In reply to neilus:
Sherpas and all expedition staff are paid by the guiding company or their KTM agency.
Sherpas have insurance, paid for by the expedition operator / guiding company. Up to now this paid out approximately $10,500 for a death. This has reportedly now been increased to pay out c.$15,000, though apparently for only a little more premium it could pay out $23,000.
The $408 payment mentioned in the media is a separate payment by the government to the families of the dead Sherpas.
With around 330 foreign climbers paying $10,000 each the Ministry of Tourism has taken in around $3.3m dollars for the Everest season.
Some locals feel they deserve a greater share of this, in some way. Other than some fund for injured or killed Sherpas/staff, which it seems they now have, I'm not sure what form this share might take, or what their justification for having it is.
The Sherpas working relationship is with the guiding companies, and before them just regular expeditions. In theory Sherpas above BC are optional, always were, so that whole setup has until very recently been quite separate from 'government' aka the Ministry of Tourism, which just charges the Peak Fee / Royalty and some other charges and deposits.
In recent years obviously the Sherpas have become more critical to the whole show, have taken a much more dominant role and now it seems some locals, outside the regular expedition Sherpas and Icefall Doctors, are using the avalanche tragedy to attack the government, ostensibly to gain money and benefits for the Sherpas and other mountain staff. Or not.
In addition to the myriad other blogs and articles, I'd recommend reading those by Tim Mosedale and Grayson Schaffer - two quite different perspectives. This one is not that great but it does mention some monetary figures if that's your interest:
http://www.macleans.ca/news/world/the-everest-spring/
It also ends with a nice quote from Apa Sherpa that I think answers those harping on about how well Sherpas are paid and nobody forces them to do it. It's not really a choice:
"Apa Sherpa, the man who holds the record for most Everest summits with 21, ... says most Sherpas climb because they have no other choice….For the foreigners mountain climbing is a fun, an adventure. For the Sherpas it is an obligation...”
Post edited at 14:30