Title: High Level Salary Facilitation Commission Recommends Minimum Salary of Government Employees to be Rs. 35,000
The High Level Salary Facilitation Commission has recommended that the minimum salary of government employees be raised to Rs. 35,000. The commission, led by former Chief Secretary Lilamani Paudyal, submitted its report to Prime Minister Pushpa Kamal Dahal Prachanda on 20 Falgun 2079. Here is a breakdown of the commission's recommendations:
Minimum Salary Determined by Livelihood Requirements:
The commission has determined the minimum salary for government employees based on the minimum amount required for livelihood. According to a report provided by the commission's secretariat source, the lowest level employee would need Rs. 34,651 to earn a living in the Kathmandu Valley. The commission arrived at this figure by conducting a family budget survey conducted by Nepal Rastra Bank in 2071, which estimated the minimum livelihood of a family (a family of four) to be Rs. 28,449. The commission added the annual price increase to reach the current figure.
Salary for Chief Secretary:
The commission has recommended a salary of Rs. 122,500 for the Chief Secretary. With this recommendation, the difference between the minimum and maximum salary will be three and a half times.
Other Benefits:
The commission has recommended that employee salaries should include the monthly salary, employee provident fund addition, lunch allowance, transportation allowance, educational allowance, and the amount deposited in the medical treatment fund. Additionally, the commission has suggested that Rs. 2 million for officers and Rs. 1.5 million for gazetted and unranked employees should be included in life insurance and employee welfare fund. The commission has also proposed house rent from 9 percent to at least 4.5 percent of the salary allowance.
Health Treatment Guarantee:
To ensure that employees and their families receive proper health treatment, the commission has suggested that the money currently arranged for treatment be canceled, and that leave should not be accumulated by giving money instead of accrued and sick leave. Instead, the commission recommends that employees receive a certain amount of money when they retire.
Impact on Salary Ratio:
If the commission's recommendations are implemented, the salary of the lowest paid office assistant will reach Rs. 35,000, which is an increase from the current minimum salary of Rs. 26,082. The salary of the Chief Secretary will increase from the current basic salary of Rs. 77,211 to Rs. 1,22,500. However, the Pay Commission has also suggested that a certain percentage should be deducted for early retirement to discourage the trend of taking pension by resigning while still active.
Overall, High Level Salary Facilitation Commission's report has recommended significant changes to the salary and benefits of government employees in Nepal. The commission believes that the current salary ratio between lower and upper level employees is the lowest in Nepal among South Asian countries, and has recommended a higher salary ratio for secretaries and chief secretaries. The report also suggests that the financial burden on civil servants will increase by 66 billion rupees if the recommendations are fully implemented.
Published on 24th April 2023
