Minimum Wage न्यूनतम पारिश्रमिक
The minimum wage is the lowest remuneration an employer in Nepal may lawfully pay. The rate in force is NPR 19,550 a month, made up of NPR 12,170 basic remuneration plus NPR 7,380 dearness allowance, or NPR 754 a day and NPR 101 an hour. It was fixed by the Government of Nepal under section 106 of the Labour Act 2074, published in the Nepal Gazette on 2082/04/05 BS and effective from Shrawan 1, 2082.
Also called: minimum remuneration Nepal, minimum salary Nepal, nyunatam parishramik
Key facts
- Monthly
- NPR 19,550NPR 12,170 basic + NPR 7,380 dearness allowance.
- Daily
- NPR 754The monthly rate over 26 working days.
- Hourly
- NPR 101The daily rate over a 7.5-hour working day.
- Fixed under
- Labour Act 2074, s.106Gazette notice 2082/04/05 BS, effective Shrawan 1, 2082.
- Applies to
- All employeesIncluding probationers and part-time, pro-rated.
The current rate, and what it is made of
An employer in Nepal may not pay less than NPR 19,550 a month for full-time work. That figure is published as two components: NPR 12,170 of basic remuneration and NPR 7,380 of dearness allowance. The daily equivalent is NPR 754 and the hourly equivalent is NPR 101.
The split is not cosmetic, and it is the part most payroll setups get wrong. PF, SSF and gratuity are all assessed on the basic component, and the overtime rate is derived from it. A company that treats the whole minimum wage as basic over-contributes on every statutory line; one that sets basic too low under-contributes and under-pays overtime.
How the daily and hourly rates are derived
- A month is treated as 26 working days: 30 days less the four weekly holidays. The monthly rate divided by 26 gives the daily rate.
- A working day is treated as 7.5 hours: eight hours less the half-hour rest break due after five continuous hours. The daily rate divided by 7.5 gives the hourly rate.
- Overtime is paid at one and a half times the hourly rate, calculated on basic remuneration rather than on the full package.
How the rate is set, and when it changes
The Minimum Remuneration Fixation Committee, which brings together government, employer and worker representatives, recommends the rate. The Government of Nepal then fixes it under section 106 of the Labour Act 2074 and publishes it in the Nepal Gazette, and it takes effect from the date the notice states, usually the first of Shrawan.
A revision is due at least every two years, so the figures above stay current until a new notice supersedes them. They were last checked against the Department of Labour's notice list on 2026-08-06. Anyone configuring payroll for the first time should confirm against the notice in force rather than any summary page, this one included.
Where it bites in practice
- A revision changes the contribution base for every employee sitting at or near the minimum, not only their gross pay.
- Part-time and casual employees are covered on a pro-rated basis rather than being outside the rule.
- Probation is not an exemption. The minimum applies from the first day of employment.
- Statutory service facilities sit on top of the wage: the employer's PF and SSF contributions, gratuity, leave and the festival expense are all additional cost, not part of the minimum.
Minimum Wage, answered
NPR 19,550 a month for full-time work, made up of NPR 12,170 basic remuneration and NPR 7,380 dearness allowance. The daily rate is NPR 754 and the hourly rate is NPR 101. The rate was fixed under section 106 of the Labour Act 2074 by a notice published in the Nepal Gazette on 2082/04/05 BS, effective from Shrawan 1, 2082.
The minimum applies to the total of the two published components, NPR 12,170 basic plus NPR 7,380 dearness allowance. Statutory contributions are a different question: PF, SSF and gratuity are assessed only on the basic component, and so is the overtime rate.
NPR 754 a day, and NPR 101 an hour. The notice derives the daily rate by dividing the monthly rate over 26 working days, and the hourly rate by dividing the daily rate over a 7.5-hour working day.
The Government of Nepal fixes it under section 106 of the Labour Act 2074, acting on the recommendation of the Minimum Remuneration Fixation Committee, and publishes it in the Nepal Gazette.
At least every two years. Because it changes by notice rather than by amendment to the Act, payroll should confirm the figure against the notice in force at the start of a fiscal year.
Yes. Probation does not create an exemption. Part-time and casual employees are also covered, on a pro-rated basis.
- Labour Act 2074 section 106, and the minimum remuneration rate schedule published in the Nepal Gazette on 2082/04/05 BS, effective Shrawan 1, 2082. Read from the Department of Labour and Occupational Safety notice at dol.gov.np/site/notice/112.
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.
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