minimum wage rates tailored to the nature of the industry and the geographical area, recognizing the diversity of economic conditions.

Facilitating Industry Shutdown: In situations where market demand, competition, and economic conditions pose challenges to the operation of industries, the federation advocates for a streamlined process to facilitate the closure of such businesses.

The FNCCI's suggestions aim to address the complexities of wage determination and industry dynamics, promoting fairness and sustainability in labor and business practices.