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Every worker in Nepal — whether in a factory, hotel, office, or tea garden — is legally entitled to a minimum wage set by the Government of Nepal. Yet thousands of employees across the country are paid below the legal minimum, often because they do not know the current rates or their rights under the law. If you are an employee wondering whether your salary meets the legal standard, or an employer trying to stay compliant, this guide covers everything you need to know.
As of Shrawan 1, 2082 BS (July 15, 2025), the Government of Nepal revised the national minimum wage to NPR 19,550 per month. This rate was fixed through a tripartite agreement among the government, employer associations, and trade unions under the provisions of the Labour Act 2074 (2017).
Nepal's minimum wage for 2082/83 BS (2025/26) is NPR 19,550 per month — comprising NPR 12,170 basic salary and NPR 7,380 dearness allowance. Daily wage workers earn a minimum of NPR 754 per day, and hourly workers earn NPR 101 per hour. Tea plantation workers have a separate rate of NPR 13,893 per month. Employers who pay below minimum wage face fines and legal action under the Labour Act 2074.
For workers facing wage disputes or illegal deductions, our guide on the Labour Court in Nepal explains how to file a formal complaint against your employer.
Current Minimum Wage in Nepal (2082/83 BS)
The Government of Nepal revises the minimum wage every two years as mandated by Section 106 of the Labour Act 2074. The latest revision took effect on Shrawan 1, 2082 BS (July 15, 2025), raising the minimum monthly wage from NPR 17,300 to NPR 19,550 — an increase of approximately 13 percent.
| Wage Component | Monthly (NPR) | Daily (NPR) | Hourly (NPR) |
|---|---|---|---|
| Basic Salary | 12,170 | 468 | 56 |
| Dearness Allowance | 7,380 | 286 | 33 |
| Total Minimum Wage | 19,550 | 754 | 89 |
This wage applies to all formal-sector employees across Nepal — including factories, offices, shops, restaurants, and industrial establishments. The rate is uniform regardless of whether the worker is unskilled, semi-skilled, or skilled. Nepal does not currently differentiate minimum wage by skill category under the Labour Act 2074.
Key Points About the Current Rate
- Effective date: Shrawan 1, 2082 BS (July 15, 2025)
- Previous rate: NPR 17,300 per month (2080/81 BS)
- Increase: NPR 2,250 (approximately 13%)
- Payment deadline: Employers must pay wages within 7 days of the end of the wage period
- Applies to: All employees in formal employment, regardless of skill level
Minimum Wage by Sector
While the general minimum wage of NPR 19,550 applies to most workers, certain sectors have separate rates fixed by the Minimum Wage Fixation Committee. The table below compares rates across sectors.
| Sector | Monthly (NPR) | Daily (NPR) | Hourly (NPR) |
|---|---|---|---|
| General (Factories, Offices, Shops) | 19,550 | 754 | 89 |
| Tea Plantation Workers | 13,893 | 500 | 66 |
Tea Plantation Worker Wage Breakdown
Tea plantation workers have a distinct wage structure because the tea industry has historically operated under separate wage agreements. The breakdown for tea estate workers is as follows:
- Basic salary: NPR 4,959 per month
- Dearness allowance: NPR 8,934 per month
- Total monthly wage: NPR 13,893
- Daily wage: NPR 500 (NPR 323 basic + NPR 177 allowance)
- Hourly wage: NPR 66 (NPR 43 basic + NPR 23 allowance)
Minimum Wage for Domestic Workers
Domestic workers — including house helpers, cooks, and caretakers working in private households — remain one of the most vulnerable employment categories in Nepal. While the Labour Act 2074 technically covers all workers, enforcement of minimum wage for domestic workers has been historically weak. The government has not published a separate minimum wage notification specifically for domestic workers.
In practice, domestic workers should be entitled to the general minimum wage of NPR 19,550 per month. However, advocacy groups and labour organisations continue to push for stronger protections and a dedicated notification for this sector.
