Ramesh Shrestha

The government has formally fixed the new salary structure for workers. Now, industrial workers will get a minimum monthly salary of Rs 6,200 (basic salary of Rs 3,550 and dearness allowance of Rs 2,650) and daily wage of Rs 231.

The government on Monday formally increased the minimum monthly salary of workers by Rs 1,600 by publishing a notice in the Nepal Gazette. Earlier, the minimum monthly salary of workers was Rs 4,600 (basic salary of Rs 3,050 and dearness allowance of Rs 1,550) and daily wage Rs 190.

The new provision has also decided to bring all workers in the social security system after the Social Security Act comes into effect. “The new salary provision will be effective from March 15 as per the notice in the Nepal Gazette,” said Krishna Hari Pushkar Karna, assistant spokesperson and under secretary at the Ministry of Labour and Transport Management. “There is also a provision of social security for workers, in which employers and employees will contribute 20 percent and 11 percent of the basic salary, respectively.”

According to Karna, the new provision will not be implemented for tea workers.

The government will soon come up with a new salary provision for tea workers.

Although there is a provision to increase workers’ salary every two years, the salary this time was increased nearly after three years and there was also a dispute between employers and trade unions over the issue.  On March 24, employers had signed an 11-point agreement on workers’ pay hike with three major trade unions—General Federation of Nepalese Trade Unions (GEFONT), All Nepal Trade Union Federation and Nepal Trade Union Congress Independent (NTUCI). However, the ministry on April 15 agreed to increase the monthly salary by Rs 1,600 instead of Rs 1500 agreed by employers on March 24. The fresh provision is based on the agreement reached with seven minor trade unions.

Pradip Jung Pandey, vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said the publication of the notice in the Nepal Gazette will force employers to abide by the provision. However, the new provision has undermined the 11- point agreement. “The provision brought into effect by neglecting the 11-point historic pact has set a negative tradition,” said Pandey.

The major three trade unions had signed the 11-point deal with the FNCCI and Confederation of Nepalese Industries (CNI) to increase workers salary by Rs 1,500 and daily wage by Rs 36. The agreement had also decided to mark the next four years as the period of industrial peace by allowing industries to run without any strike, contribute 11 percent and 20 percent in Social Security Fund by workers and employers, respectively, besides demanding 20 percent contribution from the government to the fund.

“We held discussions with employers and trade unions to incorporate all their demands before finalising this salary structure,” said Karna. He added that the ministry would also continue incorporating genuine demands of employers through amendments to labour laws.

Earlier     Now

Basic Salary                      Rs 3,050    Rs 3,550

Dearness Allowance       Rs 1,550    Rs 2,650

Daily Wage                        Rs 190        Rs 231

Published on: 24 May 2011 | The Kathmandu Post