Karnali Province Wages Up 3.09% Despite Smallest Share in National Index

The Salary and Wage Index (SWI) data for FY 2024/25 shows that Karnali Province, despite having the smallest weight in the national index at just 4.71%, recorded a strong 3.09% wage increase. The index rose to 103.95 in mid-July 2025, up from 100.84 in July 2024, reflecting steady upward momentum in labor earnings across the region.

Karnali’s wage growth outpaced the national average of 2.63%, indicating that even Nepal’s least populous and economically less developed province is seeing positive changes in income levels. This rise can be attributed to ongoing government-led development programs, infrastructure expansion, and rural employment initiatives, which are creating demand for local labor. Additionally, out-migration of workers to other provinces and abroad may have tightened the local labor supply, pushing wages upward.

Compared with other provinces, Karnali’s wage growth sits behind Sudurpaschim (+7.44%), Lumbini (+3.72%), and Gandaki (+2.74%), but ahead of Bagmati (+1.98%) and Koshi (+1.23%). This suggests that while Karnali contributes the least to the national SWI due to its smaller workforce, it is among the provinces experiencing above-average wage momentum.

For workers, higher wages mean better financial security, though challenges remain given the province’s limited economic base and high cost of transporting goods and services. For policymakers, the data highlights the importance of sustaining development investments in Karnali to ensure that wage growth is matched by job creation and productivity improvements.