Progress without labour is not possible: PM Oli

KATHMANDU: Prime Minister KP Sharma Oli said progress without labour and prosperity without respect for labourers is not possible, as he welcomed the rise in workers’ minimum wages.

The government has increased the minimum monthly wage for workers to Rs 19,550, up from Rs 17,300, effective from the first day of the fiscal year 2025/26. The new rate came into force on Thursday.

The revised wage was agreed at a tripartite meeting on Thursday at the Ministry of Labour, Employment and Social Security. Representatives of government, employers and labour unions participated in the talks.

“Previously, we took steps to secure the future of labourers by implementing a contribution-based social security scheme. So far, 2.1 million workers have been enrolled,” the prime minister wrote on his Facebook page.

Under the agreement, the monthly basic wage is fixed at Rs 12,170 and the dearness allowance at Rs 7,380. The review was conducted under Section 107 of the Labour Act, 2074 BS, which requires a review of minimum wages every two years.

Business groups have welcomed the decision as a necessary step to maintain sustainable labour relations, noting that the outcome—achieved through transparent discussions and flexibility from all parties—is acceptable to everyone involved.

Trade union representatives hailed the agreement as a victory for workers, pointing out that it is the first time a minimum wage has been set with direct input from labourers.