Government to Revise Minimum Wage Rate for Workers in the New Fiscal Year 2023-24

Trade unions are pushing for a raise in the minimum wage rate to Rs 25,000 per month, while entrepreneurs argue that it would place a greater financial burden on them.

In preparation for the new fiscal year starting on Monday, the government is intensifying its efforts to revise the current minimum wage for workers.

The Ministry of Labor, Employment, and Social Security has established a committee led by Joint Secretary Dandu Raj Ghimire to examine the issue of minimum wage scales for workers. The government had previously announced in its Policies and Programs for 2023-24 that the minimum wage for workers would be increased.

The committee comprises representatives from various organizations, including the All Nepal Federation of Trade Unions, the Federation of Nepalese Chambers of Commerce and Industry, the Confederation of Nepalese Industries, the Nepal Rastra Bank, and the Ministry of Industry. The committee has recommended taking into account the prevailing inflation rates when reviewing the minimum wage rate.

While several trade unions are demanding an increase in the minimum wage rate to Rs 25,000 per month, many entrepreneurs are urging the government not to raise the wage rate. Entrepreneurs argue that businesses have just begun recovering from the adverse impacts of the COVID-19 pandemic and the Russia-Ukraine war.

The Nepal Trade Union Congress (NTUC), affiliated with the Nepali Congress, organized a protest march on Sunday, demanding higher wages for workers in both the formal and informal sectors. Ajay Kumar Rai, General Secretary of NTUC, emphasized the necessity of increasing the minimum wage as workers struggle to sustain their livelihoods amidst rising inflation. "The minimum wage for workers should be raised from the current Rs 15,000 to Rs 25,000 per month," he was quoted as stating. 

The NTUC called for the establishment of a Labor Commission, worker representation in policy-making processes, and the inclusion of workers in contribution-based social security schemes.

In 2007, the government enacted the Labour Regulation, setting the minimum wage for the first time at Rs 3,300 per month.

The Labour Law of 2017 stipulates that the minimum wage for workers should be revised every two years. Two years ago, the minimum wage was increased from Rs 13,450 to Rs 15,000 per month.

Previously, in the 2018/19 budget, the government raised the minimum wage rate to Rs 13,450 per month, a 38.65 percent increase compared to the previous minimum monthly wage of Rs 9,700.

(Disclaimer: The article is paraphrased from an originial article, while retaining consistency in information for accuracy.)