Wages & Employment

Minimum Salary in Nepal: Minimum Wage, Working Hours and Overtime

NPR 19,550 a month, 8 hours a day, and overtime that isn't always what people assume. Here's what the current rules actually say.

13 min read Last updated August 2026 Merokalam Team

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If you just started a new job in Nepal, or you're trying to work out whether your pay is actually legal, you probably want one number before anything else. The minimum salary in Nepal is NPR 19,550 per month under the current general minimum remuneration, effective from Shrawan 1, 2082 BS, which falls in mid-July 2025.

That figure isn't a single lump sum. It's made up of a basic wage and an allowance, and it has a daily and hourly equivalent too, which matters if you're paid by the day, the hour, or you're working part-time. It comes from the Labour Act, 2074, and applies to most employees covered under the general minimum wage notice, though a few sectors follow separate rules.

The rest of this guide breaks the number down properly: what counts as basic pay, what counts as allowance, how many hours you can legally be asked to work, and exactly how overtime should be calculated, since this is the part most people get wrong.

Last updated: August 2026

Current Minimum Wage in Nepal

Wage TypeBasicAllowanceTotal
MonthlyNPR 12,170NPR 7,380NPR 19,550
DailyNPR 470NPR 284NPR 754
HourlyNPR 63NPR 38NPR 101
Part-time hourlyN/AN/ANPR 107

Figures apply to workers covered under the general minimum remuneration notice, effective Shrawan 1, 2082 BS (mid-July 2025). Some sectors, such as tea plantations, follow separate wage provisions, covered further down.

What Is the Minimum Salary in Nepal Right Now?

Direct answer: The minimum salary in Nepal is NPR 19,550 per month for workers covered under the general minimum remuneration notice, effective from Shrawan 1, 2082 BS. It applies to full-time employment under normal working hours and is made up of a basic wage plus an allowance, not one flat number set arbitrarily.

This rate came out of a revision by the Minimum Wage Fixation Committee under the Ministry of Labour, Employment and Social Security, following negotiations between government, employer and worker representatives, as required under Section 106 of the Labour Act, 2074. It replaced the previous minimum wage and took effect at the start of Shrawan 2082.

NPR 19,550 is a floor, not a target. Employers can pay more, and many jobs, especially skilled or experienced positions, pay well above this figure. What the law sets is the lowest amount an employer covered by the general notice can legally pay for standard working hours.

Minimum Salary in Nepal: Basic Salary and Allowance

Direct answer: The NPR 19,550 minimum salary is not a single figure. It's built from NPR 12,170 in basic remuneration plus NPR 7,380 in dearness allowance. NPR 12,170 + NPR 7,380 = NPR 19,550.

Why split it at all? Basic remuneration is the core wage figure, and it's the number used for calculations like overtime pay, and typically for things like provident fund and gratuity as well. The allowance, sometimes called dearness allowance, is added on top mainly to help offset the cost of living, and it's adjusted differently over time than the basic figure.

This distinction matters more than it might seem. A lot of confusion around Nepali salaries, especially overtime pay, comes from people applying the full NPR 19,550 (or its hourly equivalent, NPR 101) to calculations that should actually be based on the smaller basic figure alone. More on that in the overtime section below.

Minimum Daily and Hourly Wage in Nepal

Direct answer: The minimum daily wage in Nepal is NPR 754, and the minimum hourly wage is NPR 101. Part-time workers have a separate minimum hourly rate of NPR 107.

Not everyone is paid monthly. Daily wage workers, casual labourers and hourly staff need a different reference point, and the same government notice provides one, scaled down from the monthly figure rather than calculated separately.

Pay PeriodBasicAllowanceTotal Minimum
MonthlyNPR 12,170NPR 7,380NPR 19,550
DailyNPR 470NPR 284NPR 754
HourlyNPR 63NPR 38NPR 101
Part-time hourlyN/AN/ANPR 107

Notice that the part-time hourly rate, NPR 107, is higher than the general hourly rate of NPR 101. That's not a typo. Part-time work is priced purely by the hour with no monthly structure behind it, and the notice accounts for that with a slightly higher rate. This is covered in more detail further down.

How Many Hours Can You Work in Nepal?

Direct answer: The normal working day in Nepal is capped at 8 hours, with a weekly maximum of 48 hours, under Section 28 of the Labour Act, 2074. Workers are also entitled to a half-hour rest after five continuous hours of work.
RuleLimit
Maximum normal working hours per day8 hours
Maximum normal working hours per week48 hours
Rest break30 minutes after 5 continuous hours
Maximum overtime per dayUp to 4 additional hours
Maximum overtime per weekUp to 24 hours

Anything worked beyond the normal 8-hour, 48-hour structure is overtime, and it comes with its own rules, covered next.

Overtime Rules in Nepal

Direct answer: Overtime is any work beyond the normal 8 hours a day or 48 hours a week. Employers can require up to 4 extra hours a day and 24 extra hours a week, and overtime must be paid at 1.5 times the employee's basic remuneration, not the total wage.

