Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

Minimum Wage Fixing Convention, 1970 (No. 131) - Nepal (Ratification: 1974)

The Committee notes the information contained in the Government’s report and attached documents. It also notes the ongoing efforts for labour law reform through the social dialogue process, with the assistance of the International Labour Office.

Article 1(1) of the Convention. System of minimum wages. The Committee notes that the minimum wage rates have last been adjusted in 2006 and are now set at NPR2,200 (approximately US$34) per month, or NPR125 (approximately US$1.9) per day, for the organized sector with the exception of the tea plantation sector, and NPR2,660 (approximately US$41) per month, or NPR95 (approximately US$1.4) per day, for the workers employed in tea plantation estates. The Committee would be grateful if the Government would indicate whether the Minimum Remuneration Determination Committee has been fully consulted in the revision process and, if so, which were the elements and criteria it used for its recommendations (e.g. official surveys on national economic conditions, statistical data on the evolution of the consumer price index, unemployment rate, productivity, etc.).

Article 2(1). Lower minimum wage rates based on worker’s age. The Committee notes the Government’s statement that while the minimum wage legislation continues to provide for different rates for young persons between 14 and 16 years of age, the principle of equal remuneration for work of equal value is not affected, as the working hours of the young persons concerned are proportionally limited (no more than six hours per day and 36 hours per week) compared to the working hours of adults, in accordance with section 3 of the Labour Rules 1993. Considering the particular risk of abuse this age group of workers faces, the Committee would appreciate if the Government would supply information on the approximate number of workers remunerated at lower rates on account of their age, labour inspection results showing the number of wage-related infringements committed against young workers, as well as any specific protective measures the Government intends to take in their regard.

Article 4(2) and (3). Full consultation and direct participation of employers’ and workers’ representatives. The Committee notes the Government’s indication that in the case of agricultural workers, district development committees can determine minimum wage rates at the district level, provided that these rates are not lower than the national minimum wage rates. Noting that section 176 of the Local Self-Governance Act 2055 (1999) that sets out the membership of District Development Committees does not provide for the equitable representation of employers’ and workers’ interests in the minimum wage fixing function of these bodies, the Committee requests the Government to provide additional explanations in this respect.

Article 5 and Part V of the report form. The Committee notes the Government’s explanations concerning the role of the labour offices, the district administration offices and the Labour Court in ensuring compliance with the minimum wage legislation. It also notes the Government’s reference to difficulties of enforcement due to limited institutional infrastructure and financial resources but also the fact that the majority of workers are employed in the informal sector. The Committee would be grateful if the Government would continue to provide up to date information on the practical application of the Convention, both in terms of coverage and enforcement of the system of minimum wages, as well as any alternative strategies with a view to ensuring decent wage levels for workers in the informal economy.