August 20: The Confederation of Nepalese Industries (CNI) has said that the provisions regarding the minimum wages of workers fixed by the government cannot be implemented. The federation issued a statement on Friday stating that the new wages cannot be implemented.

"CNI’s attention has been drawn to the government’s decision to raise the minimum wage of the workers by publishing a notice in the Nepal Gazette," the statement said,  adding, “Although the private sector wants to raise the salary, it is not in a position to do so due to the current problems in the economy.”

The confederation argued that the interest rate is high, the market demand is shrinking and the morale of the private sector is decreasing due to low production. The confederation further said that there has been a 70 percent decline in industrial production and industrialists are postponing investment plans.

The confederation has urged the government to improve the existing challenges to make the economy viable, to adopt a policy to increase the overall market demand and to reduce the cost of production and increase the morale of the private sector.

The government had increased the minimum wage of workers by issuing a notice in the Nepal Gazette on Thursday.

The Ministry of Labour Employment and Social Security said that the employers will have to implement the new wage structure effective from July 17, 2023.

With the new decision, the monthly wage of workers has been fixed at Rs 17,300.  The minimum basic salary of the workers has been fixed at Rs 10,820 and Rs 6,480 as dearness allowance per month.   

In case of part time workers, the government has fixed the minimum wage at Rs 95 per hour.

Likewise, the wage of tea estate workers has been fixed at Rs 13,893 per month.