Kathmandu, June 10: The government is preparing a major overhaul of the Civil Service Act that could immediately affect more than 10,000 civil servants, with 5,482 employees potentially forced to retire if the proposed provisions come into effect through Parliament or an ordinance.
According to senior officials familiar with the draft under discussion at the Ministry of Law, Justice and Parliamentary Affairs, the proposed legislation would introduce compulsory retirement at either 55 years of age or upon completion of 30 years of service, whichever comes first.
The bill, forwarded by the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration, is currently under review at the Law Ministry. Officials said consultations are underway and the draft may soon be sent back to the originating ministry. As parliamentary passage could take time, discussions are also underway about introducing the law through an ordinance before mid-July, although no official decision has been announced.
The proposal would also cap pension benefits at a maximum of 30 years of service. Employees serving beyond 30 years would receive no additional pension benefits for the extra years worked.
Data from the Civil Service Book Administration Office show that 4,135 civil servants are already above 55 years of age, while 3,304 have completed more than 30 years of service. Another 1,957 meet both criteria. If the law is enforced immediately, a total of 5,482 employees would be required to leave service.
Those affected would include officials from the highest levels of government to lower administrative ranks. Among traditional gazetted and non-gazetted employees, 3,637 are over 55 and 2,801 have completed 30 years of service. The largest impact would fall on non gazetted staff, including section assistants and clerks, where 2,154 employees are above 55 and 1,947 have completed 30 years in service.
The proposed changes would also affect senior officials. Thirty-two secretaries are above 55 years of age, while 20 have completed 30 years in service. If enacted, the law would also force Chief Secretary Suman Raj Aryal to retire.
Among joint secretaries, 180 are over 55 and 88 have completed 30 years of service. The figures stand at 501 and 259 respectively for under-secretaries, and 560 and 363 for section officers.
Employees in the health service, local service and other lev- based systems would also be affected. A total of 498 are above 55 years of age and 503 have completed 30 years in service.
The proposal marks a sharp departure from an earlier draft prepared in April 2026, which had proposed raising the retirement age to 60 with transitional arrangements. Under the current Civil Service Act of 1993, the mandatory retirement age is 58, while health service employees retire at 60 and judges between 63 and 65.
The government argues that the reform would create space for younger recruits. However, the proposal has sparked concern among civil servants, many of whom argue that abruptly shortening careers after decades of service would be unfair and disruptive.
People’s News Monitoring Service
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