Kathmandu, July 17: The government has significantly increased the salaries of public sector employees to help offset rising living costs and boost morale, with the revised pay scale taking effect today, the first day of the new fiscal year.
While presenting the national budget on May 29, Finance Minister Dr. Swarnim Wagle announced a 10 percent increase in the starting salary scale for civil servants. The government has also retained the existing cost of living allowance after salaries remained unchanged for the past four years.
The finance minister also announced a new performance-based incentive system, under which employees will be eligible for an additional monthly allowance of up to 10 percent of their basic salary based on performance.
With the salary adjustment and incentives combined, government employees will see their total remuneration increase by about 21 percent.
Under the revised pay structure, the minimum monthly salary, including grade increments, for civil servants, Nepal Army personnel and public-school teachers has risen to around Rs 40,000, while employees in the highest ranks will receive more than Rs 100,000 per month.
People’s News Monitoring Service
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