The Government of Nepal has decided to shift to a fortnightly salary system for its employees, with civil servants set to receive wages every 15 days instead of the traditional monthly cycle, according to a Reuters-aligned report.
The decision, approved at the finance ministry level, has been communicated to relevant departments for implementation, marking a significant departure from long-standing payroll practices in the region. Initially, the reform will apply to civil servants, with a phased rollout expected across other government-linked workforces.
Officials indicated that the move is aimed at improving cash flow for employees and enhancing household financial planning, while also boosting consumption in the broader economy through more frequent income circulation.
The Financial Comptroller General Office, which oversees salary disbursement, is working on the operational framework. Authorities have noted that while the transition is technically feasible, existing provisions under Nepal’s civil service laws, which mandate monthly salary payments, may require adjustments or legal backing for full implementation.
The government is also exploring extending the system to teachers, security forces and other public sector employees over time. However, the policy is not currently mandatory for the private sector, though it may influence payroll practices if successfully implemented.
The shift comes as policymakers look to modernise wage systems and respond to rising cost-of-living pressures, positioning more frequent pay cycles as a tool to improve employee liquidity and economic activity.
Source – https://www.bwpeople.in/article/nepal-govt-to-roll-out-fortnightly-salary-for-employees-603187