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Minimum Wages in Nepal 2082/83 (2026)
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Nepal's statutory minimum wage was revised on 1 Shrawan 2082 BS (17 July 2025). The current monthly minimum is NPR 19,550 — broken into a basic salary of NPR 12,170 and a dearness allowance of NPR 7,380 — with a daily floor of NPR 754 and an hourly rate of NPR 101 for regular workers (NPR 107 for part-time). Older guides citing NPR 17,300 are out of date and should not be relied on for 2026 payroll.

This is the 2026 (2082/83 BS) guide to minimum wages in Nepal — the current figures, the legal basis under the Labour Act 2074, the tripartite Minimum Wage Fixation Committee, sectoral variations such as tea estate, and the penalty for paying below the floor. For the broader employment framework see our labour law in Nepal, salary law and SSF guides.

Quick answer — Minimum wage in Nepal (2026):

  • Monthly: NPR 19,550 (basic 12,170 + dearness 7,380), effective 1 Shrawan 2082 (17 July 2025).
  • Daily: NPR 754. Hourly: NPR 101 regular; NPR 107 part-time.
  • Legal basis: Sections 106 and 107 of the Labour Act 2074, set by the tripartite Minimum Wage Fixation Committee and notified by MoLESS through the Nepal Gazette.
  • Tea estate: a separate sectoral minimum (broadly NPR 13,893 a month under its own regulations).
  • Penalty: paying below the minimum exposes the employer to a per-worker fine and recovery of the underpayment with interest under the Labour Act 2074.

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Our corporate team sees the same minimum-wage problem each cycle: a payroll set up at the last revision that quietly slipped below the new floor when the rate was raised. The fix is procedural — update the payroll the day the gazette comes out, and let the basic-plus-dearness structure flow through to SSF, festival expense and overtime. Anything else creates back-pay liability that compounds month over month.

What is the minimum wage in Nepal in 2026?

The current statutory monthly minimum wage in Nepal is NPR 19,550 — a basic salary of NPR 12,170 plus a dearness allowance of NPR 7,380 — effective from 1 Shrawan 2082 BS (17 July 2025). The daily floor is NPR 754 and the hourly rate is NPR 101 for regular workers and NPR 107 for part-time workers. The figure was raised from the previous NPR 17,300, so payroll set on the old figure is now below the statutory floor.

Who sets the minimum wage in Nepal?

The Ministry of Labour, Employment & Social Security (MoLESS) notifies the minimum wage on the recommendation of the tripartite Minimum Wage Fixation Committee under Sections 106 and 107 of the Labour Act 2074. The Committee brings together government, employer and worker representatives, with revisions made periodically (broadly every two years). The notification is published in the Nepal Gazette and takes effect from the date stated.

What does the minimum wage cover?

The Nepal minimum wage covers private-sector workers under the Labour Act 2074 — most regular, work-based, time-based and part-time workers, with sectoral variations where a separate notification applies. The figure is structured into basic plus dearness allowance because basic salary is the reference for SSF contributions, festival expense (one month basic per year), overtime premium and severance, so the basic-vs-dearness split matters for downstream payroll, not just for the headline floor.

How is the daily and hourly minimum wage calculated?

The daily minimum is NPR 754 (broadly the monthly minimum divided by working days, with a 26-working-day month convention), and the hourly rate is NPR 101 for regular workers, computed from the daily figure. Part-time workers (up to 35 hours a week) are entitled to an hourly rate of NPR 107, slightly higher than regular hourly to reflect the part-time structure. Overtime is paid at the premium rate set by the Labour Act 2074 on top of these floors.

Are there sectoral minimum wages in Nepal?

Yes. The general minimum applies to private-sector workers under the Labour Act 2074, but the tea estate sector operates under its own regulations with a distinct minimum (broadly NPR 13,893 a month at the most recent fixation). Some other sectors and public-sector pay scales sit outside the general minimum and are notified separately. Confirm whether a sectoral notification applies to a specific industry by checking with the relevant department or MoLESS.

