Nepal Implements Fortnightly Salary Payments for Government Employees
Synopsis
Key Takeaways
Kathmandu, April 20 (NationPress) In a significant shift, government employees in Nepal will now obtain their salaries every 15 days, marking a departure from the traditional monthly payment system.
Following a decision made by the Finance Minister on April 17, this new fortnightly payment schedule will take effect, and a circular has been dispatched to relevant government agencies to facilitate its implementation.
This practice is relatively uncommon globally, where most government employees, including those in neighboring South Asian nations such as India, Pakistan, Bangladesh, Bhutan, Sri Lanka, and the Maldives, typically receive monthly salaries.
Officials from the Nepali government have indicated that this decision aims to bolster the economy, suggesting that more frequent salary payments could enhance consumer spending. They believe that improved cash flow for employees will promote a more dynamic economic environment.
While it remains uncertain when this new payment system will commence, Dipak Lamichhane, the spokesperson for the Financial Comptroller General Office (FCGO), assured, “Technically, we can implement this system at any time.” He added that the FCGO oversees salary disbursements for civil servants, the Nepal Army, Police, Armed Police Force, and other government personnel.
However, Lamichhane pointed out that adapting to this new system might necessitate legal changes, given that the Civil Service Act of Nepal currently stipulates monthly salary payments. Specifically, Section 28 of the law mandates that civil servants receive their salaries and any applicable allowances at the end of each month.
“We may be able to find a solution to implement this decision sooner,” Lamichhane noted. With the parliamentary session currently inactive, the government has the option to introduce an ordinance for immediate implementation.
“We are in discussions about how to effectively roll out this new payment structure,” he concluded.