Section 30 of the Labour Act sets the ceiling: an employer can ask someone to work overtime, but not more than 4 additional hours on any single day, and not more than 24 additional hours across a week. This exists specifically to prevent overtime from becoming a routine substitute for hiring more staff.

Section 31 covers the pay rate, and this is where the basic-versus-total distinction becomes important again. Overtime is paid at one and a half times the employee's basic remuneration for regular working hours, not one and a half times the full salary that includes allowance. For someone earning exactly the minimum wage, that means overtime is based on NPR 63 an hour, the basic component, not NPR 101, the combined total.

This is a common point of confusion, and worth repeating clearly: overtime should not simply be calculated as 1.5 × NPR 101. That would overstate the legal minimum overtime rate, because NPR 101 already includes the allowance, and the allowance isn't part of the overtime formula.

How to Calculate Overtime Pay in Nepal

Direct answer: Multiply your basic hourly remuneration by 1.5. For someone earning exactly the minimum basic hourly rate of NPR 63, that's NPR 63 × 1.5 = NPR 94.50 per overtime hour.

That NPR 94.50 figure is a simplified example based specifically on the minimum basic hourly rate. An employee earning a higher basic salary, which is common in many jobs, would have a correspondingly higher basic hourly figure, and their overtime rate would be higher too. The formula stays the same; only the basic number changes.

Basic Hourly RemunerationOvertime Rate (1.5×)
NPR 63 (current minimum)NPR 94.50
NPR 75NPR 112.50
NPR 100NPR 150.00
NPR 150NPR 225.00

Illustrative calculations using the 1.5× basic-remuneration rule. Your own basic hourly figure depends on your actual basic salary, not necessarily the legal minimum.

To find your own basic hourly rate if you're paid monthly, divide your basic monthly salary, not your total salary, by the standard hours in a month. If your employer hasn't clearly separated basic pay from allowances and other add-ons on your pay slip, that's worth asking about directly, since it's the number your overtime should be based on.

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Example: Employee Working 10 Hours a Day

Consider a restaurant employee whose normal shift is 8 hours a day, paid at the minimum wage. One evening, the restaurant is short-staffed and asks them to stay an extra 2 hours, working 10 hours total.

  • Hours 1–8: Normal working hours, paid at the standard rate that makes up their regular daily wage.
  • Hours 9–10: Overtime, since they've gone past the 8-hour normal limit. These 2 hours should be paid at 1.5 times their basic hourly remuneration.

If this employee's basic hourly remuneration is exactly the minimum, NPR 63, their overtime pay for those 2 extra hours would be NPR 63 × 1.5 × 2 = NPR 189, on top of their normal 8-hour pay for the day. The 2 extra hours also stay comfortably within the legal daily overtime limit of 4 hours, so there's no issue on that front either.

Can an Employer Pay Less Than NPR 19,550?

Direct answer: No, not for full-time employees covered under the general minimum remuneration notice. NPR 19,550 is the legal floor for standard working hours, and pay below that isn't compliant with the current notice.

Employment contracts are free to offer more than the minimum, better salary, extra benefits, additional leave, and many jobs do exactly that. What they generally shouldn't do is use a private agreement to pay less than the statutory minimum in situations where the minimum wage rules apply, since the minimum is a floor set by government notice, not a negotiable starting point.

That said, applicability can depend on the type of employment and sector, which is exactly why the tea garden and special-sector section further down matters, and why checking your specific situation is worth doing rather than assuming.

Does Minimum Salary Include Overtime?

Direct answer: No. The NPR 19,550 minimum salary is meant to cover normal working hours only, 8 hours a day and 48 hours a week. Overtime is a separate, additional payment on top of that, not something that should be absorbed into the base minimum figure.

An employer that pays exactly NPR 19,550 a month but expects an employee to regularly work beyond 48 hours a week without additional overtime pay isn't compensating fairly for those extra hours. The minimum wage and overtime pay are two separate obligations that exist alongside each other, not substitutes for one another.

Does the Minimum Wage Apply to Part-Time Employees?

Direct answer: Yes, but part-time workers have their own minimum hourly rate of NPR 107, rather than being measured against the monthly NPR 19,550 figure.

Part-time employment doesn't fit neatly into a monthly salary structure, since hours can vary week to week. The current notice addresses this directly with a standalone minimum hourly remuneration for part-time workers, set slightly above the general hourly rate to reflect that part-time pay is calculated purely on an hourly basis rather than building up to a guaranteed monthly total.

If you're working part-time, the relevant comparison for your pay isn't the NPR 19,550 monthly figure, it's the NPR 107 hourly rate multiplied by the hours you actually worked.

What About Tea Garden Workers and Other Special Sectors?

Not every sector follows the general minimum remuneration notice covered in this guide. Tea plantation workers, for example, have historically been covered under separate wage provisions specific to that industry, reflecting different work structures and negotiated agreements within the sector.

