Nepal’s Salary and Wage Index Rises 2.63% in FY 2024/25: Provincial Breakdown

The Salary and Wage Index (SWI) of Nepal increased by 2.63% in FY 2024/25, reflecting steady but moderate growth in wages across provinces. The overall index reached 103.22 in mid-July 2025, compared to 100.57 in July 2023/24. This marks a continuation of the upward trend since the index’s introduction, signaling gradual improvement in employee earnings despite broader economic challenges.

Looking at the provincial breakdown, the highest wage growth was observed in Sudurpaschim Province, which posted a sharp 7.44% increase, pushing its index to 108.03. This surge suggests higher demand for labor and possible wage adjustments in both public and private sectors. Lumbini Province (+3.72%) and Karnali Province (+3.09%) also recorded notable increases, indicating rising wage pressures in western Nepal.

In contrast, Bagmati Province, which carries the largest weight (31.89%), recorded a modest 1.98% rise, bringing its index to 102.36. Madhesh (+2.14%) and Koshi (+1.23%) reported relatively stable increments, while Gandaki Province stood out with a healthy 2.74% growth, showing consistency with its 7.87% rise between 2022/23 and 2023/24.

The data reveals a mixed pattern: while some provinces are seeing strong wage growth driven by labor demand and economic activity, others like Bagmati and Koshi remain comparatively stable. This indicates regional disparities in wage adjustments, likely influenced by cost-of-living variations, migration trends, and local economic opportunities.

For workers, the rise in the SWI is positive, but for employers and policymakers, it poses the challenge of balancing rising wages with productivity and inflation stability.