Manufacturing is the largest pay master

 Manufacturing sector is the largest pay master in the country, according to the National Economic Census 2018.

The first ever census – conducted by the Central Bureau of Statistics (CBS) – revealed that in terms of annual salary and wages payment ‘manufacturing’ such as tea factories and brick factories is the largest paying sector with Rs. 86 billion accounting for 20.3 per cent followed by ‘education’ such as schools, universities with Rs 68 billion (16.3 per cent) and ‘wholesale and retail trade; repair of motor vehicles and motorcycles’ as shops, supermarkets and department stores pay Rs 66 billion (15.6 per cent). “In Nepal, almost 80 per cent of the entities with paid employees were registered.”

The report on salaries and wages of persons engaged in the entities throughout Nepal – published by the CBS – also revealed that annual salaries and wages of ‘Registered’ entities were Rs 406 billion accounting for 96.4 per cent of the total. “On the other hand, those of ‘Not registered’ entities were 15 billion (3.5 per cent) only,” it reads, adding that the most of registered entities pay salaries and wages. 

The first ever National Economic Census 2018 was conducted with the technical support from Japan International Cooperation Agency (JICA). The census covered all fixed and movable establishments that existed in Nepal at the reference date of the census operation that was April 14, 2018. According to the census data, there were 900,924 entities in Nepal where 3,115,112 persons were engaged. 

The economic census collected information on average monthly salaries and wages from the entities with paid employees. There were 219,303 entities with paid employees in Nepal and the number of paid employees stood at 1,709,101, the census data revealed, adding that the annual salaries and wages came out to be Rs 421 billion. 

Nepal had 36,172 entities with paid employees and female managers; and their annual salaries and wages accounted for 8.5 per cent of the total. Looking at the annual salaries and wages of entities with female managers by industry, ‘financial and insurance activities’ was the largest section with Rs 7.2 billion accounting for 20.1 per cent, followed by ‘education’ accounting Rs 6.8 billion (19.0 per cent), ‘wholesale and retail trade, repair of motor vehicles and motorcycles’ accounting 4.1 billion (11.5 per cent).

Looking at the annual salaries and wages by district, Kathmandu – the capital – was the largest district with Rs 141 billion accounting for 33.4 per cent followed by Lalitpur with Rs 32 billion (7.6 per cent), Morang Rs 21 billion (5.0 per cent), Rupandehi Rs 18.5 billion (4.38 per cent), Kaski Rs 18.3 billion (4.35 per cent). There is a huge differences between three districts in Kathmandu Valley and other districts across the country because many head offices and entities with paid employees are located in Kathmandu Valley, and their all financial statements are managed by head office.

Likewise, Rukum East was the smallest district with Rs 100 million accounting for 0.02 per cent followed by Manang Rs 103 million (0.02 per cent); and Rasuwa Rs 173 million (0.04 per cent) in terms of annual salary and wages payment.