Other sectors may have their own arrangements too. If you work in agriculture, plantations, or another industry with sector-specific wage negotiations, don't assume the NPR 19,550 general figure automatically applies to you. Check the latest applicable government notice for your specific sector, or ask your employer or a relevant labour office directly.

What If Your Employer Pays Below Minimum Wage?

If you suspect your pay doesn't meet the legal minimum, a calm, methodical approach usually works better than an immediate confrontation. Here's a reasonable sequence:

Check your employment agreement to see what salary and terms were actually agreed to in writing
Keep salary slips and payment records so you have a clear, dated history of what you were actually paid
Record your working hours and overtime, even a simple personal log helps if a discrepancy needs to be worked out later
Speak with your employer or HR first, where that's a realistic option, since pay issues are sometimes genuine administrative errors
Contact your local Labour and Employment Office or the relevant authority under the Ministry of Labour, Employment and Social Security for current guidance if the issue isn't resolved

This isn't a substitute for individual legal advice, and every situation is a little different. But documenting things clearly and raising the issue calmly, first internally and then through the appropriate labour office if needed, is generally the most practical path forward.

The minimum wage is a floor for normal working hours, not a ceiling, and not a substitute for separate overtime pay.

Nepal Minimum Wage FAQs

What is the minimum salary in Nepal in 2026?
The current minimum monthly remuneration in Nepal is NPR 19,550, made up of NPR 12,170 basic remuneration and NPR 7,380 dearness allowance. This rate has been in effect since Shrawan 1, 2082 BS (mid-July 2025) and applies to workers covered under the general minimum wage notice.
What is the basic salary in Nepal?
Under the current minimum remuneration structure, the basic salary is NPR 12,170 per month. This is the core wage component used for calculating things like overtime, provident fund and gratuity, separate from the dearness allowance that sits on top of it.
What is the minimum daily wage in Nepal?
The minimum daily remuneration is NPR 754, consisting of NPR 470 basic remuneration and NPR 284 allowance. This is the daily equivalent of the NPR 19,550 monthly rate and applies to workers paid on a daily basis under the general minimum wage.
What is the minimum hourly wage in Nepal?
The minimum hourly remuneration is NPR 101, made up of NPR 63 basic remuneration and NPR 38 allowance. This hourly figure is what the basic-remuneration overtime calculation is built on.
What is the minimum wage for part-time workers?
The current notice sets a minimum hourly remuneration of NPR 107 specifically for part-time workers, slightly higher than the NPR 101 general hourly rate. This reflects that part-time work is calculated purely by the hour rather than against a full monthly structure.
How many hours is a normal working day in Nepal?
Under the Labour Act, 2074, the normal working day is capped at 8 hours, with a maximum of 48 hours a week. Workers are also entitled to a half-hour rest after five continuous hours of work.
How is overtime calculated in Nepal?
Overtime is paid at 1.5 times the employee's basic remuneration for regular working hours, not the total remuneration that includes allowance. At the minimum basic hourly rate of NPR 63, that works out to NPR 94.50 per overtime hour, though an employee earning a higher basic salary would have a proportionally higher overtime rate.
Can an employer include overtime in minimum salary?
No. The minimum salary of NPR 19,550 is meant to cover an employee's normal working hours, 8 hours a day and 48 hours a week. Overtime is a separate, additional payment for hours worked beyond that, not something that should be folded into the base minimum figure.
Is NPR 19,550 the salary after tax?
NPR 19,550 is the gross minimum remuneration set by the government notice, not a take-home or after-tax figure. Actual deductions depend on an employee's total income, applicable tax slabs and any contributions, so the amount that lands in a worker's account can differ from this gross figure.
Does minimum salary include SSF or other employment benefits?
The NPR 19,550 figure is the minimum remuneration itself, and Social Security Fund contributions and other statutory benefits are generally calculated on top of or alongside it rather than being carved out of it. Exact contribution rates and benefit structures can vary by employer and sector, so it's worth checking your specific pay slip or employment agreement rather than assuming a single universal breakdown.

Final Summary

The minimum salary in Nepal currently stands at NPR 19,550 a month, split between NPR 12,170 basic remuneration and NPR 7,380 allowance, effective from Shrawan 1, 2082 BS. Daily and hourly workers have their own equivalent minimums, NPR 754 a day and NPR 101 an hour, with part-time workers set slightly higher at NPR 107 an hour.

Normal working hours are capped at 8 hours a day and 48 hours a week. Anything beyond that is overtime, limited to 4 extra hours a day and 24 a week, and it must be paid at 1.5 times basic remuneration, not the full combined wage. Some sectors, like tea plantations, follow separate rules, so it's always worth checking the specific notice that applies to your job rather than assuming the general figures cover every situation.

Disclaimer: This article provides general information about Nepal's minimum wage and labour rules and is not individual legal advice. Rules can change, so readers should confirm important employment matters with the latest Government of Nepal notices or the relevant labour authority.

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