Nepal Federal Civil Service Bill faces uncertainty over retirement rules

Uncertainty surrounds the fate of Nepal’s Federal Civil Service Bill as the current parliamentary session nears its end. The legislation, which is considered vital for implementing the country’s federal structure, faces debate over whether it will be passed through Parliament or introduced via an ordinance.

A major point of contention is the proposed “55–30” rule, which would mandate compulsory retirement for civil servants upon reaching age 55 or completing 30 years of service. The Public Service Commission (PSC) has formally submitted its opinion to the government, objecting to this retirement provision and related pension changes. The PSC concluded that the one-time retirement rule is inconsistent with the Constitution and existing national and international practices.

While the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has stated that the process is moving forward as a bill, some officials suggest that preparations for an ordinance may be underway. If an ordinance is used, the PSC’s recommendations would not be binding, a prospect opposed by several senior government officials.