1. Decent Wage and accountability in Global Supply Chain
Ramesh Badal

2. Defining Decent Wage? GEFONT/JTUCC demand
The constitution should address the living wage as fundamental right of workers
Fundamental right of workers
Every Workers shall have the right to fair wage, facilities and protected under contributory social security: The constitution of Nepal, 2015
Labour Act 2017
Minimum wage to be fixed by Tripartite board
Decent wage
We termed as fair wage and achieve through the collective Bargaining
Social Security
Employer should contribute to the cost to the social security in addition to the minimum wage
Federalism and wage
Nepal recently change into unitary to federal structure. Minimum wage may be fixed by local and provincial government but cannot fix less than national Minimum wage
2000 Jan 13
First time minimum wage-rate was fixed to entire agriculture workers
2007
Construction sector's wage rate was defined separately through the Public Procurement Regulation
2008 Sep 18
Replaced existing four-categories of minimum wage by single wage- rate in these sectors
2011 May 23
Employer and union agreed to contribute 20% and 11 % of Basic wage to Social security
2013 June 10
Minimum wage increase 1800 per month
2016 Feb 01
Minimum wage increase 1700 per month after earthquake
2018 July 17
Minimum wage increased 39% and first time hourly wage fixed

3. History of Minimum Wage: A timeline
1965 May 31
Monthly Minimum Wage fixed first time in Nepal and applicable only one dozen factory
1972 November 12
Minimum wage extended to 13 district out of 75 district but do not apply to contract and peace rated workers
1979 April
First time minimum wage fixed for daily waged workers
1992 July 27
Separate minimum wage fixed for tea plantation workers
2000 January 13
First time minimum wage fixed to Agriculture workers
2018 July 16
Minimum Wage increased 39% as a part of +50 campaign and first time it is applicable to domestic workers and agriculture workers, hourly wage fixed,
Government notification to pay wage of workers from banking channel only within one year, all outsourcing company covered.
2000 Jan 13
First time minimum wage-rate was fixed to entire agriculture workers
2007
Construction sector's wage rate was defined separately through the Public Procurement Regulation
2008 Sep 18
Replaced existing four-categories of minimum wage by single wage- rate in these sectors
2011 May 23
Employer and union agreed to contribute 20% and 11 % of Basic wage to Social security
2013 June 10
Minimum wage increase 1800 per month
2016 Feb 01
Minimum wage increase 1700 per month after earthquake
2018 July 17
Minimum wage increased 39% and first time hourly wage fixed

4. Use of Consumption Basket

5. Wage increase ratio before recognition of Union
1965 to 1992
Year
Average wage NRS
National CPI
Real wage Index
1965
157
100
1966
102 98
1973
190
77.1
1978
296
222
85.1
1980
370
378
62.4
1983
440
507
55.2
1985
540
611
56.3
1987
663
769
54.9
1989
931
912
65.0
1992
1232
1320
59.5

6. Wage increase ratio after recognition of Union
1992 to 2018
Year
Average wage NRS
National CPI
Real wage Index
1992
1232
100
100.0
1995
1532
127
97.6
1997
1882
149
103.0
2000
2198
175
101.4
2003
2642
197
108.8
2006
3382
235
117.1
2008
4682
283
134.5
2011
6200
367
137.1
2013
8000
440
147.5
2016
9700
542
145.3
2018
13450
562
194.3

7. Expenses required per person on 2017
Item
Quantity
Price per unit(NRS)
Monthly required amount
Rice or white
10 Kg 70
700
Lintel
3 Kg 90
270
Vegetable
Every day (30 days ) 30
900
Cooking oil
1 Ltr.
130
Salt and spices 5
150
Tea and sugar
Every month 62
Snacks 25
750
Milk
1 Packet everyday 35
1050

8. Expenses required per person on 2017
Item
Quantity
Price per unit(NRS)
Monthly required amount
Gas
4Kg per months 92
368
water and electricity
Per month 75
Transportation
Per day 20
600
Brush, tooth pest/ shampoo
cloth
Two pear per year
800 67
shoe and sandal
500 42
Medicine
150
Other expenses
Total cost
5539
We demanded that 5539x4 =22156/- as minimum wage per four member family where only one wage earner in a house. However, has been fixed as minimum wage

9. Minimum Wage Before Democracy:
Average Real Wage in Nepal, (Manufacturing Sector)
(Base year 1965=100)
Note: * Including dearness allowances, average of four categories
Source: Calculated using national consumer price index (CPI)

10. After Recognition of Trade Union (Manufacturing Sector)
Minimum Wage:
After Recognition of Trade Union (Manufacturing Sector)
(Base year 1992=100)
Note: * Including dearness allowances, average of four categories
Source: Calculated using national consumer price index (CPI)

11. Regulating outsourcing to held principle employer responcible
labour Laws
4 September, 2017
New Labour Act 2017 come into force, which is a outcome of Union and employers agreement
22 December 2075
All outsourcing company need to registered, no one supply human resource to other business unless obtaining permission form the department of Labour
Responsibilities of Principle employer
No business contract with supplier violating any provision of Labour law even through the bidding process
Secure Minimum wage and Monitor payment of wage monthly basis, may ask bank statement as proof
Payment of Social security contribution, other benefits like leave, compliance of holiday etc, monitor labour audit report
Provide proper working condition and manage the issue of Occupational safety and health related matter
2000 Jan 13
First time minimum wage-rate was fixed to entire agriculture workers
2007
Construction sector's wage rate was defined separately through the Public Procurement Regulation
2008 Sep 18
Replaced existing four-categories of minimum wage by single wage- rate in these sectors
2011 May 23
Employer and union agreed to contribute 20% and 11 % of Basic wage to Social security
2013 June 10
Minimum wage increase 1800 per month
2016 Feb 01
Minimum wage increase 1700 per month after earthquake
2018 July 17
Minimum wage increased 39% and first time hourly wage fixed

12. Thank You!