My Republica

Shuvangi Khadka

Shuvangi Khadka is a researcher at the Samriddhi Foundation, an independent research and educational public policy institute based in Kathmandu.

The Economics of Increasing Minimum Wage

Published On: August 11, 2021 01:06 PM NPT By: Shuvangi Khadka

In Nepal, the minimum wage was introduced in the fiscal year 2007/08. Between 2007/08 and 2018/19, our economic growth has remained at an average of 4.59 percent while the minimum wage over the last decade has increased by 400 per cent. The gap between productivity and minimum wage seems to be ever-widening. The government is more focused on increasing access to the share of the shrinking economic pie instead of expanding the whole pie.