Nepal boosts minimum wage, signals strong support for workers

July 18, Kathmandu: Prime Minister KP Sharma Oli has emphasised that progress depends on labour and prosperity requires respecting workers.

The government has increased the minimum monthly wage to Rs 19,550, effective from the start of the fiscal year 2025/26, up from Rs 17,300. The decision emerged from a tripartite meeting at the Ministry of Labour, Employment and Social Security, involving government officials, employers, and unions. The new wage includes a basic salary of Rs 12,170 and a dearness allowance of Rs 7,380, revised under the Labour Act’s requirement for biennial wage reviews.

This move complements the contribution-based social security scheme, which now covers 2.1 million workers, securing their future. Businesses welcomed the decision as a step toward sustainable labour relations, while unions hailed it as a historic inclusion of workers’ voices. The agreement reflects balanced discussions, addressing rising living costs and fostering stable labour relations.