Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s wage and salary levels have risen notably in the first quarter of Fiscal Year 2082/83, with the national salary and wage index climbing 4.48 percent, according to the latest macroeconomic update released by Nepal Rastra Bank (NRB) on Sunday.
The central bank’s “Current Macroeconomic and Financial Situation” report, based on data up to mid-October, shows that wage growth has accelerated compared to last year, when the index had increased by only 3.31 percent during the same period. The rise reflects upward adjustments in labor costs, growing pressure from inflation in select sectors, and provincial disparities in wage competitiveness.
Gandaki Province Leads With the Highest Wage Growth
NRB’s provincial breakdown reveals sharp differences across the country, with Gandaki Province recording the highest annual point-to-point wage growth at 9.42 percent—more than double the national average.
According to the report, the province-wise wage growth rates are as follows:
Gandaki Province: 9.42% (highest in Nepal)
Lumbini Province: 6.68%
Sudurpashchim Province: 5.62%
Bagmati Province: 4.16%
Madhesh Province: 3.62%
Koshi Province: 1.12%
Karnali Province: 1.36%
Economists say the surge in Gandaki may be linked to rising labor demand in tourism, hospitality, construction, and service industries, especially as economic activities rebounded during the review period. Meanwhile, slower wage growth in Koshi and Karnali reflects comparatively weaker industrial expansion and limited private-sector hiring.
Rising Wage Index Signals Cost Pressure for Businesses
The nationwide increase in the salary and wage index indicates growing labor costs for companies across sectors. Employers—particularly in manufacturing, construction, and urban services—are expected to face higher payroll expenditure, reinforcing concerns about business competitiveness amid subdued domestic demand and low credit growth.
NRB’s report also shows that despite low inflation, wage pressures remain strong in service-oriented provinces, pointing to structural shifts in Nepal’s labor market and mobility patterns.
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