Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Starting from the fiscal year 2082/83 BS (mid-July 2025 onward), all newly appointed government employees in Nepal will be brought under a contribution-based social security system instead of the traditional pension and gratuity scheme, according to a new directive issued by the Ministry of Finance.
In a circular dispatched to all ministries, regulatory bodies, public institutions, boards, committees, and academies, the Ministry of Finance has instructed them to make necessary arrangements for the implementation of the new social security system. This move aims to shift Nepal’s civil service benefits structure toward a more sustainable and modern framework aligned with global practices.
The ministry also clearly stated that the Government of Nepal will not bear any financial liabilities that may arise from the failure to implement the contribution-based system in time. This signals a firm transition away from the decades-old pension model, which has posed growing fiscal burdens on the state.
The new system requires both employers and employees to contribute a defined portion of the salary to a social security fund, ensuring retirement benefits without long-term government liability. This reform is expected to enhance accountability, financial discipline, and transparency in public employee benefits.
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