If you employ domestic staff or work as a domestic employee, consult our detailed guide on labour law in Nepal to understand the full range of employee rights under the current legal framework.
How Minimum Wage Is Set in Nepal
Nepal uses a tripartite mechanism to set the minimum wage, involving three key stakeholders: the government, employer organisations, and trade unions. This system is established under Sections 106 and 107 of the Labour Act 2074.
The Minimum Wage Fixation Committee
The Minimum Wage Fixation Committee (Nyunatam Parisramik Nirdharan Samiti) operates under the Ministry of Labour, Employment and Social Security (MoLESS). The committee includes representatives from:
- The Government of Nepal (Ministry of Labour)
- Employer associations (e.g., Federation of Nepalese Chambers of Commerce and Industry)
- Trade unions (e.g., General Federation of Nepalese Trade Unions)
Wage-Setting Process
- Study and analysis: The committee studies the cost of living, inflation rate, productivity levels, and overall economic conditions
- Recommendation: Based on its findings, the committee recommends a minimum wage to the Ministry
- Government notification: The Ministry formally declares the revised minimum wage through a notice published in the Nepal Gazette
- Implementation: The new rate takes effect from Shrawan 1 of the relevant fiscal year
The wage is reviewed every two years, as required by the Labour Act. The most recent revision in 2082 BS followed extensive negotiations between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and major trade union federations.
Employer Obligations Under Labour Act 2074
Employers in Nepal have several mandatory obligations regarding minimum wage. Failing to meet these obligations can result in penalties, legal action, and compensation orders. If you run a business, understanding these requirements is essential — especially if you have registered your company in Nepal recently.
Mandatory Employer Duties
| Obligation | Legal Basis | Details |
|---|---|---|
| Pay minimum wage or above | Section 106, Labour Act 2074 | No employee can be paid below NPR 19,550/month |
| Pay within 7 days | Section 108, Labour Act 2074 | Wages must be disbursed within 7 days of the wage period ending |
| Maintain wage records | Labour Rules 2075 | Employers must keep written records of all wage payments |
| SSF contribution | Social Security Act 2074 | Employers must contribute 20% of basic salary to SSF (11% employer + 9% employee deduction) |
| No illegal deductions | Section 109, Labour Act 2074 | Deductions beyond statutory contributions (SSF, tax) are prohibited without written consent |
| Equal pay for equal work | Section 18, Labour Act 2074 | No wage discrimination based on gender, caste, or religion |
Employers must also register employees with the Social Security Fund (SSF) and make monthly contributions calculated on the basic salary component. The SSF contribution is separate from — and in addition to — the minimum wage.
Overtime Pay Calculation
Under the Labour Act 2074, the standard working week is 48 hours over 6 days (8 hours per day). Any work beyond these hours qualifies as overtime and must be compensated at a higher rate.
Overtime Rate
Overtime pay in Nepal is calculated at 1.5 times the regular hourly wage. Here is how to calculate overtime pay based on the current minimum wage:
| Calculation | Amount (NPR) |
|---|---|
| Regular hourly wage | 89 |
| Overtime rate (1.5x) | 133.50 |
| Maximum overtime per week | 24 hours |
| Maximum weekly overtime pay | 3,204 |
Overtime Rules
- Maximum overtime is 24 hours per week (beyond the 48-hour standard)
- Employees under 18 years of age cannot work overtime
- Overtime must be voluntary — employers cannot force overtime without agreement
- Night-shift workers (10 PM to 6 AM) are entitled to additional allowances
If your employer refuses to pay overtime, you can file a complaint at the District Labour Office. For serious disputes, our guide on the Labour Court in Nepal explains the full legal process for claiming unpaid wages.
Allowances on Top of Minimum Wage
The minimum wage of NPR 19,550 already includes the dearness allowance. However, employees may be entitled to additional benefits depending on their employment contract and the nature of their work.