What is the penalty for paying below minimum wage?

Paying below the statutory minimum wage is a breach of the Labour Act 2074, exposing the employer to a per-worker fine imposed by the Labour Office, recovery of the underpayment with interest from the date of underpayment, and increased penalties for repeat offences. Workers have time to bring a claim under the Act, and the matter can be appealed through the Department of Labour and ultimately to the Labour Court. Stacked over months, the back-pay liability can be material.

When should you involve a lawyer?

When a minimum-wage revision changes the basic-plus-dearness structure and the employer has to re-run payroll, SSF and festival expense; when a sectoral notification (tea estate, transport, agriculture) is unclear; when a worker raises a below-minimum complaint; and when an inspection or Labour Court matter is on the table. A lawyer or labour adviser confirms the current figure, runs the back-pay computation if needed, and represents the employer or worker. To review your payroll against the current minimum, speak with our lawyers today.

Last reviewed: May 2026

Frequently Asked Questions

NPR 19,550 per month (basic NPR 12,170 + dearness NPR 7,380), effective 1 Shrawan 2082 (17 July 2025). Daily NPR 754 and hourly NPR 101 regular (NPR 107 part-time).

MoLESS notifies it on the tripartite Minimum Wage Fixation Committee's recommendation under Sections 106-107 of the Labour Act 2074, published in the Nepal Gazette.

A per-worker fine by the Labour Office plus recovery of the underpayment with interest from the date of underpayment under the Labour Act 2074, with higher penalties for repeat offences.

The minimum wage was revised effective 1 Shrawan 2082 BS (17 July 2025), raising the monthly figure from NPR 17,300 to NPR 19,550 — an increase of around 13%. The revision came on the recommendation of the tripartite Minimum Wage Fixation Committee. Revisions are made periodically, broadly every two years, so the next revision is anticipated in around two years' time, although the precise timing depends on the Committee and the gazette.

The NPR 19,550 monthly minimum is structured as a basic salary of NPR 12,170 plus a dearness allowance of NPR 7,380. The basic-vs-dearness split matters because basic salary is the reference for SSF contributions (31% combined), festival expense (one month basic per year), overtime premium and severance. So a payroll set without the right basic-dearness split can comply with the headline minimum and still underpay the downstream entitlements.

The daily minimum is NPR 754, calculated broadly on a 26-working-day month from the NPR 19,550 monthly minimum. The hourly rate is NPR 101 for regular workers and NPR 107 for part-time workers (up to 35 hours a week), with part-time slightly higher to reflect the part-time structure. Overtime is paid at the premium rate set under the Labour Act 2074, on top of the regular floor.

Yes. The tea estate sector operates under its own regulations with a distinct minimum wage (broadly NPR 13,893 a month at the most recent fixation), different from the general private-sector minimum. The tea sector has its own labour framework reflecting the historical structure of the industry, so a tea-estate employer should follow the sectoral notification rather than the general figure. Confirm the current tea-estate minimum with MoLESS or the relevant department.

Yes. Part-time workers (up to 35 hours a week under the Labour Act 2074) are entitled to an hourly minimum of NPR 107 — slightly higher than the regular hourly rate of NPR 101 — reflecting the part-time structure. The total received by a part-time worker depends on the actual hours worked; the hourly floor cannot be reduced below the statutory rate. Pro-rata benefits and SSF treatment apply alongside the hourly floor.

Yes. A foreign worker employed in Nepal under a labour permit and a non-tourist (working) visa is covered by the Labour Act 2074 alongside any contractual terms agreed for the role. Foreign workers typically earn more than the minimum, but the statutory floor applies regardless. Foreign-worker pay also engages tax (TDS), SSF where applicable, and immigration compliance, so the wage figure is one part of a broader compliance package.

The SSF contribution is calculated on basic salary — 11% from the employee and 20% from the employer, total 31% — so a payroll set on the new basic of NPR 12,170 increases the SSF contribution proportionally relative to the older basic. Employers who do not update both the basic and the SSF deposit when the gazette changes the floor effectively under-contribute to SSF, which is detected at the annual labour audit or an SSF reconciliation.

