Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Equal Remuneration Convention, 1951 (No. 100) - Nepal (Ratification: 1976)

Articles 1 and 2 of the Convention. Addressing the gender pay gap and its underlying causes. The Committee notes the Government’s statement that the new Employment Policy of 2015 upholds the principle of equal remuneration and provides guidelines to create equal opportunity and employment across all sectors of the economy. It further notes that the Fourteenth Three-Year Development Plan (2016/17–2018/19) prescribes a comprehensive strategy to achieve sustainable social and economic development and encompasses five areas of focus, among which increase growth and employment through tourism, small and medium business and transformation of agriculture; and promotion of gender equality and social inclusion. The Government adds however that more time, efforts and resources are needed to make substantial improvements regarding gender inequality. The Committee notes that the Decent Work Country Programme (DWCP) acknowledges the persistence of gaps in women’s transition to decent work as women are mainly involved in agriculture, which is considered a low-return employment sector and, in urban areas, women are mostly employed in informal sectors with non productive, temporary, and low-quality jobs. Recalling that the last Labour Force Survey (LFS) was conducted in 2008, the Committee welcomes the fact that, in the framework of the DWCP and with the technical, advisory and financial support of the ILO, the Central Bureau of Statistics (CBS) designed and implemented the third LFS 2017–18. It notes that, according to the third LFS, significant gender disparities persist in the labour market where the labour force participation of women is 26.3 per cent compared to 53.8 per cent for men; 66.2 per cent of women are employed in the informal sector; and women represented only 13.2 per cent of workers in managerial positions. The Committee notes that the gender pay gap expressed in mean monthly earnings was estimated at 30 per cent and up to 33.3 per cent for median monthly earnings, while reaching more than 46 per cent for certain occupational categories such as professionals (46.2 per cent) and plant and machine operators and assemblers (46.5 per cent). The Committee observes that mean and median monthly earnings of women employed in same occupational category than men were systematically lower than those of men. The Committee further notes that, according to a survey published in June 2019 by the CBS, the gender pay gap is estimated at 29.45 per cent and exists at all levels of education (from 29 per cent for workers with a bachelor’s or equivalent degree and 23 per cent for workers with a master’s degree to 5.7 per cent for workers with doctoral degree). The Committee asks the Government to provide information on the concrete measures taken, including in the framework of the Employment Policy of 2015 and the Fourteenth Three Year Development Plan (2016/17–2018/19), to address the gender pay gap by combatting its underlying causes, such as vertical and horizontal occupational gender segregation and gender stereotypes, and by promoting women’s access to jobs with career prospects and higher pay. It asks the Government to provide information on any assessment made of the effectiveness of the measures implemented to that end, as well as on any study undertaken to assess the nature and extent of pay differentials in the informal economy. Welcoming the efforts made by the Government to collect updated statistical information on the labour market on 2017–18, the Committee asks the Government to continue to provide updated statistical information on the earnings of men and women, disaggregated by economic activity and occupation, in both the public and private sectors, as well as in the informal economy.

Article 2(2)(b). Minimum wages. Referring to its previous comment where it noted that minimum monthly wages were established according to the category of workers (unskilled, semi-skilled, skilled and highly skilled), the Committee notes with interest that the new Labour Act of 2017 repealed such classification of workers. Section 34 of the new Labour Act provides that remuneration and benefits will be defined by the employment agreement and shall in no case be less that the minimum wages fixed under the Labour Act and the Regulations. It further notes that, pursuant to section 106 of the Labour Act, in July 2018, the Government set two separate hourly, daily and monthly minimum wages composed of basic remuneration and “dearness” allowances (essentially a cost of living adjustment) for workers in tea estates, and other workers. The Committee however observes that the minimum wages (both basic remuneration and “dearness” allowances) for workers in tea estates is lower than those set for other workers. In light of the persistent gender pay gap and occupational gender segregation of the labour market as highlighted by the third Labour Force Survey 2017/2018, the Committee wishes to highlight that when minimum wages are set at sectoral level, special attention is needed in the design or adjustment of sectoral minimum wage schemes to ensure that the rates fixed are free from gender bias, and in particular that certain skills considered to be “female” are not undervalued (see General Survey on fundamental Conventions, 2012, paragraph 683). Consequently, the Committee asks the Government to provide information on the specific measures taken to ensure that, in setting minimum wages for workers in tea estates and for other workers, rates were fixed based on objective criteria, free from gender bias, to ensure that the work in sectors with a high proportion of women is not being undervalued in comparison with sectors in which men are predominantly employed. It asks the Government to provide information on any future developments with respect to the coverage and rates of minimum wages. The Committee asks the Government to provide statistical information on the percentage of women and men who are paid the minimum wage in tea estates and in other workplaces.

