New Delhi: In a first for any South Asian country, the government in Nepal has decided to begin paying its civil servants every 15 days. The decision, approved at the finance ministry level on 17 April, directs that civil servants receive wages on a fortnightly basis. A circular has already been issued to begin implementation, and officials say the change could eventually extend to teachers, security forces and other public-sector workers.
Government officials said the policy is intended to inject liquidity into the economy more frequently. News agency IANS quoted government officials pointing out that the decision was taken to energise the economy, as an improved cash flow for employees could increase regular economic circulation.
Still, legal and administrative hurdles remain. Nepal’s Civil Service Act currently mandates monthly payments. Section 28 specifies that each civil servant “shall receive salary and allowances, if any, after the completion of each month,” meaning amendments or legal adjustments may be required before the policy can be fully enforced.
The Financial Comptroller General Office, which oversees salary disbursement for government employees, is working on the operational framework. Officials described the shift as part of a broader effort to modernise wage systems and respond to rising cost-of-living pressures. While the policy is not mandatory for the private sector, it could influence payroll practices more widely if successful.
Govinda Bandi, Nepal’s former law minister, suggested the measure would likely be incorporated into the upcoming national Budget, expected to be presented in Parliament within weeks.
“They are likely to introduce this in the upcoming Budget, which is expected to be presented in Parliament in about a month. So they will probably include this provision in the Budget itself. It shouldn’t be a major issue, and implementation would begin from the next fiscal year, which starts around June-July,” he told ThePrint.
He added that the transition would not be immediate, citing the need for institutional readiness. “It won’t be implemented right away because it requires a proper system especially involving the central bank, Nepal’s Rastra Bank and the other private banks. So everything needs to be prepared in advance. There has to be preparation in terms of accounting systems and related processes.”
Beyond its economic intent, the move may also be tied to a broader reform agenda.
The newly sworn-in government led by PM Balen Shah, he added, may be testing public reaction to a wider set of administrative reforms. “It has been widely observed that there are significant challenges within the bureaucracy,” he said. “Therefore, reforming the bureaucracy is crucial. I think this may be a test step by the government to gauge public reaction.”
Bandi pointed to ongoing efforts to revise key legislation, including the Civil Service Act, and proposals to lower the retirement age for government employees from 58 to 55. “If this law gets approved by Parliament, it will make it easier for them to remove high-level bureaucrats who have only a short time left in service,” he said, suggesting that such measures could streamline the bureaucracy.
(Edited by Amrtansh Arora)
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