The Government of Nepal, Ministry of Labor, Employment and Social Security published a notice on 20 Baisakh, 2078 B.S. (3 May, 2021 A.D.) concerning the minimum remuneration paid to employees (“Minimum Remuneration Notice”). The notice has revised the minimum remuneration of employees other than those working in tea estate. 

The existing minimum monthly remuneration is NRs. 13,450 and has now been revised to NRs. 15,000. The decision will be in effect from 1st Shrawan, 2078 B.S (16 July, 2021).

Revised Minimum Remuneration

Periodical basisBasic Remuneration (NRs.)Dearness Allowance (NRs.)Total Minimum Remuneration (NRs.)

Effective Date: 1st of Shrawan, 2078 (16 July, 2021)

  1. In addition to the remuneration specified above, benefits including Provident Fund and Gratuity and benefits under other prevailing laws should be availed to the employees.
  2. Local bodies in determining the minimum remuneration for construction works and other services within its jurisdiction under Local Government Operation Act, 2074 shall not determine remuneration less than prescribed above.
  3. No employment agreement may be concluded in order to fix remuneration lesser than that prescribed above. 

Minimum Remuneration of Employees Working in Tea Estate

The Minimum Remuneration Notice above has not revised the minimum remuneration of employees working in tea estate. The effective minimum remuneration of employees working in tea estate is as follows:

Periodical basisBasic Remuneration (NRs.)Dearness Allowance (NRs.)Total minimum remuneration (NRs.)
Daily Allowance of Employees working in Tea Factory or Tea Processing including security, leader of the tea estate42

Note: The above Minimum Remuneration Notice is not applicable to employees for whom a separate notice is issued by the Government of Nepal such as working journalists.

Disclaimer: This note shall not be treated as legal opinion and it is advised to consult a lawyer for legal advice. This note is for general understanding only. 

Please note that the copyright for this note vests on Vidhi Legal Concern.