Banking Khabar / The Civil Service Bill registered by the government in Parliament proposes major changes to Nepal’s federal civil service system, covering retirement, recruitment, pensions, reservation, trade unions and administrative relations among the federal, provincial and local governments.
The bill, which has long been under discussion as part of efforts to restructure the administration in line with Nepal’s federal system, has drawn particular attention for its proposed changes to employees’ service periods and future opportunities.
Transitional Retirement Provision at 55
The bill proposes that employees who have already reached the age of 55 or completed 30 years of service when the law comes into effect would be retired under a transitional arrangement.
After the transition, civil servants would be subject to mandatory retirement upon reaching the age of 60. The proposed provision would increase the mandatory retirement age from the current 58 years.
If implemented in its current form, a large number of senior civil servants could retire at once. An initial assessment based on data from the National Personnel Records Office indicates that, under the current situation, 39 of the 53 secretaries, along with 214 joint secretaries, 635 under-secretaries and 753 section officers could face retirement.
However, the actual number could change depending on when the bill is passed and comes into effect.
Shorter Terms Proposed for Chief Secretary and Secretaries
The bill also proposes changes to the tenure of senior civil servants.
Under the proposed provisions, the Chief Secretary would serve a two-year term, while secretaries would have a three-year term. Currently, the Chief Secretary has a three-year tenure and secretaries have a five-year tenure.
Employees would retire when either their prescribed tenure or mandatory retirement age is reached, whichever comes first.
Pension Calculation Limited to 30 Years
Another significant proposal concerns civil service pensions.
Under the proposed system, only up to 30 years of service would be counted when calculating pension benefits. The proposed formula would calculate the pension by multiplying the employee’s final salary at retirement by the eligible service period, capped at 30 years, and dividing the result by 50.
The provision could directly affect employees who have served for longer periods. Under the current system, the entire period of service is taken into account for pension purposes.
Provision to Hire Outside Experts
The bill also proposes opening the civil service to external experts.
Where the government does not have the required skilled manpower, qualified individuals from outside the civil service could be appointed to specialized executive or expert positions for a specified period.
The proposed provision requires consultation with the Public Service Commission regarding the suitability of candidates. The government would determine the qualifications, selection process, performance contracts and terms of service for such appointments.
Administrative Relations Among Federal, Provincial and Local Governments
The bill seeks to clarify administrative relations among the three levels of government under the federal system.
Under the proposed structure, the Chief Secretary of a province would be a position under the federal civil service. The government could assign a federal civil servant at the 13th level to serve as the Chief Secretary of a province.
Similarly, the secretary of a provincial ministry would be positioned at the 12th level of the provincial civil service.
The bill also proposes that the formation of provincial and local services and their terms and conditions of service would be governed by provincial legislation.
Inclusive Reservation Quota Proposed to Increase
The bill proposes increasing the share of positions reserved for inclusive groups in open competitive recruitment from the current 45 percent to 49 percent.
Of the proposed 49 percent reserved quota, half would be allocated for competition among women, while the remaining half would be distributed among various inclusive groups.
The women’s quota would also incorporate different inclusive categories, including Khas Arya, Indigenous nationalities, Madhesi, Dalit, Tharu, Muslim, people from disadvantaged regions and persons with disabilities.
The bill proposes that an individual would be allowed to receive reservation benefits only once for gazetted and once for non-gazetted positions.
Two-Year Cooling-Off Period After Retirement
The proposed legislation also introduces a two-year cooling-off period for senior civil servants.
Gazetted special- or first-class officers who resign or retire would not be eligible for appointment to constitutional, diplomatic or other government positions until two years have passed from the date of their resignation or retirement.
The bill also proposes restrictions on working as an employee or consultant for organizations directly connected to the area of work of the agency where the individual served before retirement, or for organizations that regulate that agency, for a specified period.
New Provisions on Trade Unions, Transfers and Leave
The bill also proposes changes to provisions governing employee trade unions.
It includes arrangements for managing federal civil servants who were adjusted to provincial or local governments but have been unable to report to their assigned offices, as well as provisions concerning inter-provincial transfers, leadership assessment and different types of leave.
The Federal Civil Service Act, which is being introduced after years of federalism implementation, is expected to have a significant impact on Nepal’s administrative structure and civil service management.
However, as the bill will go through parliamentary discussions and amendments, the provisions currently proposed could still be revised before the legislation is finalized.
