Process Begins for Salary Increase of President, Prime Minister, and Other Senior Officials

Summary: The government has announced a 10 percent increase in the basic salaries of civil servants as part of the budget speech. Finance Minister Dr. Swarnim Wagle informed that the 10 percent performance-based incentive allowance and the existing NPR 5,000 cost-of-living allowance will continue. The Ministry of Finance is preparing to present a proposal to the cabinet soon regarding the salary hike of distinguished and constitutional officeholders. Kathmandu, 31 May – On Friday, the government declared an increase in salaries for civil servants during the budget speech. Finance Minister Dr. Swarnim Wagle, while delivering the budget speech, stated that the basic salary of employees will be raised by 10 percent. He added, “I have introduced a new salary structure with a 10 percent monthly incentive allowance based on a performance-based reward system.” According to the budget speech, the current cost-of-living allowance of NPR 5,000 will also continue. Alongside civil servants, other public service staff and personnel are also likely to receive salary increases proportional to those of civil servants. This is expected for the Nepal Police, Armed Police Force, Nepal Army, teachers, and employees of public institutions.

The government is preparing to publicly disclose detailed information related to the basic salaries and other benefits of all public officeholders within a few days. However, there is still no clarity on how the salaries of constitutional officials such as the President, Vice President, Prime Minister, Speaker, Chief Justice, and provincial-level officials will be managed. Since there are separate laws governing the remuneration and benefits of distinguished individuals, adjustments will be required accordingly. There are distinct legal provisions for the facilities of the President and Vice President, while different laws govern the salaries and benefits of parliamentary officials and judges. These laws specify the principles of the benefits and the procedures for updating them. Ministry of Finance spokesperson Amrit Lamsal revealed that a proposal on the salaries and benefits of distinguished and other elected officeholders will soon be submitted to the cabinet. He stated, “The cabinet will make decisions based on the proposal sent from the Ministry of Finance within the next few days, after which an official notification will be published in the gazette.”

According to him, in the past, salary increases for employees were typically followed by proportional raises for constitutional officials, but since this process has not yet started this time, it remains uncertain how much and in what manner their remuneration will increase. Elected officials at the local government level, including chiefs and deputies, do not receive regular salaries but are provided various facilities instead. Even ward chairpersons and members do not receive fixed remuneration. Therefore, after salary hikes for employees, it is customary to update the allowances and benefits for entities occupying public offices.

Potential Salaries and Benefits for Constitutional Officeholders: In addition to salaries, the President, Vice President, Prime Minister, ministers, federal parliament officials, and judges receive various allowances and facilities that are not included in their pay. The President and Vice President are provided with official residences, vehicles, fuel, hospitality, medical expenses, and a private secretariat. The remuneration and benefits act for ministers grants the Prime Minister and ministers equal facilities, including uniform allowances. Federal parliament officials receive electricity, water, and communication facilities beyond their salary and meeting allowances. They obtain various benefits according to their positions. The Chief Justice and other judges are also entitled to various allowances and facilities beyond their salaries. Judges who rent accommodations receive an annual allowance equivalent to half a month’s home maintenance costs. During foreign visits, these officials receive special allowances, which include an additional 50 percent travel allowance.