The Ministry of Labour, Employment, and Social Security has set a new minimum wage effective from mid July. The increase follows the Minimum Wage Determination Committee’s recommendation to the government. As per the recommendation, the minimum monthly wage for workers has now been set at Rs. 19,550 (about $142.72). Until July 16, it was Rs. 17,300 (about $126.29).
The Ministry of Labour will officially publish the new rate in the government gazette, based on the committee’s recommendation, which includes representation from the government, employers, and worker organisations. The new wage will become legally enforceable after that.
The Labour Act mandates that the minimum wage must be reviewed every two years. The new wage has been determined based on indicators such as food and commodity price inflation and the overall economic condition.
Under the new structure:
The basic salary is set at Rs. 12,170 (about $88.84)
The dearness allowance is Rs. 7,380 (about $53.88)
Total monthly wage: Rs. 19,550 (about $142.72)
Daily wage: Rs. 754 (about $5.51)
Hourly wage: Rs. 101 (about $0.74)
For part-time workers: Rs. 107 per hour (about $0.78)
In addition to the wage, workers are entitled to benefits mandated by the Social Security Act, such as labour contracts, appointment letters, provident fund, and gratuity. Local governments must also set minimum wages no lower than this amount.
