Government Plans Salary Hike for Civil Servants in Upcoming Fiscal Year

Kathmandu. The government is preparing to increase the salaries of government employees through the budget for the upcoming fiscal year 2083/84.

Then Finance Minister Janardan Sharma had increased the salaries of civil servants and teachers by 15 percent in the budget for the fiscal year 2079/80. However, the salaries of civil servants have not been increased since then.

According to legal provisions, the government must increase salaries at two-year intervals, but the salaries of civil servants have not been increased for the last three years. Finance Minister Dr. Swarnim Wagle will likely increase salaries after three years in the budget for the upcoming fiscal year.

According to sources, Finance Minister Wagle is also positive about increasing the salaries of civil servants. However, as the budget is finalized only on the night before its public release, it has not yet been decided on what basis or how much the salary will be increased.

The Salary and Allowance Review Committee, chaired by Chief Secretary Sumanraj Aryal, had recommended to the government to increase the salaries of civil servants a few days ago. Sources said the committee has recommended increasing the monthly salary of office assistants to Rs 35,000 and that of the Chief Secretary to Rs 121,000.

Currently, the starting salary scale for office assistants is Rs 27,612 and for the Chief Secretary is Rs 77,211. The committee has recommended increasing the current salary by approximately 27 percent for office assistants and 56.71 percent for the Chief Secretary.

According to sources, although the committee has made recommendations to the government, discussions are ongoing within the government about how much to increase, considering the current economic situation. Employees have been demanding that the government increase salaries in the upcoming fiscal year as salaries have not been increased for a long time.

Meanwhile, Finance Minister Dr. Swarnim Wagle mentioned in a parliamentary committee on Friday that the state's mandatory liabilities are increasing and resources are limited. He clarified that revenue is not sufficient to cover mandatory liabilities such as employee salaries, pensions, social security, and loan principal and interest.

"Last year, mandatory liabilities were 1330 billion while revenue collected was only 1080 billion; the state is in deficit even when it sleeps," the Finance Minister said. He indicated that increasing employee salaries in a budget that cannot even cover mandatory liabilities will create additional liabilities.

Finance Minister Wagle said, "We are bound, resources are limited, but our desires and expectations are unlimited. It is always difficult for the Ministry of Finance to fulfill unlimited desires amidst limited resources."