Chapter-8 Provisions Relating to Remuneration

34. Entitlement of labours to remuneration:

(1) Each worker shall be entitled to receive the remuneration and benefits from the date on which he or she starts the work.

(2) The remuneration and benefits which a labour is entitled to shall be so specified in the employment contract as not to be less than that specified in this Act and the rules framed under this Act.

(3) Except as mentioned in the collective agreement between the employer and the labour, the remuneration and benefits being received and enjoyed by the labour shall not be decreased.

35. Payment of remuneration:

(1) In paying the remuneration to the labour, the employer shall make such payment in accordance with the provision, if any, mentioned in the employment contract to that effect, and failing such a provision, at such a time as determined by the employer.
Provided that the remuneration shall be paid as follows to the following labour:

(a) In the case of a labour working for a period of less than one month, within three days from the date of completion of the work.

(b) In the case of a labour employed in casual work, immediately after the completion of the work.

(2) Notwithstanding anything contained in sub-section (1), the interval between the dates for payment of remuneration shall not be more than one month.

36. Entitlement to annual increment in remuneration (grade):

Any labour who has completed one year of service period shall be entitled to an annual increment in remuneration (grade) each year in an amount equal to at least half a day remuneration based on the monthly basic remuneration to which the labour is entitled.

37. Entitlement to festival expense:

(1) Each labour shall be entitled to an amount equal to the basic remuneration of one month as the festival expense each year for the festival to be celebrated according to his or her religion, culture and tradition.

(2) A labour may make a written request to the employer for the payment of the festival expense referred to in sub-section (1) at one time in one fiscal year on the occasion of the main festival to be celebrated according to his or her religion, culture and tradition. In the case absent such a request, the festival expense shall be provided at the time of Dashain festival every year.

(3) A labour who has not completed one year of service period on or before the day of payment of the festival expense shall be entitled to such expense in proportion to the period of service he or she has completed.

38. Prohibition on deduction of remuneration:

(1) Except in the following circumstance, no amount shall be deducted from the remuneration receivable by the labour:

(a) Any tax, fees leviable under law,

(b) Any amount of contribution required to be made for provident fund or insurance or any other social security,

(c) Any amount required to be deducted pursuant to the order or decision by any judicial or quasi-judicial body or arbitration,

(d) Such amount as prescribed for such service or facility provided by the employer to the labour as prescribed,

(e) Amount of remuneration for the period during which the labour remains absent from the work,

(f) In the event of loss of or damage to cash or in-kind of the employer with ulterior motive or recklessly, such amount as mentioned in the cash or in-kind book or the amount equivalent to the production cost in the case of a manufactured good,

(g) Such amount as specified in the collective agreement to be deductible from remuneration,

(h) Membership fee chargeable by the trade union,

(i) Amount of loan or advance provided or paid to the labour by the employer.

(2) While deducting the amount pursuant to sub-section (c), (d), (e), (f), (g), (h) or (i), it shall be deducted from the monthly remuneration that remains after deducting the amounts set forth in sub-sections (a) and (b).

(3) The limit of, procedure and other provisions relating to the amount deductible under sub-section (2) shall be as prescribed.

(4) Where a labour dies or is relieved of service for any reason whatsoever before the amount deductible pursuant to this Section is deducted, such an amount may be deducted from any amount whatsoever payable to such a labour.

(5) Where the amount to be deducted cannot be recovered even after making deductions pursuant to sub-section (4) and the labour has died, the employer shall give a notice of fifteen days to his or her heir under the law for the payment of such an amount.

(6) Where the amount is not paid even within the period referred to in sub-section (5), the employer may make a petition to the court for the recovery of such an amount within thirty-five days of the expiry of the period.

39. Remuneration for reserve period:

Where a labour is held in reserve pursuant to this Act, the employer shall pay half the remuneration which he or she is entitled to until the work is resumed.

Provided that such a labour shall not be required to make attendance in the workplace during the reserve period unless the requirement of attendance is mentioned in the notice on holding the labour in reserve.