Employers want Financial Act to include automatic hike, based on CPI, every two years

Employers have suggested the government to include minimum salary and wage hike on the basis of inflation every two years automatically, in the Financial Act that can guarantee the rights of the employees too.

If the government publishes the automatic revision provision of minimum salary and wage every two years from the beginning of the new fiscal year, there will be little room for political parties and trade unions affiliated to them for political bickering and disturbing the business environment, they suggested, adding that the employers can also have predictability in their business and investment plan.

They — like what employees have been asking — are ready to increase the salary on the basis of Consumer Price Index (CPI) published by the central bank but still some trade unions are not happy.
The scientific model of the automatic revision could be discussed and brought in the Financial Act along with the budget, for a peaceful industrial environment, according to them.

"We have no objection to a scientific method for salary and wage hike based on inflation published by the central bank," according to a member of the Minimum Wages Fixation Committee that has been holding marathon rounds of talks to finalise the minimum salary and wage.

Earlier, the three key trade unions associated with Joint Trade Unions Coordination Centre — Nepal Trade Union Congress-Independent, All Nepal Trade Union Federation, and General Federation of Nepalese Trade Unions — had asked for an inflation-based salary hike, besides the minimum wage criteria for workers.

Employers have agreed to increase the minimum salary and wage by Rs 1,200 making it Rs 8,400 on the basis of around 10 per cent inflation — according to Nepal Rastra Bank (NRB) — every year in the last two years.

The minimum monthly salary of Rs 6,200 and daily wage of Rs 231 was fixed on March 24, 2011, by the tripartite Minimum Wages Fixation Committee.

However, some trade unions have been asking for Rs 12,500 — double the current salary of Rs 6,200 — and others have been asking for Rs 15,000 minimum salary, claiming that it is insufficient to survive in towns and its suburbs with the present salary and wage structure.

They have asked the government to fix a minimum salary that will be sufficient for a family to live in a town, apart from social security schemes including accidents, health care and maternity, and pension.