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Labour & Employment

Minimum Wage / Salary in Nepal, 2023 (2080)

December 20, 2023 Download PDF

Nepal’s minimum wage for 2080 BS was fixed by the Ministry of Labour, Employment and Social Security under Section 106 of the Labour Act, 2074 BS (2017 AD), at NPR 17,300 per month, effective from 1 Shrawan 2080 BS (17 July 2023 AD).

The figure applies to employees and labourers across all employment, with the single exception of tea estates, for which a separate rate is designated. It is a floor rather than a guideline: an employment contract cannot lawfully pay less, whatever the parties agree.

This note sets out the monthly, daily and hourly rates, how the basic remuneration and dearness allowance combine, and who falls outside the determination.

The Minimum Remuneration Rates

Each rate is made up of two components, a basic remuneration and a dearness allowance, which together give the total payable.

S.N. Minimum remuneration Basic remuneration (Rs.) Dearness allowance (Rs.) Total (Rs.)
1 Monthly 10,820 6,480 17,300
2 Daily 418 250 668
3 Per hour 56 33 89
4 Hourly minimum remuneration for part-time employees Not stated Not stated 95

How the Components Work

The basic remuneration is the core wage figure, and the dearness allowance is a cost-of-living component added on top. The two are stated separately because other entitlements are calculated by reference to them, so payroll should record each component rather than only the combined total.

On the monthly rate, the basic remuneration of NPR 10,820 and the dearness allowance of NPR 6,480 together make up the total of NPR 17,300. The daily and hourly rates are constructed the same way.

Part-time Employees

Part-time work carries its own hourly floor of NPR 95, set above the ordinary hourly rate of NPR 89. The determination states the part-time figure as a single total and does not break it into basic remuneration and dearness allowance.

Who Is Covered

The rates apply to all employment relationships within the scope of the Labour Act, 2074, other than tea estates, which have a separate designation of their own. Employers outside that sector should treat these figures as the minimum payable to every employee and labourer, including those engaged on part-time terms.

Read the Original Briefing

The full briefing, including the original formatting, is reproduced below and available to download.