Government Hesitant on Salary Increases Amid Silent Trade Unions and Burden of Two-Thirds Majority

The relationship between public administration and politics in Nepal has always been fluctuating. While political leadership changes, it is the civil service – the ‘permanent government’ – that ensures continuity of state machinery and delivers services to citizens’ homes. However, this permanent government is currently facing serious disappointment, economic hardship, and an identity crisis. Civil servants have not received any salary increases for four years.

With consumer price indexes setting new monthly records, the livelihoods and daily lives of those steering governance and administration are being squeezed.

Recent political and legal developments—especially the formation of a powerful two-thirds majority government, restrictions on trade unions, and the Supreme Court’s interim order—coupled with the silence of these unions, raise questions about the future direction of employee administration. Will there be salary increases after four years, or will the status quo persist? This question concerns not only millions of employees but also the future of good governance, corruption control, and federal implementation in the country.

Mockery of the Civil Service Act and Legal Obligations

When discussing a legal state, it is necessary to examine whether the state itself complies with the laws it creates. Section 27 (1kh) of the Civil Service Act 2049 clearly stipulates the formation of a Salary Review Committee, chaired by the Government Secretary, which must reassess salaries and allowances every three years based on revenue growth, total sanctioned posts, and consumer price indices over the past three years.

This is not merely a moral appeal but a legal obligation. Although the government increased salaries by 15 percent in the fiscal year 2079/80 budget, this mechanism has since become defunct.

Failing to implement the required salary review after four years is a clear violation of the law. Even high-level salary recommendation commissions have submitted minimum wage reports that remain pending in Singha Durbar.

Soaring Inflation and Depleted Pockets

Economic data from the past three to four years indicate that Nepal’s average annual consumer price inflation has hovered around 6 percent. Over four years, prices for goods and services have risen by 20 to 24 percent. With stagnant incomes, employees’ purchasing power has declined by about 25 percent.

Lower- and middle-level civil servants (such as Subba or Kharidar) can no longer sustain the modern, expensive urban lifestyle. Their salaries often get exhausted on rent, children’s school fees, gas, food, and healthcare before the month ends.

The government’s recent policy to disburse half the salary every 15 days has somewhat eased cash flow but does not address the fundamental inadequacy. The key issue remains whether the total amount suffices to cover monthly expenses.

The Vicious Cycle of Corruption Control and Low Wages

Good governance and a corruption-free society are main objectives of the current government. However, expecting good governance while keeping employees hungry or under economic distress is futile. International studies show that corruption in public service arises not solely from moral decay but also from economic insecurity and survival struggles.

When the state fails to provide fair wages aligned with market rates, employees become more vulnerable to unethical or illegal practices such as bribery and revenue leakage.

Conversely, providing employees with adequate salaries and social security boosts morale and diminishes tendencies toward corruption. Therefore, salary increases should be viewed not as unproductive expenditure but as the primary, effective investment in maintaining good governance and curbing corruption.

Goals and Leadership Challenges of the Two-Thirds Majority Government

Currently, the country has a strong government with a two-thirds majority formed through cooperation among main parties. This government has a significant opportunity to establish political stability and lead the country toward economic prosperity, with priorities including promoting good governance, financial discipline, and public service reform.

However, dissatisfaction and disillusionment within the civil administration—the key service delivery mechanism—raise doubts about achieving these goals. A demoralized civil service cannot effectively implement political plans and reforms with enthusiasm. For the two-thirds government to genuinely energize and deliver results to citizens, addressing civil servants’ just demands in the upcoming budget is essential.

Supreme Court Orders and Trade Unions’ Silence

Recently, the government issued an ordinance amending the Civil Service Act to abolish official trade union provisions and close offices, which was widely seen as an attempt to suppress collective employee rights. The Nepal Civil Servants Organization challenged this through a writ petition, and the Supreme Court issued an interim order restraining the government from enforcing this decision immediately.

The Supreme Court reinforced constitutional protections for association freedom under Article 17 and trade union rights under Article 34. Yet, trade unions have remained silent. Once vigorously mobilizing for salary increases in protests and parliamentary pressure, why have unions adopted a quiet, wait-and-see stance now?

Whether salaries will increase after a prolonged freeze depends on the government’s political will and attitude. The two-thirds government can no longer ignore legal provisions citing resource constraints or economic downturns.

There are two main reasons for the unions’ silence: first, political pressure and fear—union leaders hesitate to confront the government given its two-thirds majority. Second, partisan affiliations—as most unions operate like party-affiliated groups, they are reluctant to mount aggressive opposition against their own party-led government. Consequently, unions are playing a passive role, suppressing employee voices.

Ironically, with a powerful two-thirds government, there is no excuse to disregard legal provisions or jeopardize civil servants’ livelihoods.

If Nepal truly aims for good governance, corruption control, and a dynamic permanent government, the following steps are imperative in the next budget:

Substantial Salary Increase

Basic salaries, unchanged for four years, must be raised by at least 25 to 30 percent to offset inflation and restore purchasing power.

Elimination of Wasteful Expenditures

The government has already reduced ministries from 22 to 18 and plans to cut around 25,000 posts. Savings must be redirected from unproductive allowances and political appointments to employee benefits.

Result-Oriented Administration

Trade unions should be reformed from political arenas into professional, performance-based organizations through legal changes.

The civil service must be strong and content; otherwise, the country’s path to prosperity will be blocked. Instead of becoming entangled in publicity and technical disputes, the two-thirds government must empower the permanent government with economic justice and security. Empty pockets under white aprons or formal attire cannot sustain good governance for long.

(Author: Shahi, Civil Servant Working in Dolpa, Karnali Province)