Common Allowances Beyond Minimum Wage
- Festival allowance (Dashain bonus): One month's basic salary, paid before Dashain festival annually
- Gratuity: Payable after continuous service — see our guide on labour law in Nepal for eligibility and calculation
- Provident Fund: Contribution-based retirement benefit under the Provident Fund scheme
- Medical allowance: Some employers provide health-related benefits beyond SSF coverage
- Travel/transport allowance: Common in larger organisations, though not legally mandatory
Employers registered under the Social Security Fund must provide medical, maternity, accident, and old-age benefits as part of the SSF scheme — these are in addition to the minimum wage.
Penalties for Paying Below Minimum Wage
The Labour Act 2074 treats minimum wage violation as a serious offence. Employers who fail to pay the legally mandated minimum wage face the following consequences:
- Fine: The Labour Office can impose fines on non-compliant employers
- Compensation order: The employer may be ordered to pay the difference between the actual wage paid and the minimum wage, plus interest
- Labour Court action: Workers can file a case in the Labour Court seeking back pay and damages
- Business licence implications: Repeated violations can affect the employer's ability to renew business licences and permits
- Criminal liability: In severe cases involving exploitation, the employer may face criminal prosecution
The District Labour Office (Jilla Shram Karyalaya) is the first point of contact for wage complaints. If conciliation fails at the Labour Office level, the case proceeds to the Labour Court.
How to Report Minimum Wage Violations
If you believe your employer is paying you below the minimum wage, you have several options to seek remedy:
Step 1: Gather Evidence
Collect all available documentation, including:
- Salary slips or bank statements showing wage payments
- Employment contract or appointment letter
- Attendance records
- Any written communication about salary
Step 2: Approach the Employer
Before filing a formal complaint, attempt to resolve the matter directly with your employer. Put your request in writing — a written notice creates a record that strengthens your case if the matter escalates.
Step 3: File a Complaint at the District Labour Office
If the employer does not comply, file a written complaint at the District Labour Office (Jilla Shram Karyalaya) in the district where you work. The Labour Office will:
- Summon the employer for a hearing
- Attempt conciliation between the parties
- Issue a directive to the employer if the wage violation is confirmed
Step 4: Escalate to the Labour Court
If the Labour Office conciliation fails or the employer ignores the directive, you can file a case in the Labour Court. The court can order back pay, compensation, and penalties against the employer.
For a step-by-step guide on the court process, read our article on how the Labour Court in Nepal handles employment disputes.
Historical Minimum Wage Revisions in Nepal
Understanding the wage trend helps workers and employers plan for future revisions. Below is a summary of minimum wage changes over the past decade.
| Fiscal Year (BS) | Monthly Minimum Wage (NPR) | Increase (%) |
|---|---|---|
| 2075/76 | 13,450 | — |
| 2077/78 | 15,000 | 11.5% |
| 2079/80 | 17,300 | 15.3% |
| 2082/83 | 19,550 | 13.0% |
The consistent upward trend reflects Nepal's growing cost of living and the ongoing advocacy of trade unions for better worker compensation.
Tax Implications of Minimum Wage
Workers earning the minimum wage of NPR 19,550 per month (NPR 234,600 per year) generally fall below the income tax threshold in Nepal. As of 2082/83 BS, the annual tax-free threshold for individual income is NPR 500,000 for individuals and NPR 600,000 for married couples.
However, employers are still required to deduct and deposit TDS (Tax Deducted at Source) if an employee's total annual income — including overtime, bonuses, and allowances — exceeds the tax threshold. Every worker should also obtain a PAN card for tax compliance purposes.
Minimum Wage and the Social Security Fund
The minimum wage directly impacts Social Security Fund (SSF) contributions. Under the Social Security Act 2074, both employer and employee contributions are calculated as a percentage of the basic salary — not the total minimum wage.
| Contribution | Rate | Amount (NPR) |
|---|---|---|
| Employer contribution | 20% of basic salary | 2,434 |
| Employee deduction | 11% of basic salary | 1,339 |
| Total SSF contribution | 31% of basic salary | 3,773 |
This means for a minimum-wage worker with a basic salary of NPR 12,170, the employer must pay an additional NPR 2,434 per month to the SSF, while NPR 1,339 is deducted from the employee's salary.
