The new minimum wage for private-sector workers went into effect in the current fiscal year. Previously, the government decided to raise the minimum wage for private-sector workers beginning on Saun 1 (July 16), which marks the start of the new fiscal year. Private workers, with the exception of tea estate workers, are now eligible for Rs 15,000 per month.
Previously, on International Workers’ Day, former Prime Minister KP Sharma Oli announced an increase in the minimum wage for private-sector workers. With the implementation of the new provision, a worker will receive Rs 9,385 as basic scale salary and Rs 5,615 as dearness allowance, for a total of Rs 15,000.
Similarly, daily wage earners will receive Rs 361 as basic daily remuneration and Rs 216 as dearness allowance. This means they will each receive Rs 577 per day. Similarly, hourly workers will be paid Rs 77 per hour, with Rs 48 as basic pay and Rs 29 as dearness allowance.
Prior to this, the monthly minimum wage for private-sector workers was Rs 13,450. According to the Labour Act, 2074 BS (2017), minimum wages must be revised every two years. The government had to revise it last year, but the government decided to implement it only from the current fiscal year, citing the nation’s economy’s decline as a result of the COVID-19 pandemic.
According to the Ministry of Labour, Employment, and Social Security, employers should provide their employees with additional benefits such as contribution-based social security, provident fund, and gratuity as required by existing laws, in addition to the fixed minimum wage.
No employer may make a contract of employment that promises a wage less than the government’s minimum wage. A notice about the increase in the minimum wage has already been published in the national gazette.
Meanwhile, the government has set a minimum wage for tea estate workers. According to the revised rule, tea leaf pickers will be paid Rs 12,081 per month, up from Rs 11,561 prior to the new increase.