How much does a chartered accountant earn in Nepal? Or a doctor? How about a lawyer? How about a CEO of a fintech company or a graduate trainee at a ecommerce company? What is the starting salary of a fresh IT graduate? 

Do you know your colleague’s salary? How about your friend? While many job companies specify that they have a competitive salary structure or their salary is per industry standards, do we really know what the industry standard is or what is a competitive salary for the position you are applying for?

By the way did you know that a company offered equal salary to all its employees irrespective of their role, qualification or performance. And a CEO of another company went viral for taking a bold step by taking a pay cut to raise his employees’ starting salary to $70,000 to address the huge income gap between him and his lowest-paid employees and provide a living wage. Yes, Dan Price of Gravity Payments was a well known advocate for income equality. However, he has now resigned following rape allegations and investigations. 

Coming back to our topic, salary transparency refers to the practice of openly and honestly disclosing information about the salaries and wages of employees within an organization. This may include sharing the salary ranges for different job titles or levels within the company, as well as individual employee salaries. But disclosing or talking about your salary in Nepal is still seen as a taboo. Just google it and you will know what we are talking about. 

But why is discussing or disclosing your salary important? Because, there are a number of potential benefits to salary transparency, including:

Eliminating pay disparities: By sharing salary information, organizations can help ensure that all employees are being fairly compensated for their work, regardless of their gender, race, or other characteristics.

Promoting fairness: Salary transparency can help create a sense of fairness and equality within an organization, as employees can see that their pay is based on their qualifications and contributions, rather than on any biases.

Improving morale: Employees who feel that they are being fairly compensated are more likely to be satisfied with their jobs and have higher morale.

Attracting top talent: Companies with transparent salary policies may be more attractive to potential employees, as they can be confident that they will be fairly compensated.

And more importantly, the fresh graduates get a clear picture and have a realistic expectation of their starting salaries. Even job interviews may get less awkward when you know what the role you have applied for offers. 

How many times have you gone back and forth discussing about your job application and also attended interviews only to realize that the salary is not what you expected? And hence it is also important for companies to disclose their pay range whenever they announce a vacancy. Just imagine how much effort and time this will save. 

However, there can also be challenges to implementing salary transparency, such as concerns about employee privacy and potential legal issues. It's important for organizations to carefully consider the potential benefits and drawbacks before implementing a salary transparency policy.

Would you disclose your salary if you could do that anonymously? How well do you know your salary? Do you know what your gross salary is or how your in hand salary i.e. the salary that gets credited to your bank account monthly is calculated? You may want to know about the standard deductions like social security fund contribution (provident fund, gratuity etc.) and personal income tax. Salary tax calculator (in hand or take home salary calculator) by Tax Talk Nepal may be a great reference for you to understand various salary related concepts and also to calculate your in-hand salary if you know your gross salary. 

Do you know that the Nepal Government sets the minimum wage or salary that an employer in Nepal can pay its employees? Do you know what the minimum wage in Nepal is?