For employers, understanding this cost is critical when budgeting total employment costs. The SSF contribution is mandatory for all employers with one or more employees. Learn more about compliance in our guide on SSF Nepal.
Need Legal Advice on Wage Disputes?
Whether you are an employee seeking unpaid wages or an employer wanting to ensure compliance with Nepal's labour laws, our team of experienced lawyers can help. We provide legal advice on minimum wage disputes, SSF compliance, overtime claims, and wrongful termination cases.
Contact our legal team today for a free initial consultation on your employment law matter.
Frequently Asked Questions
The current minimum wage in Nepal for fiscal year 2082/83 BS (2025/26) is NPR 19,550 per month. This includes a basic salary of NPR 12,170 and a dearness allowance of NPR 7,380. The rate was revised effective Shrawan 1, 2082 BS (July 15, 2025).
The daily minimum wage in Nepal is NPR 754 per day for general workers. This applies to daily wage labourers across formal employment sectors including factories, offices, and shops. Tea plantation workers have a separate daily rate of NPR 500.
The hourly minimum wage in Nepal is NPR 89 per hour for general workers, comprising NPR 56 basic pay and NPR 33 dearness allowance. For tea plantation workers, the hourly rate is NPR 66 per hour.
No. Nepal does not differentiate minimum wage by skill category under the Labour Act 2074. The same minimum wage of NPR 19,550 per month applies to all formal-sector employees — unskilled, semi-skilled, and skilled workers alike.
Tea plantation workers in Nepal have a separate minimum wage of NPR 13,893 per month (NPR 4,959 basic + NPR 8,934 dearness allowance). The daily rate is NPR 500 and the hourly rate is NPR 66.
The minimum wage in Nepal is revised every two years as mandated by Section 106 of the Labour Act 2074. The Minimum Wage Fixation Committee, a tripartite body of government, employers, and unions, recommends the new rate to the Ministry of Labour.
Overtime pay in Nepal is 1.5 times the regular hourly wage under the Labour Act 2074. For minimum-wage workers, this means NPR 133.50 per hour for overtime. The maximum overtime permitted is 24 hours per week beyond the standard 48-hour work week.
Employers paying below minimum wage face fines, compensation orders, and legal action under the Labour Act 2074. Workers can file a complaint at the District Labour Office, which can order the employer to pay the difference plus interest. Cases can also be filed in the Labour Court.
You should file a written complaint at the District Labour Office (Jilla Shram Karyalaya) in the district where you work. The office will summon your employer, attempt conciliation, and issue a directive if the violation is confirmed. If unresolved, you can escalate to the Labour Court.
Yes. The minimum wage of NPR 19,550 per month already includes the dearness allowance of NPR 7,380. The dearness allowance is designed to offset the rising cost of living and is a mandatory component of the wage structure set by the government.
Domestic workers are legally entitled to the general minimum wage of NPR 19,550 per month under the Labour Act 2074. However, enforcement for domestic workers in private households remains weak, and no separate minimum wage notification exists specifically for this sector.
The maximum standard working hours in Nepal are 48 hours per week (8 hours per day, 6 days a week) under the Labour Act 2074. Work beyond 48 hours qualifies as overtime and must be compensated at 1.5 times the regular hourly wage.
Yes. The festival allowance (Dashain bonus) is mandatory for all employees who have completed at least one year of service. The bonus equals one month's basic salary and must be paid before the Dashain festival each year, regardless of the employee's wage level.
SSF contributions are calculated on the basic salary component (NPR 12,170), not the total minimum wage. The employer contributes 20% (NPR 2,434) and 11% (NPR 1,339) is deducted from the employee's salary, for a total monthly SSF contribution of NPR 3,773.
The last minimum wage increase in Nepal took effect on Shrawan 1, 2082 BS (July 15, 2025). The monthly minimum wage was raised from NPR 17,300 to NPR 19,550 — an increase of approximately 13%. The next revision is expected in 2084/85 BS.
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