The Government of Nepal raised the minimum monthly wage to NPR 19,550 effective from Shrawan 1, 2082 BS (17 July 2025), replacing the previous rate of NPR 17,300 that had been in effect since 2080. This represents a 13% increase and was reached through a tripartite agreement among the government, employer associations, and trade unions at the Ministry of Labour, Employment and Social Security.
The new wage structure was published in the Nepal Gazette on 5 Shrawan 2082 (21 July 2025) and is mandatory for all employers in Nepal. This guide covers the complete breakdown of current rates, the legal framework under the Labour Act, 2074 (2017), historical comparisons, tea estate rates, and compliance requirements.
The minimum wage in Nepal consists of two components: basic salary (at least 60% of total) and dearness allowance (to offset inflation and rising cost of living).
| Component | Monthly (NPR) | Daily (NPR) | Hourly (NPR) |
|---|---|---|---|
| Basic salary | 12,170 | 469 | 63 |
| Dearness allowance | 7,380 | 285 | 38 |
| Total minimum wage | 19,550 | 754 | 101 |
Part-time hourly workers are entitled to NPR 107 per hour (a slightly higher rate to compensate for lack of monthly benefits).
These rates apply to all workers and employees regardless of employment status (full-time, part-time, contract, temporary) or length of service, across all sectors except tea estates which have a separate wage structure.
Workers in tea estates and tea gardens have a separately fixed minimum wage structure:
| Component | Tea Estate Rate |
|---|---|
| Monthly basic salary | NPR 8,934 |
| Monthly dearness allowance | NPR 13,893 |
| Total monthly wage | NPR 17,827 |
| Daily wage | NPR 500 |
| Hourly wage | NPR 66 |
Tea estate workers also receive additional allowances such as daily bonuses for workers in tea factories and gardens as mandated by the gazette notification. The tea estate wage reflects the unique working conditions and seasonal nature of tea production in Nepal.
Nepal reviews the minimum wage every two years under Section 107 of the Labour Act. Here is how the minimum wage has evolved:
| Fiscal Year (BS) | Effective Date | Monthly Wage (NPR) | Basic Salary | Dearness Allowance | % Increase |
|---|---|---|---|---|---|
| 2082/83 | July 17, 2025 | 19,550 | 12,170 | 7,380 | +13.0% |
| 2080/81 | August 17, 2023 | 17,300 | 10,820 | 6,480 | +15.3% |
| 2078/79 | July 2021 | 15,000 | — | — | — |
The consistent increases reflect the government's effort to keep wages aligned with inflation and the rising cost of living in Nepal.
Full-time monthly employees receive NPR 19,550 per month, consisting of NPR 12,170 basic salary and NPR 7,380 dearness allowance. The basic salary must constitute at least 60% of the total remuneration as per applicable regulations.
Workers paid on a daily basis receive NPR 754 per day (NPR 469 basic + NPR 285 dearness allowance). This applies to construction workers, factory labourers, hotel staff, and other daily-wage workers.
Hourly workers receive NPR 101 per hour (NPR 63 basic + NPR 38 dearness allowance). Part-time hourly workers are entitled to NPR 107 per hour to compensate for the absence of monthly benefits and allowances.
The Social Security Fund (SSF) contribution of 31% applies on the basic salary component. For a minimum-wage worker:
| SSF Component | Rate | Amount on NPR 12,170 Basic |
|---|---|---|
| Employee contribution | 11% | NPR 1,339 |
| Employer contribution | 20% | NPR 2,434 |
| Total SSF deposit | 31% | NPR 3,773 |
| Employee take-home after SSF | — | NPR 18,211 (19,550 − 1,339) |
The minimum wage in Nepal is governed by the following legal provisions:
| Law / Section | Provision |
|---|---|
| Labour Act, 2074 (2017) — Section 3(2) | Employers cannot enter agreements paying less than government-prescribed minimum wage |
| Labour Act — Section 106 | Ministry must publish minimum wage in Nepal Gazette; comes into force on first day of new fiscal year |
| Labour Act — Section 107 | Minimum Remuneration Fixation Committee must review and recommend minimum wage every two years |
| Labour Rules, 2075 (2018) | Details the process and calculation methodology for minimum wage determination |
| Nepal Gazette (5 Shrawan 2082) | Published the current NPR 19,550 minimum wage notification |
The Minimum Remuneration Fixation Committee is responsible for reviewing economic conditions and recommending wage levels. The committee includes representatives from the Government of Nepal, registered trade unions, and employers' associations. The committee conducts its review every two years, considering inflation, cost of living, economic growth, and productivity factors.
