KATHMANDU, NEPAL
The minimum wage in Nepal as agreed by the employers and trade unionists on Monday is the highest in South Asia. Though Nepal’s minimum wage was the highest in South Asia until two years ago, it had dropped to third after Sri Lanka and the state of Uttar Pradesh in India raised theirs above Nepal’s. The average minimum monthly salary of India at US$ 47 still was lower than that in Nepal.
Entrepreneurs believe that the problem of scarcity of workers in Nepal will decrease after the salary hike. “Our minimum wage has become the highest in South Asia and we hope that it will solve the problem of lack of workers to some extent,” Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pashupati Murarka stated. “We also hope that flight of workforce will be stopped as we have also significantly raised the daily wage along with the minimum monthly salary,” he added. The Nepali wage rate will be the highest in South Asia if the agreement to provide at least Rs 8,000 a month to workers at the industrial enterprises is implemented. It will be implemented once the government publishes it in the Nepal Gazette. Nepal’s minimum monthly salary as agreed will be US$ 90.23 while that in Uttar Pradesh, India is US$ 88 and Bihar is US$ 70.
Sri Lanka pays the highest in this region after Nepal at US$ 77, according to the International Labor Organization (ILO), while that in Pakistan is US$ 70. Indian workers do not want to come to Nepal to work despite higher wages here due to social security programs there. The trend of workers from Uttar Pradesh and Bihar coming even to Kathmandu has stopped in the past few years due to the rising wages there. Entrepreneurs claimed that the Indian workers can now be attracted as the minimum daily wage has been increased to Rs 318 from Rs 230. “We have only agreed on minimum wages. But the workers will benefit as those getting a higher salary previously will also not see their pay reduced,” he added.
Ball in workers’ court
The entrepreneurs have agreed for a greater hike in minimum salary than the Nepal Rastra Bank’s (NRB) inflation data despite taking it as benchmark and have agreed for a rise of over 29 percent despite the NRB data putting the cumulative inflation in the past two years at just 19 percent. Murarka, who is also the chairman of FNCCI’s Employers’ Council said that the entrepreneurs have exercised maximum flexibility to address the rising inflation and flight of workforce. “We have agreed for a 29 percent hike after compromising on a lot of issues. The ball is in the court of trade unionists now,” he stated. Entrepreneurs believe that the agreement reached this year will not be disputed as the previous one as the agreement has been reached in mediation of the government this time.
Minimum Monthly Salary
Country in US$
Nepal 90
Sri Lanka 77
Bangladesh 38
Pakistan 70
Uttar Pradesh (India) 88
Bihar (India) 70
Source: Karobar Daily, 28th May 2013
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The minimum wage in Nepal as agreed by the employers and trade unionists on Monday is the highest in South Asia. Though Nepal’s minimum wage was the highest in South Asia until two years ago, it had dropped to third after Sri Lanka and the state of Uttar Pradesh in India raised theirs above Nepal’s. The average minimum monthly salary of India at US$ 47 still was lower than that in Nepal.
Entrepreneurs believe that the problem of scarcity of workers in Nepal will decrease after the salary hike. “Our minimum wage has become the highest in South Asia and we hope that it will solve the problem of lack of workers to some extent,” Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pashupati Murarka stated. “We also hope that flight of workforce will be stopped as we have also significantly raised the daily wage along with the minimum monthly salary,” he added. The Nepali wage rate will be the highest in South Asia if the agreement to provide at least Rs 8,000 a month to workers at the industrial enterprises is implemented. It will be implemented once the government publishes it in the Nepal Gazette. Nepal’s minimum monthly salary as agreed will be US$ 90.23 while that in Uttar Pradesh, India is US$ 88 and Bihar is US$ 70.
Sri Lanka pays the highest in this region after Nepal at US$ 77, according to the International Labor Organization (ILO), while that in Pakistan is US$ 70. Indian workers do not want to come to Nepal to work despite higher wages here due to social security programs there. The trend of workers from Uttar Pradesh and Bihar coming even to Kathmandu has stopped in the past few years due to the rising wages there. Entrepreneurs claimed that the Indian workers can now be attracted as the minimum daily wage has been increased to Rs 318 from Rs 230. “We have only agreed on minimum wages. But the workers will benefit as those getting a higher salary previously will also not see their pay reduced,” he added.
Ball in workers’ court
The entrepreneurs have agreed for a greater hike in minimum salary than the Nepal Rastra Bank’s (NRB) inflation data despite taking it as benchmark and have agreed for a rise of over 29 percent despite the NRB data putting the cumulative inflation in the past two years at just 19 percent. Murarka, who is also the chairman of FNCCI’s Employers’ Council said that the entrepreneurs have exercised maximum flexibility to address the rising inflation and flight of workforce. “We have agreed for a 29 percent hike after compromising on a lot of issues. The ball is in the court of trade unionists now,” he stated. Entrepreneurs believe that the agreement reached this year will not be disputed as the previous one as the agreement has been reached in mediation of the government this time.
Minimum Monthly Salary
Country in US$
Nepal 90
Sri Lanka 77
Bangladesh 38
Pakistan 70
Uttar Pradesh (India) 88
Bihar (India) 70
Source: Karobar Daily, 28th May 2013
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