Minimum Wage / Salary, 2016 (2072)

The Government of Nepal has recently amended the minimum wage under Labor Act, 1992 (2048) (“Labor Act“) by publishing a notices in Nepal Gazette Part 5, Volume 63, Number 43, dated February 01, 2016 (2072-10-18) (“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 21(4) of the Labor Act prohibits an employer from entering into an agreement with its employee for paying salary / wage and benefits that are less than what is prescribed by the Government of Nepal. Therefore, the prescribed minimum wage is mandatory.

A. Tea Estate Minimum Wages:

Different rates of minimum wage / salary have been prescribed for the period (1) commencing on the date of publication of the Gazette Notification (i.e. February 01, 2016) and ending on July 15, 2016 (2073-03-31) (“Current Fiscal Year“), and (2) commencing on July 16, 2016 (2073-04-01) and ending on July 15, 2017 (2074-03-31) (“Post Fiscal Year“).

1. Minimum salary / wage prescribed for the Current Fiscal Year

2. Minimum salary / wage prescribed for Post Fiscal Year

B.   Other Enterprise Minimum Wage:

1. Minimum Wage

2.Effective Date

The Other Enterprise Minimum Wage is effective from the date of publication of the Gazette Notice (February 01, 2016).