Gandaki Province Wages Rise 2.74%: Strongest Quarterly Growth in 2025

In FY 2024/25, Gandaki Province recorded the strongest quarterly wage growth among all provinces, with salaries and wages rising by 2.74% in the fourth quarter (mid-July 2025) compared to the previous quarter. The Salary and Wage Index (SWI) for Gandaki climbed to 103.44 from 103.07, reflecting robust wage momentum in a relatively short period.

This quarterly increase stands out against the national average of 0.27%, underscoring Gandaki’s stronger labor market dynamics. Factors contributing to this rise likely include increased tourism recovery, infrastructure expansion, and remittance-driven demand, which collectively boosted employment and pushed up wage levels. Unlike Koshi (+1.23%) and Bagmati (+1.98%), Gandaki managed to outperform even high-growth provinces such as Lumbini (+3.72% annual but slower quarterly growth).

Looking at the broader picture, Gandaki has shown consistent improvement over time. Between FY 2022/23 and FY 2023/24, wages in the province surged by 7.87%, one of the highest gains in Nepal, before sustaining growth momentum into FY 2024/25. This indicates that Gandaki is becoming a key growth hub outside Kathmandu, with improving job opportunities and rising wage competitiveness.

For workers, this means higher earnings potential and better compensation relative to other provinces. However, for businesses, it may raise labour cost concerns, particularly for small enterprises in Pokhara and surrounding areas, which could face margin pressures if wage growth outpaces productivity.