Widespread Non-Compliance with Minimum Wage Laws in Nepal’s Industrial Sector

A recent Labour Audit Report for the year 2080 BS, released by the General Federation of Nepalese Trade Unions (GEFONT), reveals that over one-fifth of industrial enterprises in Nepal fail to pay their workers the minimum wage. The audit shows an alarming increase from 15.3% in the previous year to 21.7% in 2080 BS.

During a press conference, GEFONT highlighted these findings, stressing the critical situation of labor exploitation in Nepal. Despite the government’s mandate of a Rs 17,300 monthly minimum wage, compliance remains woefully inadequate, particularly concerning outsourced labor. According to the report, a staggering 72.6% of companies employing workers through labor outsourcing companies also failed to provide minimum wage and overtime benefits.

The report comes just ahead of International Labour Day and includes a 25-point declaration aimed at enhancing workers’ rights and enforcement of labor laws. Key demands include mandatory orientation sessions on the social security fund for laborers and stricter implementation of the minimum wage provisions.

Although there has been a slight improvement in reducing child labor within industries—from 0.75% in 2079 BS to 0.6% in 2080 BS—the overarching issues of labor law compliance persist. Janmadev Jaisi, Chairperson of the Working Journalist Association, pointed out that the ongoing economic challenges and political instability exacerbate the hardships faced by daily wage workers.