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Civil service bill heads to Parliament, easing retirement concerns

Proposed 30-year service limit and retirement at 55 could force more than 13,500 employees to retire while creating opportunities for younger entrants.
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By REPUBLICA

KATHMANDU, Sept 29: The government is preparing to table the Federal Civil Service Bill in Parliament, easing concerns among civil servants that an ordinance could abruptly deprive them of benefits accrued under the existing law.



A Cabinet meeting on Tuesday authorized the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration to submit the bill to Parliament, government spokesperson Sasmit Pokharel said.


The proposed legislation introduces a 30-year service limit and lowers the retirement age from 58 to 55. Its implementation could lead to the compulsory retirement of more than 13,500 employees, including serving secretaries, joint secretaries, undersecretaries and other civil servants.


For employees approaching retirement, however, the bill offers some reassurance. According to a ministry official, employees over 55 would retain the service benefits available under the existing law, which sets the retirement age at 58, despite the proposed lower age limit.


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Employees who have completed more than 30 years of service or crossed the age of 55 will have time to consider their options, including whether to resign after receiving their Dashain bonus or continue under the new provisions.


The government’s decision has eased concerns that employees could suddenly lose benefits already accrued under the existing Civil Service Act, officials said.


The Public Service Commission (PSC) returned its recommendations on the draft bill on September 24, cautioning that lowering the retirement age to 55 should not deprive employees of benefits guaranteed under the existing law.


The commission reportedly raised no objections to other key provisions, including the 30-year service limit, a three-year tenure for secretaries and a two-year cooling-off period before retired civil servants can take up other appointments.


New opportunities for younger employees


While the proposed changes could push thousands of experienced civil servants into retirement, some government officials see the move as an opportunity to renew the bureaucracy and expand career prospects for younger entrants.


“Reducing the retirement age from 58 to 55 and introducing a 30-year service limit will create vacancies for younger people,” a government joint secretary said.


Officials also said the bill seeks to address longstanding shortcomings in promotion practices, including automatic promotions under Section 24(D) of the existing law and the promotion of computer operators to administrative officer positions.


Although public debate has largely focused on the proposed “30–55” limits, officials expect broader discussions once the bill reaches Parliament.


The legislation will now face parliamentary scrutiny, with its retirement provisions, safeguards for accrued benefits and proposed reforms to civil service promotions likely to draw close attention.

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