Lumbini Province Records 3.72% Wage Hike in FY 2024/25

The Salary and Wage Index (SWI) for FY 2024/25 shows that Lumbini Province experienced a 3.72% wage hike, among the strongest increases across Nepal’s provinces. The index rose to 103.81 in mid-July 2025, up from 100.09 in July 2024, reflecting a steady expansion in wage levels.

This growth rate is notably above the national average of 2.63%, positioning Lumbini as one of the leading provinces in salary adjustments. Several factors contributed to this rise: growing industrial activity, particularly in manufacturing and agro-processing, expanding cross-border trade with India, and continued investment in infrastructure and logistics projects. These developments have fueled labor demand, lifting wages across sectors.

Compared to other provinces, Lumbini’s performance was second only to Sudurpaschim (+7.44%), but well ahead of Bagmati (+1.98%) and Koshi (+1.23%), which saw more modest gains. The strong wage growth indicates that Lumbini is emerging as a competitive labor market, benefiting from its strategic location, agricultural base, and rising business activity.

For workers, this wage increase offers improved purchasing power at a time when inflationary pressures are stabilizing. For employers, however, it may add to operational costs, especially in labor-intensive industries. The challenge going forward will be to balance rising wages with productivity and investment to ensure sustainable economic growth.