KATHMANDU, July 17: The provision about the new minimum wage for private sector workers has come into effect from the current fiscal year. Earlier the government had decided to increase the minimum wages for private sector workers beginning from Saun 1 (July 16) which marks the commencement of the new fiscal year.  Now, private workers except for tea estate workers are eligible to draw Rs 15,000 monthly.

Earlier, on the occasion of the International Workers' Day, former Prime Minister KP Sharma Oli had announced to increase the minimum wages of private sector workers. With the implementation of the new provision, a worker shall get Rs 9,385 as basic salary and Rs 5,615 as dearness allowance, totaling Rs 15,000.

Likewise, the daily wage earners shall get Rs 361 as basic daily remuneration and Rs 216 as dearness allowance. It means, they shall each receive Rs 577 daily. Likewise, the workers working on hourly basis shall get Rs 77: Rs 48 as basic payment and Rs 29 as dearness allowance per hour.

Prior to this, the minimum wages for private sector workers was Rs 13,450 monthly. As per the Labour Act, 2074 BS (2017), the minimum wages shall 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 economic downturn due to the COVID-19 pandemic.

The Ministry of Labour, Employment and Social Security has said that employers, in addition to the fixed minimum wages, should ensure other perks and benefits such as  contribution-based social security, provident fund and  gratuity as demanded by the existing laws to their employees.

No employer is allowed to make a contract of employment promising the payment less than the minimum wages determined by the government. A notice about the rise in the minimum wages has already been published in the national gazette.

Meanwhile, the government has fixed the minimum wages for tea estate workers. As per the revised rule, tea leaves pickers shall get Rs 12,081 per month. The amount was Rs 11,561 per month earlier.

Published on: 18 July 2021 | My Republica