PM Oli pledges to raise minimum wage to Rs 15,000, Private sector says 'not possible'

 Prime Minister KP Sharma Oli today announced that the minimum wage of workers will be increased to Rs 15,000 from the nest fiscal year that starts from July 16.

The premier's pledge to hike the minimum wage from the current Rs 13,450 in the time of Covid-19 pandemic has however surprised the private sector.

"Though the prime minister announced to increase the minimum wage, we are in no condition to pay regular wage due to second wave of pandemic, let alone increasing it," said one industrialist. "There has no been discussion on minimum wage hike either," he said, adding that the announcement came to a mere surprise to the private sector. "It could be the prime minister's election propaganda."

On the occasion of the 132nd International Workers’ Day today, Oli extending his best wishes to all working-class people said that minimum wage will be increased from the beginning of the new fiscal year.

But the private sector players think the prime ministers move is election oriented. "Since he has lost confidence from every quarter for his failure in securing livelihood of the people, he announced unilaterally the wage hike to get votes in the election," one of the industry players said, adding that such uncertainty in policy will not only discourage the private sector and investment but also force the industrialists to rethink their investment plans. "We are already suffering from the high cost economy, and the increase in wage will make Nepali products not only costly but also incompetent in the market."

Another industrialist said that the cost of production has been increasing lately due to various circumstances, and the increase in minimum wage will not only hurt the industries but also government plan to create employment in the country. "The government is forcing the Nepali youths to foreign employment by pushing the Nepalis industries to the closure."

The industries that have been hit by the lockdown from last March 24 for four months, and subsequent prohibitory order for another almost half year, have just started to gain momentum, the second wave of the pandemic struck the country. The government has imposed prohibitory order restricting the movement from Thursday to break the chain of coronavirus spread. The second wave seems more dangerous as it has posted over 5,000 new cases everyday.

There is a provision to hike the minimum wage every two years. But the industries, labours and government agreed last year not to increase the minimum wage during the pandemic.

"Job security and creation of additional job opportunities will be the priority of the government,’’ the prime minister said, adding that Nepali trade union movement had brought the people’s hardship and sufferings to the limelight.