Section 21

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Minimum wage

This section provides that the Government of Nepal may fix the minimum wage and allowances of workers, on the recommendation of the Minimum Remuneration Fixation Committee. The adoption of such rates will be notified and  published in the Nepal Gazette. Under this provision, any contract or agreement made in violation of the minimum wage and allowances is void.

Notes

As per new Nepal Gazette, the monthly minimum wage on 2016 was of Rs 9700 and the daily minimum wage is Rs 395.

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Section 21. Minimum Remuneration Fixation Committee:

(1) Government of Nepal may fix the minimum remuneration, dearness allowances and facilities of workers or employees or Enterprises on the recommendation of the Minimum Remuneration Fixation Committee and the notification on rates so fixed shall be published in the Nepal Gazette.

(2) Government of Nepal shall, in order to fix the minimum remuneration, dearness allowances and facilities, constitute a Minimum Remuneration Fixation Committee consisting of the equal number of representatives of workers or employees, Managers and Government of Nepal.

(3) While making recommendation in regard to dearness allowances and facilities of workers or employees, the Minimum Remuneration Fixation Committee constituted under Sub-section (2) may do so on the basis of geographical areas.

(4) The rates of minimum remuneration, dearness allowances and facilities fixed pursuant to Sub-section (1) shall be effective only from the date of publication of a notification to that effect in the Nepal Gazette.

(5) In cases where the Minimum Remuneration Fixation Committee could not be constituted or even if it is constituted, it could not make recommendation, nothing contained in the foregoing Sub-sections shall be deemed to have barred fixing the minimum remuneration, dearness allowances and facilities of workers and employees of Enterprises by Government of Nepal.

(6) No agreement may be entered into between the manager and workers or employees in a way to make the minimum remuneration, dearness allowances and facilities lesser than those fixed pursuant to Sub-section (1).

(7) The other functions, duties and powers of the Minimum Remuneration fixation Committee shall be as prescribed.

Law / Nepal / Labour Act, 1992

This Act provides for the rights of labourers, including their rights to remuneration, maximum working hours, safety and clean facilities within the workplace.