Once the committee makes its recommendation, the Ministry of Labour, Employment and Social Security makes the final decision. If the committee cannot reach consensus, the Ministry has the authority to set the wage independently. The new rate is then published in the Nepal Gazette and becomes effective from the first day of the new fiscal year (Shrawan 1).
| Category | Covered? | Notes |
|---|---|---|
| Private-sector full-time employees | Yes | All industries and businesses |
| Part-time and contract workers | Yes | Same rates apply regardless of employment type |
| Daily-wage labourers | Yes | NPR 754/day minimum |
| Hotel and hospitality staff | Yes | NPR 754/day or NPR 101/hour |
| Security guards | Yes | Same minimum wage applies |
| Factory workers | Yes | Including manufacturing and industrial sectors |
| Tea estate workers | Separate rate | NPR 17,827/month (own structure) |
| Government employees | No | Separate government pay scale applies |
The minimum wage applies to all workers irrespective of employment status or length of service. New hires, probationary employees, and long-term staff all receive at least the minimum wage.
Employers must comply with minimum wage requirements or face legal consequences:
| Requirement | Detail |
|---|---|
| Pay at least NPR 19,550/month | Or equivalent daily/hourly rate for non-monthly workers |
| Salary breakdown | Pay stub must show basic salary and dearness allowance separately |
| SSF compliance | 31% SSF contribution on basic salary (20% employer + 11% employee) |
| Festival allowance | Minimum one month's basic salary annually as statutory benefit |
| Records | Maintain clear records of wages paid, hours worked, and deductions |
| Non-compliance penalty | Fines and legal action through labour authorities; workers can file complaints |
The government conducts workplace inspections to ensure compliance. Workers who are paid below minimum wage can report violations to the Department of Labour and Occupational Safety or their local labour office without fear of retaliation.
While the minimum wage sets the legal floor for compensation, it is important to understand that it differs from a living wage. The minimum wage of NPR 19,550 is the lowest amount an employer can legally pay. A living wage, however, is the amount needed to cover all basic necessities comfortably — including rent, food, transportation, healthcare, and education.
In urban areas like Kathmandu, a small room can cost NPR 10,000+ per month, and basic food expenses can exceed NPR 7,000. This means the minimum wage may not fully cover living costs in major cities, though it provides a stronger safety net in rural areas where costs are lower.
Under Section 107 of the Labour Act, the minimum wage must be reviewed every two years. The Minimum Remuneration Fixation Committee conducts the review based on inflation data, consumer price indices, economic growth, and tripartite consultations. The next review is expected in FY 2084/85 (2027/28), though extraordinary economic circumstances could trigger an earlier revision.
| Stakeholder | Impact |
|---|---|
| Workers | Higher monthly income (NPR 2,250 increase), better purchasing power, improved financial security, SSF benefits calculated on higher base |
| Employers | Increased payroll costs (~13%), higher SSF employer contributions, need to update payroll systems, budget adjustments required |
| Economy | Increased consumer spending, potential inflationary pressure, improved worker retention and productivity |
For guidance on employment law compliance, payroll structuring, or labour disputes in Nepal, our team at Nepal Divorce Services can connect you with experienced legal professionals. For related topics, see our guides on Labour Act provisions, Social Security Fund (SSF) registration, and employment termination procedures.
The current minimum wage in Nepal is NPR 19,550 per month, effective from Shrawan 1, 2082 BS (17 July 2025). This consists of NPR 12,170 basic salary and NPR 7,380 dearness allowance. The daily rate is NPR 754 and the hourly rate is NPR 101.
