Nepal Shifts to Fortnightly Salary Payments for Government Employees: A Bold Move!

Nepal's New Salary Payment System

Kathmandu: In a significant policy shift, the Nepalese government has announced that its employees will now receive their salaries every two weeks, departing from the traditional monthly payment schedule.

This decision, made by the Finance Minister on April 17, aims to enhance economic activity by allowing government workers to access their earnings more frequently. A formal circular has been dispatched to relevant government bodies to facilitate this change.

Globally, it is uncommon for government employees to be paid bi-weekly, with most nations, including those in South Asia like India, Pakistan, and Bangladesh, adhering to a monthly payment structure.

Officials in Nepal believe that this new payment frequency will boost the economy by increasing disposable income among government employees, thereby encouraging spending and enhancing cash flow.

While the exact timeline for implementing this new system remains uncertain, Dipak Lamichhane, spokesperson for the Financial Comptroller General Office (FCGO), indicated that there are no technical barriers to executing this plan. The FCGO oversees salary disbursements for civil servants, the military, and police forces.

However, Lamichhane noted that legal adjustments may be necessary, as the existing Civil Service Act mandates monthly salary payments. Specifically, Section 28 of the law stipulates that civil servants receive their salaries only after the month concludes.

He expressed optimism that a solution could be found to expedite the implementation of this decision. With the parliamentary session currently inactive, the government might consider introducing an ordinance to put this plan into action swiftly.

Discussions are ongoing regarding the best approach to enact this new salary payment system.