Sat, Sep 12, 2026 9:49 AM Nepal Time Kathmandu, Nepal
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Health Ministry Introduces KPI-Based Employee Evaluation With Quarterly Reviews and Performance Improvement Plans

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Summary:

Nepal’s Ministry of Health and Food Safety has directed all subordinate institutions to implement a results-based employee evaluation system linking job descriptions, measurable performance indicators, annual targets, quarterly reviews and rewards or improvement measures.

The Ministry of Health and Food Safety has instructed all institutions under it to introduce a performance-based evaluation system aimed at linking employee performance directly with measurable results. The directive follows the government’s wider administrative reform initiative, under which public bodies are required to prepare updated Job Descriptions and Key Performance Indicators (KPIs) for each position and move away from treating strong and weak performance in the same manner.

Under the framework, every public institution must establish measurable performance indicators based on the duties of each post and align them with its annual work plan, institutional objectives and expected results. Performance agreements are to be made between employees and their supervisors, specifying targets, expected achievements, timelines and evaluation criteria. The system is intended to make individual accountability clearer and ensure that staff performance contributes directly to institutional outcomes.

Employee performance will be reviewed every three months, with progress against targets, problems, solutions and other initiatives documented. These periodic assessments will form the basis for marks awarded in the annual performance evaluation. Employees demonstrating outstanding results are to receive priority for rewards, incentives, training and leadership-development opportunities.

The directive also requires institutions to identify employees with consistently weak performance and introduce a Performance Improvement Plan (PIP) to strengthen their capabilities. The Health Ministry has asked its subordinate bodies to implement the system in accordance with the detailed federal guidelines, making staff evaluation more objective, measurable and results-oriented.

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