Government Raises Salary of Civil Servants and Teachers by 21 Percent

The government has announced a 21 percent increase in the salaries of civil servants and teachers. Finance Minister Dr. Swarnim Wagle made the announcement while presenting the national budget for the fiscal year 2083/84 in Parliament on Friday. The salary revision is expected to benefit government employees, teachers, security personnel, and pensioners across the country.

According to the Finance Minister, the salary increment will be implemented through multiple components, including a 10 percent increase in basic salary, 10 percent linked to performance, and additional adjustments based on grade structure, resulting in an overall increase of 21 percent. With the revision, the minimum monthly salary of government employees is expected to reach around Rs 40,000, while senior officials will earn over Rs 100,000 depending on rank and grade.

The new salary structure will come into effect from Shrawan 1. However, employees are expected to receive the adjusted salary from Bhadra onwards. This is the first major salary revision in four years. The last increase was made in fiscal year 2079/80, when salaries were raised by 15 percent under then Finance Minister Janardan Sharma.

Since then, salaries had remained unchanged, although the government introduced a monthly inflation allowance of Rs 5,000 in the current fiscal year 2082/83. Under the Civil Service Act, government salaries are required to be revised every two years. However, the government had not implemented an increase for the past three fiscal years, citing resource constraints.

Officials say rising inflation and cost of living made the revision necessary, making it difficult for employees to manage expenses under the previous salary structure. The decision was made based on recommendations from the Salary and Benefits Review Committee led by Chief Secretary Suman Raj Aryal.

The committee had suggested revising salaries based on revenue growth, number of positions, and inflation trends over the past three years. It had recommended a minimum salary of Rs 35,000 and a maximum of Rs 121,000. However, the government did not fully adopt all recommendations.

The salary increase will also apply to teachers, security forces, and pensioners, whose benefits are linked to government pay scales. Current salary levels include Rs 77,211 for the Chief Secretary, Rs 72,082 for Secretaries, Rs 56,737 for Joint Secretaries, Rs 48,737 for Under Secretaries, Rs 43,689 for Section Officers, Rs 43,389 for Non-Gazetted First Class officials, and Rs 27,612 for office assistants.

The Finance Ministry acknowledged that the salary hike will put pressure on government finances. It stated that unnecessary expenditures will be reduced and revenue collection efforts will be strengthened to manage the increased fiscal burden.