The average wage in a country measures the financial well being of that country’s inhabitants. Naturally, the higher the average wage, the better it is for the people. It means, there is more money to spend and more cash to save. However, the average wages are adjusted to living expenses. The wage distribution is right-skewed; the majority of people earn less than the average wage. Nepal is a country consisting of big mountains…and even bigger needs!
When a question concerning salary arises, the Nepalese are reluctant to tell. Some get offended while some get suspicious. Most reply with an embarrassed and awkward grin. “Thikai cha” or “Teti chaina” are common answers.
Cost of living in Nepal (average, local)
100 rupees (NPR) = USD$1.15
45 minute bus ride = NPR 30
Taxi across capital = NPR 200-300
1 litre of fuel = NPR 130
Veg. meal NPR (dal bhat) = NPR 100- 150
Non-Vegetarian meal NPR= NPR 150-250
1 litre of clean water = NPR 15-25
Low income earnings in Nepal:
A housekeeper in Nepal gets paid 100 rupees per day. Sometimes nothing, if they are brought from a village and promised food and lodging. An average guest house cook/cleaner/worker gets paid 150 rupees per day. Food is usually included here too. A chief chef gets paid 200 rupees per day, plus food. Manual construction workers get paid NPR 400-600. It should be noted that at this level, contracts are rarely written. Terms and conditions are applied as per word of mouth. Some tourist industry staff pay unions to represent them should a grievance occur.The government states that the minimum wage in Nepal should be NPR 6,100 per month. (source: myrepublica.com)
Middle income earnings in Nepal
A restaurant waiter gets paid 250 rupees per day, plus 10% of the service charge added to meals, tips, and food. A taxi owner earns NPR 250 – 350 per day after car rental (700-800) plus fuel. Public primary school teacher gets paid NPR 5,000 – 10,000 per month depending on area. Rural teachers get paid less. A starting bank staff member earns NPR 10,000 per month. Secondary and tertiary teachers NPR 20,000 per month. A starting level government worker gets NPR 7,000. Note: There are often hidden extras here, including monthly bonuses, food and fuel allowances. (source: myrepublica.com)
Upper income salaries in Nepal
A parliament member earns NPR 50,000 per month. A bank manager can earn up to NPR 100,000 per month. A Senior telecommunications engineer can earn up tp NPR 100,000+ depending on the organization s/he works for.
According to ekantipur.com, the chief executive officers of banks and financial institutions pocket Nrs. 585,000 to Nrs 25.24 million a year. Among the 27 commercial banks in operation as of the last fiscal year, Standard Chartered Bank Nepal’s CEO Sujit Mundul earns the most while the management chief of Nepal Bank Limited who was appointed by the central bank has the smallest salary.
It means that 27 CEOs have salaries ranging of Nrs. 45,000 to Nrs. 19,42,000 a month. Their monthly average salary stands at Nrs. 600,000 a month. These banks spent a total of Rs 210.55 million on their CEO’s salary in fiscal 2012-13. This amount does not include performance based pay and other perquisites such as expenses for vehicles and newspapers.
Among fully Nepali-owned banks, Radhes Pant, CEO of Kumari Bank, has the highest fixed salary. He gets Rs 1.04 million per month. Although Standard Chartered Bank has the highest salary for CEOs, it is exempt from the central bank’s recently introduced guidelines as the chief is serving here under a technical service agreement (TSA) made with its parent bank.
Government salaries in Nepal
According to the ministry’s data, President Ram Baran Yadav receives the highest salary, Nrs. 109,410, per month followed by Vice President Pramananda Jha, Nrs. 78,560. The office assistants or peons get the lowest salary, Nrs. 12,120 per month while the NA ‘Boys’ receive Nrs. 8,370.
Beneficiaries Salary (Nrs.)
President 109,410
Vice President 78,560
Prime Minister 56,200
Chief Justice 53,580
Speaker of the House 48,950
Deputy prime minister 47,410
Supreme Court justice 44,330
State Minister 42,010
Deputy Speaker 44,330
Head of Constitutional body 42,010
Nepalese Salary Comparison By Job Category (Average Monthly Salary According to salaryexplorer.com)
Job Category Average Salary
Food /Hospitality / Tourism / Catering 8,000 NPR
Construction / Building / Installation 12,000 NPR
Banking 18,333 NPR
Legal 19,424 NPR
Human Resources 20,000 NPR
Administration / Reception / Secretarial 10,267 NPR
Customer Service and Call Center 15,000 NPR
Sales Retail and Wholesale 22,656 NPR
Engineering 30,000 NPR
Marketing 25,000 NPR
Electrical and Electronics Trades 30,800 NPR
Information Technology 35,933 NPR
Accounting and Finance 36,688 NPR
Executive and Management 40,050 NPR
Architect 45,000 NPR
The minimum wage in Nepal as agreed by the employers and trade unionists is the highest in South Asia. Though Nepal’s minimum wage was the highest in South Asia until two years ago, it had dropped to third after Sri Lanka and the state of Uttar Pradesh in India raised theirs above Nepal’s.
Entrepreneurs believe that the problem of scarcity of workers in Nepal will decrease after the salary hike. “Our minimum wage has become the highest in South Asia and we hope that it will solve the problem of lack of workers to some extent,” Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pashupati Murarka stated. “We also hope that flight of workforce will be stopped as we have also significantly raised the daily wage along with the minimum monthly salary,” he added. The Nepali wage rate will be the highest in South Asia if the agreement to provide at least Rs 8,000 a month to workers at the industrial enterprises is implemented. It will be implemented once the government publishes it in the Nepal Gazette.
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