Sat, Sep 12, 2026 11:56 PM Nepal Time Kathmandu, Nepal
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Government Ends Contracts of Pension-Receiving Retirees, Creates Pool System for Other Contract Employees

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Summary:

Nepal has decided to discontinue contract employment from Shrawan 1, 2083 for former government employees already receiving pensions or gratuity, while placing other existing contract staff in a centralized pool for possible deployment against approved vacancies.

The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has circulated a Cabinet decision on the management of employees working on contract against approved government positions. Under the decision taken on Asar 32, 2083, any contract employee who previously retired from government service and has received a gratuity or is receiving a pension must not be continued in service from Shrawan 1, 2083, and the existing contract must be terminated.

After removing employees covered by that provision, other currently serving contract staff are to remain under contract with their respective agencies but be placed in an employee pool until further arrangements are made. The ministry will maintain a consolidated record of these workers. Once an agency’s Organization and Management (O&M) Survey is approved, it may deploy employees from the pool according to need. Newly established agencies or offices needing contract workers for vacant approved posts are instructed to seek suitable workers from this pool through the ministry rather than immediately recruiting new personnel.

For agencies undergoing merger or closure, the relevant ministry may retain only the minimum number of existing contract staff needed temporarily to protect assets, maintain security and complete the transfer of property and liabilities. The Ministry of Finance will arrange the necessary salary and allowance funding for such employees upon request from the concerned line ministry.

The decision also directs the federal administration ministry to complete a one-month study on contract employees who remain in the pool. The study must recommend arrangements for their future management, minimum employment conditions and benefits that should be included in future contract agreements, and the benefits or safeguards to be provided when contracts of existing workers cannot be continued against approved posts.

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