Nepal’s Ministry of Finance has instructed public institutions, authorities, boards, corporations and committees to revise the salaries and grades of their employees in line with the new pay scale approved for civil servants and other government employees. According to the ministry’s circular, the Cabinet approved the revised salary scale, grade, technical grade and incentive allowance on 2083/04/06, with the changes taking effect from Shrawan 1, 2083 (2083/04/01).

Under the directive, institutions must determine new salary scales according to employees’ rank, level and position in line with the government-approved pay structure. For employees already receiving incentive-type allowances, any additional incentive will be limited to the amount necessary to bring their allowance up to the government-approved level. The ministry has also directed that incentive allowances gradually be linked to performance indicators.

The circular further states that an employee’s existing grade rate should be revised only when it is lower than the new grade rate applicable to the civil service, in which case it may be brought up to the equivalent level. Importantly, public institutions have been barred from increasing any other allowances or facilities that would create additional financial liabilities without prior consent from the Finance Ministry.

The ministry said the detailed list of revised salary scales, grades and technical grades approved by the Cabinet is available through the Finance Ministry’s website. The circular, issued by the ministry’s Financial Sector Management and Corporation Coordination Division, carries the certified digital signature of Section Officer Narendra Kumar Karki.