PM employment program: workers’ daily wage hiked, insurance made  compulsory

Published On: January 20, 2022 11:44 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 20: The government has increased the wage of workers involved in the schemes under the Prime Minister Employment Program (PMEP). Workers’ perks and benefits have increased and their accidental insurance has been made mandatory with the cabinet meeting held on the first week of January amending the PMEP Operational Guideline-2075 BS.

Joint Secretary at Ministry of Labour, Employment and Social Security and PMEP National Director Dandu Raj Ghimire informed that the decision to raise workers’ wage has come to effect from the current fiscal year with the cabinet endorsement of the guideline.

The ministry had earlier sent a proposal to the cabinet to amend the guideline after complaints were lodged from different quarters regarding low remuneration entitled to the unemployed youths in the employment schemes. From now onward, the minimum daily wage of the worker would not be less than Rs 577 as stipulated by the ministry.

Ghimire informed that the wage has been determined as per the government-stipulated minimum wage rate for the new fiscal year (Mid-July 2021). Before this, the unemployed youth involved in PMEP were entitled to get a daily wage of Rs 517. From the new fiscal year, daily wage has increased by Rs 60.

It may be noted that Finance Minister Janardan Sharma had directed the Labour Ministry to double the daily wage to unemployed youths.

The government had stipulated Rs 15,000 as minimum monthly salary inclusive of dearness allowance effective from last mid-July. According to this arrangement, the workers are entitled to get a daily wage of Rs 577.

As per the new arrangement, accidental insurance of the daily wagers would also mandatorily come into effect. With this, collective accidental insurance of 200,000 workers to be engaged in employment schemes among those listed in PMEP employment management information system has come into effect for the period of 100 days.

The ministry further shared that arrangements related to the increased wage and insurance will come into effect from the current fiscal year in line with the guideline. A total of Rs 20 million has been allocated for the current fiscal year for insurance.

According to the ministry, as many as 743, 081youth across the country have been enlisted as unemployed in the employment management information system. The government has allocated Rs 12 billion for the implementation of the program in the current fiscal year.


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