The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Nepal’s Salary and Wage Index reached 103.22 in July 2025, up 2.63% year-on-year. Workers in Sudurpaschim, Lumbini, and Karnali gained the most, while Bagmati and Koshi lagged behind. For employers, rising wages improve retention but add cost pressures, highlighting the need for balanced wage and productivity growth.
In 2025, Sudurpaschim led wage growth (+7.44%), followed by Lumbini (+3.72%), Karnali (+3.09%), and Gandaki (+2.74%), all above the national average of 2.63%. Larger provinces like Bagmati (+1.98%) and Koshi (+1.23%) lagged behind, showing regional disparities in wage growth trends.
Sudurpaschim Province recorded the strongest wage growth in FY 2024/25, rising 7.44%, with its SWI climbing to 108.03. This growth far outpaces the national average of 2.63%, reflecting labor demand, remittance-driven consumption, and wage adjustments amid migration pressures.
Karnali Province wages rose 3.09% in FY 2024/25, with the index reaching 103.95. Despite having the smallest share in Nepal’s national index (4.71%), Karnali outperformed the national average (2.63%), driven by development projects and rural labor demand.
Lumbini Province wages rose 3.72% in FY 2024/25, with the index climbing to 103.81. This growth outpaced the national average (2.63%), driven by industrial expansion, trade activity, and infrastructure projects, making Lumbini one of Nepal’s fastest-growing labor markets.
Gandaki Province’s wages rose 2.74% in Q4 FY 2024/25, the highest quarterly increase in Nepal. With its SWI reaching 103.44, Gandaki outpaced the national average (0.27%), fueled by tourism recovery, infrastructure growth, and strong remittance support
Bagmati Province recorded 1.98% wage growth in FY 2024/25, with the index rising to 102.36. The increase is below the national average (2.63%) and highlights economic pressures in the capital region, where wages are lagging behind rising living costs.
Koshi Province saw the slowest wage growth in FY 2024/25, rising only 1.23%, compared to Nepal’s average of 2.63%. With its index at 101.50, Koshi lags behind provinces like Sudurpaschim (+7.44%) and Lumbini (+3.72%), reflecting weaker labor market dynamics and slower industrial expansion.
Nepal’s Salary and Wage Index rose 2.63% in FY 2024/25, with the overall index at 103.22. Sudurpaschim (+7.44%), Lumbini (+3.72%), and Karnali (+3.09%) led wage growth, while Bagmati (+1.98%) and Koshi (+1.23%) saw smaller gains. The data highlights regional disparities in wage growth across provinces.
Nepal’s average wholesale inflation was 3.84% in 2024/25, down from 8.47% in 2022/23, showing improved stability. While prices spiked in winter (Dec +6.52%), they slowed sharply by mid-2025 (July +1.05%), pointing to easing pressures but persistent seasonal risks.