Yes. The festival expense (one month's basic remuneration each year) is calculated on the basic component, so a higher minimum basic raises the festival allowance. The Bonus Act 2030 bonus computation uses different inputs, but eligibility and ceilings can be expressed relative to the minimum wage in some categories. So when the minimum wage moves, the festival expense moves with it for workers paid at or near the floor, and the payroll needs to reflect both.

A worker paid below the statutory minimum can raise the issue internally with the employer first, and then file a complaint with the local Labour and Employment Office, which can investigate and order recovery of the underpayment with interest plus impose a per-worker fine on the employer. Unresolved disputes proceed to the Labour Court. A worker should keep payslip, contract and attendance evidence to support the claim, and act within the statutory time window.

The minimum wage is revised periodically on the recommendation of the tripartite Minimum Wage Fixation Committee, broadly every two years, although the precise cycle depends on the Committee's tripartite agreement and the gazette. Recent revisions were in August 2023 and July 2025, with the next anticipated in around two years. Employers should treat each gazette notification as a same-day payroll update.

The minimum wage sets the regular floor; overtime is paid at the premium rate set by the Labour Act 2074 on top of the regular hourly rate, with a cap on overtime hours (broadly four hours a day and 24 hours a week). So a worker doing overtime earns above the minimum hourly rate for those extra hours. Compliant payroll therefore distinguishes regular hours at the minimum floor and overtime hours at the premium rate.

The NPR 19,550 monthly minimum is a gross figure — the amount payable to the worker before statutory deductions such as SSF (employee share 11% of basic) and income-tax withholding under Income Tax Act 2058. Net take-home will be lower than the headline minimum once these deductions are applied, but the gross floor itself is fixed at NPR 19,550. Other contractual deductions cannot reduce the worker's net below what the Act allows.

Casual workers — those doing work of up to seven days a month under the Labour Act 2074 — are paid on a daily basis at the daily minimum (NPR 754), with payment due on completion of the work. The casual category does not require a written contract and does not carry the full benefits regime of a regular worker, but the daily minimum-wage floor applies to the work done. Frequent or extended use of the casual category beyond the cap can be re-characterised by the Labour Office.

The Minimum Wage Fixation Committee makes its recommendation and the Ministry of Labour notifies the minimum wage through the Nepal Gazette, with the date the new rate takes effect stated in the notification. The notification is the legal basis for the new figure — it is not effective merely because a press release was issued. Employers should align their payroll to the gazette's effective date, which for the current rate is 1 Shrawan 2082 (17 July 2025).

Payroll records, employment contracts (showing wage components), attendance and overtime records, festival expense and bonus computations, and SSF contribution records, retained for the period required by the Labour Act 2074 and Income Tax Act 2058. These records support routine inspections, the annual labour audit, and any complaint. Keeping the records clean is the single best protection if a minimum-wage claim is later raised by a worker or by the Labour Office.

No. The Labour Act 2074 treats statutory minimums as floors, and an employment contract that offers less is void to that extent — the worker is entitled to the statutory minimum regardless of what the contract says. So an employer cannot rely on a signed contract to justify below-minimum pay, and a worker who has signed such a contract is not estopped from claiming the statutory floor. This is fundamental to the Act's protective design.

When a revision changes the basic-plus-dearness structure and the employer has to re-run payroll, SSF and festival expense; when a sectoral notification (tea estate, transport, agriculture) is unclear; when a worker raises a below-minimum complaint; and when an inspection or Labour Court matter is on the table. A lawyer or labour adviser confirms the current figure, runs the back-pay computation if needed, and represents the employer or worker through the process.

Disclaimer:
This article is intended solely for informational purposes and should not be interpreted as legal advice, advertisement, solicitation, or personal communication from the firm or its members. Neither the firm nor its members assume any responsibility for actions taken based on the information contained herein.

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