Government Raises Minimum Salary For Workers To Rs. 17,300

August 18, 2023 | Investopaper

The government has announced a revised minimum salary for workers in the domestic labor market, excluding those employed in tea plantations. The new salary structure, set to take effect from Shrawan of the current financial year, has been increased by 15.33 percent, amounting to 17,300 rupees, inclusive of allowances.

According to the revised structure, the basic monthly salary for workers will now stand at 10,820 rupees. The dearness allowance, a crucial component of the wage, is 6,480 rupees. To ensure the effective implementation of this new pay scale, employers are now required to contribute to the social security fund in accordance with the updated salary structure.

It’s worth noting that this adjustment comes as a notable increase of 2,300 rupees from the initial monthly wage of 15,000 rupees, set in motion on Shrawan 1, 2078 BS, with the basic salary and dearness allowance then being 9,385 rupees and 5,615 rupees, respectively.

For those engaged in daily wage labor, a rate of 668 rupees per day has been established. This daily wage consists of a basic allowance of 418 rupees coupled with a dearness allowance of 250 rupees. Similarly, part-time workers can now expect a minimum hourly wage of 95 rupees.

The new structure varies, however, for workers within the tea plantation sector. Monthly wages of 13,893 rupees will be applicable for this group, comprising a basic salary of 8,934 rupees and a dearness allowance of 4,959 rupees.  However, amidst these changes, there have been notable calls for further adjustments. Tea plantation workers have expressed their concerns, demanding increased daily wages since Ashad 31, inclusion in the contribution-based social security fund, enhanced contract rates, and the implementation of employment contracts.

Data from the Labor Force Survey-2017 reveals that Nepal employs a substantial labor force of 70.86 lakh, predominantly within the domestic labor market. Of these, 44.46 lakh are men and 26.4 lakh workers are women.


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