Ministry of Labour Warns Employers on Minimum Wage and Social Security Obligations for Trainee Workers

Employers engaging trainee workers, including health workers, nursing staff, teachers, and employees at private and institutional establishments, must provide minimum remuneration and social security benefits as required under Section 18(3) of the Labour Act, 2074 (2017), as per the press release issued on 2082/12/23 (6 April 2026).

• Introduction

The Ministry of Labour, Employment and Social Security, Government of Nepal, has issued a press release reminding all employers of their legal obligations towards trainee workers under the Labour Act, 2074 (2017).

The Ministry notes that Section 18(3) of the Labour Act, 2074 (2017) contains a clear legal provision requiring employers engaging persons as trainees to provide them with at minimum benefits without any reduction. The Ministry has received complaints and grievances from trainee health workers and nursing staff employed at various hospitals and health institutions, teachers and employees at private and institutional schools, and workers at various other establishments, indicating that they have not been receiving the minimum remuneration and other benefits prescribed by law. The Ministry has taken serious note of these complaints.

• Key Highlights

Section 18(3) of the Labour Act, 2074 (2017) explicitly requires employers to provide trainee workers with the following benefits without any reduction: 

• Minimum remuneration;
• Sick leave;
• Gratuity;
• Provident fund; and
• Insurance and other social security benefits.

All employers are urged to fully comply with the minimum remuneration and social security provisions of the Labour Act, 2074 (2017) and prevailing laws.

Employers found to be depriving trainee workers of minimum remuneration and prescribed benefits will be subject to action under prevailing law.

• Practical Implications

1. Obligations Towards Trainee Workers

Employers across all sectors, including hospitals, health institutions, schools, and other private and institutional establishments, must ensure that trainee workers receive all benefits prescribed under Section 18(3) of the Labour Act, 2074 (2017). The law makes no distinction between permanent employees and trainees with respect to these minimum entitlements; trainees are equally protected.

1. Sectors Under Particular Scrutiny

Given the nature of complaints received, the Ministry’s notice signals heightened scrutiny of the following sectors:

1. Hospitals and health institutions employing trainee health workers and nursing staff; and
2. Private and institutional schools employing trainee teachers and support staff.

Employers in these sectors should conduct an immediate internal review of their remuneration and benefit structures to ensure full legal compliance.

1. Consequences of Non-Compliance

Employers found to have deprived trainee workers of minimum remuneration or any other prescribed social security benefit will be subject to action under the Labour Act, 2074 (2017) and other prevailing laws. 

Snapshot of Press Release: