Nepal Shifts to Fortnightly Salaries for Government Employees to Boost Economy

As per a Finance Minister-level decision taken on April 17, government employees will be paid on a fortnightly basis (twice a month), and a circular has already been issued in the name of concerned government agencies to implement the decision.

This practice is not common in most parts of the world, where government employees are generally paid on a monthly basis. In South Asia as well, countries such as India, Pakistan, Bangladesh, Bhutan, Sri Lanka, and the Maldives all follow a monthly salary system for government employees.

Nepali government officials said the decision was taken to help revitalize the economy, as putting money into the hands of government employees more frequently could lead to increased spending. Improving cash flow for employees could stimulate regular economic circulation, they say.

It is not immediately clear when the government will begin implementing the decision. "Technically, there is no problem for us to implement this system," said Dipak Lamichhane, spokesperson for the Financial Comptroller General Office (FCGO), which is responsible for releasing the salary payment to the government employees. "We can release the salaries of civil servants, the Nepal Army, Police, Armed Police Force, and other government employees at any time."

However, he said that implementing the new decision may require legal amendments, as the Civil Service Act of Nepal provides for monthly salary payments.

Section 28 of the law states that each civil servant shall receive salary and allowances, if any, after the completion of each month.

"Perhaps some way out could be found to implement the government's decision early," Lamichhane said. With the parliamentary session not currently in operation, the government has the option of introducing an ordinance to implement the decision immediately.

"We are discussing how to implement the government's decision," he added.

- IANS