Balen Shah’s gift to Nepalese government employees; To get salary twice a month; Here’s the reason, why
Most countries in the world do not have such a system.
Government employees typically receive their salaries only once a month.
New Delhi: Government employees in Nepal will now receive their salaries every 15 days, thereby breaking the long-standing tradition of receiving a paycheck only once a month. According to a decision taken at the Finance Minister level on April 17, government employees will henceforth be paid on a fortnightly basis (twice a month). To implement this decision, a circular has already been issued to the relevant government offices.
Why was the Twice-a-month Salary System Implemented in Nepal?
Most countries in the world do not have such a system; government employees typically receive their salaries only once a month. This is the prevailing arrangement across South Asia in countries such as India, Pakistan, Bangladesh, Bhutan, Sri Lanka, and the Maldives. Officials within the Nepal government state that this decision was taken to provide a modest boost to the economy. They believe that if employees receive money more frequently, their spending will increase, thereby ensuring a continuous flow of funds within the market.
"Technically, we face no difficulties in implementing this. We can disburse salaries to the Civil Service, the Nepal Army, the Police, the Armed Police Force, and all other government employees at any time," said Deepak Lamichhane, Spokesperson, Office of the Financial Comptroller General.
Changes to be Made to Nepal's Service Act
It is not yet clear exactly when this decision will come into effect. However, officials noted that implementing this change may require legislative amendments, as Nepal's Civil Service Act currently stipulates that salaries be paid on a monthly basis. According to Section 28 of the Act, every government employee is entitled to receive their salary and allowances at the end of each month.
Nepal Government Preparing to Promulgate an Ordinance
Deepak Lamichhane, spokesperson for Nepal's Office of the Financial Comptroller General, stated, "It is possible that a mechanism can be devised to expedite the implementation of this decision." Since the parliamentary session is currently not in progress, the government can immediately implement this decision by promulgating an ordinance. He further added that they are currently discussing the modalities for implementing this decision.
What did Nepal say Regarding The New Salary System?
Nepalese officials state that the objective of this move is to ensure a timely cash flow for employees, while simultaneously encouraging more regular spending within the economy. They also believe that this could help alleviate the financial pressure on middle-class employees, who often face difficulties in meeting their expenses towards the end of the month.
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