The Ministry of Federal Affairs and General Administration has submitted a draft of the bill on Federal Civil Service to the Cabinet by retaining the retirement age at 58 years.
Although the Finance Ministry had suggested increasing the age to 60 years considering the rising burden of pension payment for retired employees and the increased life expectancy of Nepalis, the General Administration Ministry (MoFAGA) kept the retirement age unchanged.
According to the Civil Service Act, a government official retires compulsorily in 58 years. After drafting the bill, the MoFAGA had sent it to the Ministry of Finance and the Ministry of Law, Justice and Parliamentary Affairs for their opinions. Law Ministry officials said they had no suggestion on the retirement age.
The Finance Ministry had argued that increasing the age would check the ever-growing pension liability that reached Rs40.14 billion last fiscal year. The amount accounts for nearly a third of salary and allowances received by serving government staffers in the period.