Pvt sector against govt decision to determine minimum salary

In a joint statement, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) have said that the government’s decision to determine the minimum wage of workers was inappropriate at the moment when the entire country is reeling under the impact of the second wave of the coronavirus.

The umbrella organisations of the private sector have said that the decision which was made public by the government on May 3 regarding the minimum wage of employees would be difficult to implement given the crisis that the country is going through now. The government has stated that employers have to pay workers a minimum wage of Rs 15,000 per month from the next fiscal year.

The private sector organisations have said that the partial and full prohibitory orders that have been imposed in 56 districts across the country had affected over 700,000 enterprises with small and medium scale industries being the worst hit. The statement adds that the prohibitory orders have made it difficult for such enterprises to even manage their daily expenses.

The private sector representatives have also mentioned that most small and medium scale businesses and those related to the tourism industry still have not been able to get over the financial shock of the previous lockdown. And in such a difficult moment when businesses related to the tourism sector have been paying wages to their employees through an understanding between the management and workers such a decision from the government would hamper the efforts of the private sector to give momentum to the economy, the statement adds.

The second wave of the coronavirus has swept across the country at present and more emphasis should be laid on saving jobs, the organisations have said. They have also appealed to the government not to interfere in the determination of the minimum wage of workers at a time when the country is going through a crisis. This could be done on mutual understanding between the employers and workers, the private sector bodies have said.