Minimum Wageन्यूनतम पारिश्रमिक
The minimum wage is the lowest remuneration an employer in Nepal may lawfully pay, fixed by the Government of Nepal on the recommendation of the Minimum Remuneration Fixation Committee. It is published as a basic component plus a dearness allowance and is revised on a recurring cycle.
Also called: minimum remuneration Nepal, minimum salary Nepal, nyunatam parishramik
Key facts
- Fixed by
- Government of NepalOn the Committee's recommendation.
- Structure
- Basic + dearness allowancePublished as two components.
- Revision
- On a recurring cycleAt least every two years.
- Applies to
- All employeesIncluding probationers and part-time, pro-rated.
How the rate is set
The Minimum Remuneration Fixation Committee, which brings together government, employer and worker representatives, recommends the rate. The Government of Nepal then fixes and publishes it by notice, and the new figure takes effect from the date the notice states, usually the start of a fiscal year.
The published rate is split into a basic component and a dearness allowance. That split is not cosmetic. Statutory contributions such as PF, SSF and gratuity are assessed on the basic component, so a company that treats the whole minimum wage as basic will over-contribute, and one that sets basic too low will under-contribute.
Why this page does not quote a figure
The rate is revised by notice on a recurring cycle, and a number published here would be correct only until the next revision. Anyone configuring payroll should take the figure from the current notice rather than from a summary page, this one included.
What is stable, and worth knowing, is the structure: a monthly rate, with daily and hourly equivalents, split into basic and dearness allowance, applying to every employee including those on probation, with part-time pro-rated.
Where it bites in practice
- Overtime is calculated on basic remuneration, so the basic component of the minimum wage sets the floor for the overtime rate too.
- A revision changes the contribution base for every employee sitting at or near the minimum, not just their gross pay.
- Part-time and casual employees are covered, on a pro-rated basis, rather than being outside the rule.
Minimum Wage, answered
The Government of Nepal fixes it by notice, acting on the recommendation of the Minimum Remuneration Fixation Committee, which includes government, employer and worker representatives.
On a recurring cycle, at least every two years. Because it changes by notice rather than by statute, payroll should take the current figure from the notice in force rather than from a summary.
Yes. Probation does not create an exemption. Part-time and casual employees are also covered, on a pro-rated basis.
- Labour Act 2074 provisions on minimum remuneration, and the Government of Nepal minimum remuneration notices issued on the Committee's recommendation.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Related terms
- Basic Salaryआधारभूत तलबBasic salary is the fixed core of an employee's pay, before allowances, overtime and bonuses. In Nepal it is also the base every statutory contribution is assessed on, which makes it the most consequential number in a salary structure.
- Allowanceभत्ताAn allowance is a regular payment made on top of basic salary for a specific purpose, such as dearness, transport or communication. Allowances count as taxable earnings but are excluded from the base used for PF, SSF, gratuity and overtime.
- Overtimeअतिरिक्त समयOvertime is time worked beyond the standard eight-hour day or forty-eight-hour week. Under Nepal's Labour Act 2074 it is paid at one and a half times basic remuneration and is capped at four hours a day and twenty-four hours a week.
- Labour Act 2074श्रम ऐन २०७४The Labour Act 2074 is Nepal's principal employment statute, in force since 2074 BS (2017 AD) and applied together with the Labour Rules 2075. It sets employment types, working hours, overtime, leave entitlements, probation and notice, and the funded gratuity and social security model.
- Employment Typesरोजगारीका प्रकारNepal's Labour Act 2074 recognises five employment types: regular, work-based, time-bound, casual and part-time. The type decides how the contract can end, what entitlements apply, and what has to be in writing.
Stop looking this up. Let the system apply it.
NepalHRM applies Nepal's payroll, leave and attendance rules per employee, every run, so the policy in your handbook and the numbers on the payslip stay the same document.
- No minimum commitment
- Nepal IRD compliant
- Free onboarding
- Cancel anytime