Nepal approves bill on civil servants’ retirement — Kathmandu Post
The Government of Nepal has approved a bill amending the Civil Service Act, paving the way for its submission to parliament. The document provides for the one-time mandatory retirement from civil service of employees who will be 55 years old when the law comes into force or who will have 30 years of service, Kathmandu Post reports.
Pension payments
The bill includes provisions to preserve pension payments for civil servants who will be retired under the new rules. The changes were made following recommendations from the Public Service Commission, which drew attention to legislative guarantees concerning civil servants’ terms of service and social benefits.
According to a ministry official, employees retired solely because they have reached the age of 55 may be credited with up to three additional years of service for pension calculations, up to the current mandatory retirement age of 58. Those with 30 years of service may be credited with up to seven additional years depending on their age. For example, a civil servant with 30 years of service who is 51 may have seven years of service added for pension calculations.
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Transitional rule
Current Nepalese legislation sets mandatory retirement for civil servants at the age of 58 and does not include a requirement to retire after a specified number of years of work. The bill defines the age threshold of 55 or 30 years of service as a one-time transitional measure.
For employees who remain in service after this provision is applied, the retirement age limit is planned to be raised to 60. The Public Service Commission has also expressed concerns about differing rules for certain groups of employees and the possible deterioration of service conditions without their consent.
Bills concerning civil service were previously submitted to the House of Representatives in 2017 and 2022, but were not adopted. The current draft is to be sent to parliament after the government decision is formalized.