Articles 2(2)(c) and 4. Collective agreements and cooperation with employers’ and workers’ organizations. The Committee notes that the new Labour Act provides that an agreement on remuneration can be reached through collective bargaining between the employer and the workers. The Government indicates, in its report, that the Minister of Labour and Employment regularly conducts interactions with different stakeholders, including workshops on collective bargaining. Recalling the important role that can be played by collective agreements in the application of the principle of equal remuneration for men and women for work of equal value, the Committee asks the Government to provide samples of collective bargaining agreements containing clauses on equal remuneration for men and women workers for work of equal value. The Committee further asks the Government to provide information on any concrete steps and actions undertaken to promote actively the implementation of the principle of the Convention with the cooperation of the social partners, including through training and awareness-raising activities, and the results of such initiatives.

Article 3. Objective job evaluation. The Committee notes that the new Labour Act provides that the assessment of “equal value” shall be based on the nature of work, time and efforts required, skills and productivity. The Committee recalls that the effective implementation of the principle of the Convention requires some method of measuring and comparing the relative value of different jobs held by men and women, through an examination of the respective tasks involved, undertaken on the basis of entirely objective and non-discriminatory criteria, such as skill, effort, responsibilities and working conditions, in order to avoid the assessment being tainted by gender bias. It further recalls that measures for the objective evaluation of jobs can be taken at the enterprise, sectoral or national level, in the context of collective bargaining, as well as through wage fixing mechanisms (see General Survey, 2012, paragraph 695). The Committee asks the Government to provide information on any measures taken to promote, develop and implement practical approaches and methods for the objective evaluation of jobs, in both the public and private sectors, based on criteria that are free from gender bias, such as qualifications and skills, effort, responsibilities and conditions of work, with a view to ensure the effective implementation of the principle of the Convention, in the framework of the new Labour Act of 2017 or otherwise. It asks the Government to provide information on any job evaluation exercise carried out in the public sector, indicating the criteria used and the measures taken to ensure that men and women receive equal remuneration for work of equal value, as well as on any measures taken to promote the use of objective job evaluation methods and criteria that are free from gender bias in the private sector.

Monitoring and enforcement. In its previous comment, the Committee asked the Government to provide information on measures adopted or envisaged to raise awareness of the principle of the Convention and the available procedures, among workers, employers and their organizations, as well as to enhance the capacity of judges, labour inspectors and other officials to identify and address unequal remuneration. The Committee notes the Government’s statement that the Ministry of Labour and Employment conducted awareness-raising programmes at the local and central levels and disseminated relevant information on the principle of equal remuneration for men and women for work of equal value through the local radio stations. It notes the Government’s indication that 1,070 labour inspections were carried out in the formal sector but that no case of discrimination in remuneration was identified. The Government adds that there are no reported cases relevant to the principle of the Convention. The Committee wishes to recall that no society is free from discrimination and that the absence of cases or complaints could indicate a lack of an appropriate legal framework, lack of confidence in, or absence of, practical access to procedures, or fear of reprisals (see General Survey, 2012, paragraph 871). In that regard, it notes the Government’s indication that during a tripartite meeting conducted in February 2017 on the Government’s report on the application of the Convention, several participants raised concerns regarding the need to effectively implement the national legislation to eliminate wage discrimination against women, particularly in the informal sector. The Committee notes that similar concerns were expressed, in its 2018 concluding observations, by the United Nations (UN) Committee on the Elimination of Discrimination against Women (CEDAW) which: (i) highlighted the inadequate inspection of workplaces both in the formal and informal sectors, including in domestic work and the entertainment sector, to guarantee the implementation of the working conditions defined in the new Labour Act; as well as (ii) the low level of awareness among women and girls of their rights and the mechanisms available for gaining access to justice and seeking remedies (CEDAW/C/NPL/CO/6, 14 November 2018, paragraphs 10(a) and 34(d)). The Committee therefore asks the Government to provide information on the measures taken to strengthen the inspections of workplaces, in both the formal and informal sectors, in order to effectively address and eliminate wage discrimination against women in practice, including by ensuring the effective implementation of the new Labour Act of 2017. It also asks the Government to provide information on the number, nature and outcome of any cases or complaints concerning pay inequality dealt with by the labour inspectors, the courts or any other competent authorities.