Sat, Sep 12, 2026 8:42 AM Nepal Time Kathmandu, Nepal
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Government Orders Performance-Based Evaluation System for Public Employees, Introduces KPIs and Improvement Plans

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Summary:

Nepal has directed public agencies to link employee evaluations to measurable job descriptions, Key Performance Indicators (KPIs), annual targets and quarterly reviews, while rewarding strong performers and placing weak performers under Performance Improvement Plans.

The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has instructed ministries, provincial governments, local levels and other public bodies to implement a performance-based employee evaluation system. The directive follows a government-approved governance reform action plan, which calls for employee performance to be linked more directly with measurable results and seeks to end the practice of treating strong and weak performance in the same manner. Each public body is expected to define objective performance indicators for individual positions based on updated job descriptions.

Under the system, every office must establish measurable KPIs for each position and align them with its annual programme, expected institutional results and targets. Job descriptions, KPIs, annual programmes and targets should be approved by the immediate supervisor or higher authority. Employees entering a performance agreement must clearly state their performance goals, expected outputs, deadlines and evaluation criteria, providing a documented basis for assessing whether assigned responsibilities have been achieved.

Performance must be reviewed every three months, with offices documenting progress against targets, problems encountered, solutions and other relevant findings. These quarterly assessments will feed into the employee’s annual performance evaluation. The system is intended to make evaluations more evidence-based and outcome-oriented rather than relying largely on subjective assessments.

Employees demonstrating outstanding performance should receive priority for rewards, incentives, training and leadership-development opportunities. Employees whose performance remains consistently weak must instead be placed under a Performance Improvement Plan (PIP) and given structured opportunities to improve. The ministry has asked public bodies to make the necessary arrangements to apply the system in practice.

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