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Govt enforces new pay package

Ashok Thapa

The government has enforced new remuneration package along with social security package for workers. It has fixed minimum monthly salary of Rs 6,200 and daily wage of Rs 231 with effect from March 15.

According to a notice published in Nepal Gazette on Monday, employees will get minimum basic salary of Rs 3,550 and dearness allowance of Rs 2,650 per month.  The salary is applicable for all industrial workers, excluding those employed in tea estates.

The new pay package incorporates agreements signed among workers, government representatives and employer representatives at different times.

As per the notice, all business organizations that revised their pay package after April 14, 2010, must follow the new pay structure.

The notice also envisages formation of Social Security Fund where employers will have to contribute 20 percent of the total salary drawn by workers and the workers too are required to contribute 11 percent of their monthly salary.

Meanwhile, employers have expressed objection to the newly enforced pay package. “The new wage package and the way it has been enforced could be detrimental to good industrial relation in the country,” said said Pashupati Murarka, chairman of Employers´ Council of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). He added that FNCCI would come up with its formal reaction on the new pay package after holding discussion with representatives of three trade unions that signed the March 24 agreement with it.

Badri Bajagain, coordinator of All Nepal Trade Union Federation-Revolutionary, hailed the new pay package and said genuine demands of workers have finally been addressed.

However, Ramesh Badal, secretary of General Federation of Nepalese Trade Union accused the government of trying to jeopardize harmonious relationship between industrial workers and employers.

“We are still committed to our previous stand. We want the social security package to be implemented as per the March 24 pact,” he added.

Published on: 24 May 2011 | Republica

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