Monday, May 27, 2013

MInimum Wage in Nepal increased to Rs.8,000 per month

KATHMANDU, NEPAL

After one-and-a-half month-long negotiations, a tripartite committee consisting employers, trade unions and the government on Monday agreed to increase the minimum monthly salary of workers by Rs 1,800.

After Monday’s agreement, workers’ basic monthly salary has been increased by 43.66 percent, dearness allowance by 9.44 percent and daily wage by 37.66 percent. “Overall, workers’ minimum monthly wages has been increased by 29 percent,” said Bishnu Rimal, president of the General Federation of Nepalese Trade Unions (GEFONT).

Now, industrial workers will get a minimum monthly salary of Rs 8,000 — a basic salary of Rs 5,100 a month and dearness allowance of Rs 2,900. Earlier, the basic salary was Rs 3,550, while the dearness allowance was 2,650.

The Minimum Wage Determination Committee has recommended the new wage structure to the government for its final approval.

In the negotiations, the trade unions were represented by the Joint Trade Union Coordination Centre (JTUCC), a common forum of 11 trade unions.

“The Minimum Wage Determination committee decided to this effect on Monday. The board will recommend the new wage structure to the Labour Ministry,” said Krishna Hari Puskar, director general of the Department of Labour. According to Puskar, the government is planning to implement the new wage structure within a week by publishing it in the Nepal Gazette.

The pay structure was last revised in March 2011 and was hiked to Rs 6,200 per month. Similarly, Rs 281 and Rs 158 had been fixed as the daily wage for agriculture workers and workers at tea estates, respectively. As per the Labour Act 1992, workers’ minimum salary is reviewed every two years. In Monday’s agreement, employers and trade unions have agreed to give continuity to the agreement on social security. “We have agreed that the Social Security Act should be brought through an ordinance and should be implemented,” said Rimal.

Manish Agrawal, vice-chairman of the Employers’ Council at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said the new salary structure will be implemented in those enterprises where salary is below the limit.

With the agreement, trade unions said they will start collective bargaining agreement (CBA) with enterprises making common negotiation committee.

Interestingly, the agreement on new wage structure has been reached at a time when a trade union affiliated to Mohan Baidya-led CPN-Maoist is still protesting demanding its inclusion in the wage review negotiation process. Accusing the government of excluding it from the wage hike talks, the Nepal Revolution Trade Union Federation (ANRTUF) had launched a protest programme from May 15. On Friday, the ANRTUF organised a one-hour long sit-in on the premises of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). It has demanded the minimum monthly wage be fixed at Rs 15,000 and daily wage at Rs 700.

Source: ekantipur 28th May 2013
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