GEFONT Report Exposes Alarming Rise in Minimum Wage Violations ➤

GEFONT Report Exposes Alarming Rise in Minimum Wage Violations

Labor Union Reveals 21.7% of Nepali Industries Defying Minimum Wage Laws, Calls for Strict Enforcement

In a concerning revelation, the General Federation of Nepalese Trade Unions (GEFONT) has exposed a significant rise in minimum wage violations across industrial enterprises in Nepal. According to GEFONT’s recent Labor Audit Report- 2080 BS, an alarming 21.7% of industries are failing to pay their laborers the government-mandated minimum wage, marking a six percent increase from previous years.

Unveiling the report during a press conference, GEFONT highlighted the stark realities facing laborers and daily wage workers in Nepal. Despite the government setting the minimum wage at Rs 17,300 per month, the report indicates a critical situation regarding its implementation.

Compared to the previous year, the situation has deteriorated further. In 2079 BS, 15.30% of industrial establishments failed to pay the minimum wage, while this figure rose to 21.7% in 2080 BS. Additionally, a staggering 72.6% of companies did not provide minimum wage and overtime perks to workers hired through labor outsourcing companies in 2080 BS.

The report warns that the exploitation of laborers is reaching a critical point, with violations of labor laws becoming increasingly prevalent. While the Labor Act-2074 BS stipulates that workers cannot be forced to work more than eight hours a day and 48 hours a week, effective implementation remains lacking.

On a relatively positive note, the report indicates a decrease in industries employing child labor. In 2079 BS, industries employing children as workers stood at 0.75%, decreasing to 0.6% in 2080 BS.

In response to the findings, GEFONT’s President, Binod Shrestha, read out a 25-point declaration prepared by the union ahead of International Labor Day on May 1. The declaration includes demands for an orientation session for laborers about the social security fund, strict implementation of minimum wage provisions, and removal of provisions hindering cases against forceful labor court transfers, among others.

Janmadev Jaisi, Chairperson of the Working Journalist Association, attributed the economic crisis in the country to the syndicate system in the industry and political instability, emphasizing that these factors disproportionately affect daily wage workers.

The union’s efforts to address the lax implementation of the Labor Act-2074 BS underscore the urgent need to secure the welfare of workers in Nepal. GEFONT’s report serves as a wake-up call for authorities to prioritize labor rights, enforce labor laws, and ensure decent working conditions and fair wages for all workers in the country.