Wednesday, January 9, 2013

Govt mulls sector-wise minimum wage rates

KATHMANDU, JAN 08 -

With the time to review workers’ basic salary inching closer, the government is mulling sector-wise minimum wage rate.

The Ministry of Labour and Employment (MoLE) is planning to hold discussions with employers’ organisations and trade unions to this effect. As of now, minimum salary scale is same across all sectors.

As per the labour laws, workers’ minimum salary is reviewed every two years. The pay scale was last revised in March 2011 and was hiked to Rs 6,200 per month.

“This time, we are planning to set different pay scales for different sectors,” said Som Lal Subedi, secretary at the Labour Ministry. “As some sectors are providing more than the government -fixed salary, we are exploring possibilities for setting minimum wage rate based on what workers are getting in a particular sector and the sector’s performance.”

However, employers said implementing different minimum wage rates ‘is not an easy task’ as it requires extensive study and flexibility from both worker unions and employers. Employers’ organisations said a flat rate pay increase is the best way to avoid any possible dispute between employees and employers.

The private sector and trade unions affiliated to different political parties have started pressuring the government to start work on salary revision in time.

Pashupati Murarka, vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said they have requested the Labour Ministry to call a meeting of the Central Labour Advisory Committee (CLAC) to discuss the salary issue. “We are ready to sit for talks and increase the minimum salary as per the situation of the private sector and consumer price index,” he added. The CLAC under the coordination of the Labour Minister has been authorised to fix minimum salary of workers’. The CLAC has representations from employers’ organisations and worker unions.

According to the All Nepal Trade Union Federation (ANTUF), it has formally requested the FNCCI and the Labour Ministry to hold a tri-party discussion before workers are forced to launch protests. “It will be better if we reach an agreement by mid-February. Both the Labour Ministry and the FNCCI are positive to hold consultations on the issue soon,” said Salik Ram Jammarkattel, president of ANTUF. He added based on the inflation rate, the government must increase the minimum salary to Rs 10,000 per month.

Another trade union, General Federation of Nepalese Trade Unions (GEFONT) has also showed urgency for a new salary structure. “We are working with the FNCCI to sign an agreement for the Industrial Relation Forum. And immediately after the signing of that agreement, we will concentrate on the salary issue,” said Bishnu Rimal, president of GEFONT.