Nepal's Labor Ministry Issues Stern Warning to Employers Over Minimum Wage Violations

Kathmandu. The Ministry of Labor, Employment and Social Security has issued a stern warning to employers and organizations that fail to provide the government-mandated minimum wage and legal benefits to workers and employees.

The Ministry released a press statement expressing serious concern over ongoing legal violations, particularly within hospitals, health institutions, and private and institutional schools.

This action follows an increase in complaints filed with the Ministry by healthcare workers and nursing staff working as 'interns,' private school teachers, staff, and other employees who reported not receiving their entitled minimum wages and benefits.

The Ministry reiterated the legal provisions under Section 18, Sub-section (3) of the Labor Act, 2074, clarifying that employers are mandatory required to provide benefits to individuals engaged as interns.

The Ministry clarified that according to the law, trainee workers must also receive at least the minimum wage, along with provisions for sick leave, gratuity, provident fund, insurance, and other social security benefits without compromise.

In a statement issued by the Ministry's Joint Secretary and spokesperson, all employers are strongly urged to fully comply with the minimum wage and social security arrangements as required by the Labor Act and prevailing laws.

Furthermore, the Ministry has warned that those who defy the law will face legal action. 'We inform all concerned establishments, organizations, and stakeholders that if anyone is found depriving workers of their minimum wage and other benefits, legal action will be taken under prevailing laws, and we appeal for voluntary compliance,' the statement said.

The Ministry issued this strict directive amid growing complaints regarding the trend of private schools and health institutions employing interns or trainees at low or no wages.