The minimum wage was last increased on 17 July 2025 (Shrawan 1, 2082 BS) when the government raised it from NPR 17,300 to NPR 19,550 per month — a 13% increase. The decision was published in the Nepal Gazette on 5 Shrawan 2082 (21 July 2025) following a tripartite agreement among the government, employer associations, and trade unions.
The minimum daily wage in Nepal is NPR 754 per day (NPR 469 basic salary + NPR 285 dearness allowance), effective from Shrawan 1, 2082 BS. This rate applies to construction workers, factory labourers, hotel staff, and all other daily-wage workers across all sectors except tea estates.
The minimum hourly wage is NPR 101 per hour (NPR 63 basic + NPR 38 dearness allowance). Part-time hourly workers are entitled to a slightly higher rate of NPR 107 per hour to compensate for the absence of monthly benefits and allowances.
Tea estate workers have a separate minimum wage structure. Their monthly wage is NPR 17,827 (NPR 8,934 basic salary + NPR 13,893 dearness allowance). The daily wage is NPR 500 and hourly wage is NPR 66. Tea workers also receive additional allowances such as daily bonuses for factory and garden work.
The total minimum wage of NPR 19,550 per month is split into two components: basic salary of NPR 12,170 (approximately 62% of total) and dearness allowance of NPR 7,380 (approximately 38%). The basic salary must constitute at least 60% of the total remuneration as per regulations. SSF contributions are calculated only on the basic salary portion.
Yes. The minimum wage applies to all workers and employees regardless of employment status — full-time, part-time, contract, or temporary — and regardless of length of service. It covers all private-sector industries. The only exceptions are government employees (who have a separate pay scale) and tea estate workers (who have their own minimum wage structure).
The Minimum Remuneration Fixation Committee, consisting of representatives from the government, trade unions, and employers' associations, reviews economic conditions and recommends wage levels. The Ministry of Labour, Employment and Social Security makes the final decision and publishes it in the Nepal Gazette. If the committee cannot reach consensus, the Ministry sets the wage independently.
Under Section 107 of the Labour Act, 2074 (2017), the minimum wage must be reviewed every two years. The Minimum Remuneration Fixation Committee conducts the review based on inflation, cost of living, and economic conditions. The next review is expected in FY 2084/85 (2027/28), though extraordinary circumstances could trigger an earlier revision.
Paying below minimum wage is a violation of the Labour Act. Workers can file complaints with the Department of Labour and Occupational Safety or their local labour office. Employers face fines and legal action. The government conducts workplace inspections to ensure compliance. It is illegal for employers to enter into any agreement paying less than the government-prescribed minimum wage.
SSF contributions are calculated on the basic salary of NPR 12,170: the employee contributes 11% (NPR 1,339) and the employer contributes 20% (NPR 2,434), totalling NPR 3,773 per month. After the employee's SSF deduction, the take-home pay for a minimum-wage worker is approximately NPR 18,211.
Before the July 2025 increase, the minimum wage was NPR 17,300 per month (NPR 10,820 basic salary + NPR 6,480 dearness allowance), set in FY 2080/81 (August 2023). Before that, it was NPR 15,000 per month from FY 2078/79 (July 2021). Each revision has followed the biennial review mandated by the Labour Act.
Yes. Hotel employees (cleaners, waiters, kitchen staff), security guards, and all other private-sector workers are covered by the minimum wage of NPR 754 per day or NPR 101 per hour. There are no exemptions based on industry type for private-sector workers other than the separate tea estate rates.
The minimum wage (NPR 19,550/month) is the legal floor — the lowest amount an employer can pay. A living wage is the amount needed to cover all basic necessities comfortably, including rent, food, transportation, and healthcare. In cities like Kathmandu, basic living costs often exceed the minimum wage, making it difficult for minimum-wage earners to cover all expenses in urban areas.
Yes. Under the Labour Act, employers must pay a festival allowance of at least one month's basic salary annually as a statutory benefit, in addition to the regular monthly wage. This is separate from the minimum wage and is typically paid before Nepal's major festivals (Dashain/Tihar).
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