Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

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

The Committee notes the observations made by the General Federation of Nepalese Trade Unions (GEFONT) concerning the application of the Convention. While acknowledging the consultative processes followed by the Government in determining the minimum wages for the private sector, tea estates and the agricultural sector, GEFONT considers that during the same period the Government has taken legislative action that directly violates the letter and the spirit of the Convention. More concretely, GEFONT refers to the Civil Service Act of 1993, as amended by its Second Amendment Ordinance of 2005, section 7(3) of which provides for the abolition of any permanent posts in the civil service falling vacant and their replacement by service contracts which often carry wages lower than the minimum pay rates. According to the workers’ organization, the Government, under the pretext that the minimum wage does not apply to public employees, resorts to labour-only contracting which permits it to offer remuneration at less than the minimum wage rate to workers recruited through manpower agencies. In addition, many workers in the civil service allegedly work without any holidays and social security coverage. GEFONT further states that it had suggested the establishment of a tripartite minimum wage committee when the first amendment to the Journalists Labour Act of 1995 was discussed, but the proposal was rejected. The Committee requests the Government to transmit any comments it may wish to make in reply to the observations of GEFONT. It would also appreciate receiving the Government’s reply on the points raised in the Committee’s previous direct request.