From fiscal year 2082/083, newly appointed Nepal Government employees will no longer receive pension or gratuity benefits. Instead, a contribution-based social security system will be implemented, requiring deductions from salaries for social protection.
The Government of Nepal has announced that employees appointed from fiscal year 2082/083 onwards will no longer be entitled to pension and gratuity benefits. Instead, they will be covered under a contribution-based social security system. The Ministry of Finance has issued a circular to all ministries, regulatory bodies, public institutions, boards, committees, and organizations to prepare and implement the necessary arrangements accordingly.
According to the Appointment Act, 2075 and the Appointment Regulation, 2075, a contribution-based social security system has been gradually made mandatory. In line with this, the new system will apply to all employees appointed from the current fiscal year 2082/083. The Ministry has directed that contributions be deducted from employees’ salaries, allowances, and service benefits and deposited into their accounts.
The circular also states that amendments have been made to the Appointment Regulation to enforce the contribution-based social security system as per the law. This system, already applied to workers outside the government sector, is now being extended to government service as well. The Ministry of Finance expects this policy to reduce long-term financial liabilities and promote transparent management.
Employees appointed under this system should not expect pension or gratuity payments. Instead, they will receive social security benefits after fulfilling service duration requirements through monthly contributions deducted from their salaries. The circular clearly mentions that the government will not bear any liabilities arising if the contribution-based system is not implemented.
The Ministry has urged concerned bodies to complete preparations on time and warned that delays in implementing the system will be their responsibility. This decision is believed to positively impact financial discipline in the public service sector, long-term liability management, and worker protection.
This article was originally published on https://bajarkochirfar.com Translated with the help of AI and reviewed by our editorial team.
