SALARY COMMISSION Proposes MINIMUM SALARY of Rs. 35,000 for GOVERNMENT EMPLOYEES
Date: April 25, 2023
The High Level Salary Facilitation Commission has suggested that the minimum salary for government employees in Nepal should be increased to Rs. 35,000. The commission, headed by Lilamani Paudyal, the former Chief Secretary, submitted its report to Prime Minister Pushpa Kamal Dahal Prachanda on 20 Falgun 2079. The commission has also proposed a series of additional benefits for government employees.
According to the commission’s report, the minimum salary for government employees has been determined based on the amount required for livelihood. The report stated that the lowest level employee would need Rs. 34,651 to earn a living in the Kathmandu Valley. The commission arrived at this figure by conducting a family budget survey conducted by Nepal Rastra Bank in 2071, which estimated the minimum livelihood of a family (a family of four) to be Rs. 28,449. The commission added the annual price increase to reach the current figure.
The commission has also suggested that the salary of the Chief Secretary should be Rs. 122,500. With this recommendation, the difference between the minimum and maximum salary will be three and a half times.
The commission has also recommended that employee salaries should include additional benefits such as the monthly salary, employee provident fund addition, lunch allowance, transportation allowance, educational allowance, and the amount deposited in the medical treatment fund. Additionally, the commission has suggested that Rs. 2 million for officers and Rs. 1.5 million for gazetted and unranked employees should be included in life insurance and employee welfare fund. The commission has also proposed house rent from 9 percent to at least 4.5 percent of the salary allowance.
To ensure that employees and their families receive proper health treatment, the commission has suggested that the money currently arranged for treatment be canceled, and that leave should not be accumulated by giving money instead of accrued and sick leave. Instead, the commission recommends that employees receive a certain amount of money when they retire.
If the commission’s recommendations are fully implemented, the salary of the lowest-paid office assistant will reach Rs. 35,000, which is a significant increase from the current minimum salary of Rs. 26,082. However, the Pay Commission has also suggested that a certain percentage should be deducted for early retirement to discourage the trend of taking pension by resigning while still active.
The report also suggests that the financial burden on civil servants will increase by 66 billion rupees if the recommendations are fully implemented. Nonetheless, the High Level Salary Facilitation Commission’s report has recommended significant changes to the salary and benefits of government employees in Nepal.
The report is based on the recommendations of the High Level Salary Facilitation Commission.
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Stay tuned for more updates on the implementation of the commission’s recommendations.