Koshi Province Wages Grow 1.23%: Slowest Among Provinces

The latest Salary and Wage Index (SWI) for FY 2024/25 reveals that Koshi Province recorded the slowest wage growth in Nepal, with an increase of just 1.23% year-on-year. The index for Koshi reached 101.50 in July 2025, compared to 100.27 in July 2024, indicating only a modest rise in worker earnings despite broader national growth.

This subdued performance contrasts with the national average wage growth of 2.63%, and even more sharply with provinces such as Sudurpaschim (+7.44%) and Lumbini (+3.72%), which saw significantly higher wage adjustments. Koshi’s muted wage rise suggests that the region’s labor market remains relatively stagnant, possibly due to slower industrial activity, limited private sector expansion, and migration of skilled workers to other provinces or abroad.

Given that Koshi accounts for 15.59% weight in the national wage index, its weak performance holds back the overall growth rate. The data highlights a need for stronger employment policies, investment in industries, and labor market reforms to ensure wages rise in line with living costs. Without such efforts, Koshi workers may continue to face wage stagnation compared to their counterparts in faster-growing provinces.