Key Provisions of the Federal Civil Service Bill
Kathmandu, May 29 — The government is preparing to introduce a one-time provision in the Federal Civil Service Bill that would mandate the retirement of civil servants who are either 55 years old or have completed 30 years of service. This measure is intended to streamline the civil service and enhance administrative efficiency.
Previously, an earlier draft of the bill proposed a uniform retirement age of 60 years without any service-based conditions. However, the revised version introduces this one-time provision, which will apply only at the time the law comes into force. Once this transitional arrangement is implemented, the retirement age will be set at 60 years for all civil servants.
According to ministry sources, the provision aims to reduce the number of civil servants by mandating their retirement. If implemented, it could result in the retirement of over 10,000 civil servants. Additionally, around 3,000 employees retire annually under the regular system, meaning the total reduction in workforce in a single year could be significantly higher.
The federal government has already reduced the number of ministries from 22 to 18 as part of an administrative restructuring, increasing pressure to reduce the number of employees across the civil service. Currently, there are 50,768 sanctioned civil service posts at the federal level, with 39,888 filled. Across federal, provincial, and local levels, a combined total of 85,240 civil servants is currently in service.
Current Workforce Distribution
Of these, 46.8% are in federal positions, 16.2% in provincial positions, and 37% in local government positions. The government has also begun organisational and management surveys across all levels of government to assess workload and determine future staffing requirements based on functional needs.
Ganesh Prasad Bhatta, joint secretary and spokesperson for the ministry, stated that the bill is still in the drafting stage and has been sent to the Ministry of Finance for review before being forwarded to the Ministry of Law for further scrutiny. He mentioned that he was not fully aware of the detailed provisions, as multiple officials were involved in preparing the draft.
The ministry had previously released a preliminary draft for public feedback on April 24, which did not include the 55-year or 30-year service-based retirement provision. That earlier draft proposed a uniform retirement age of 60 years for all civil servants.
Political Influence and Legal Challenges
Sources in the government indicated that the new retirement provision was added after instructions from the top political level. They also said the final shape of the law is still uncertain and may change during the review process involving multiple ministries and agencies.
The draft has been prepared by a task force comprising joint secretaries from the erstwhile Ministry of Federal Affairs and General Administration, the Office of the Prime Minister and Council of Ministers, the Ministry of Finance, and the Ministry of Law and Justice. After incorporating comments from the Ministry of Finance, the draft was sent to the Ministry of Law for legal vetting.
Law Secretary Parashwor Dhungana stated that they have yet to formally examine the draft and that it has been returned before further processing. He declined to comment specifically on the content of the bill, saying the ministry had not yet studied it in detail.
Three senior government officials, speaking to Kantipur on condition of anonymity, confirmed the inclusion of the retirement provisions based on age and service duration in the draft. One of them said that the bill would still undergo multiple stages of review and revision, and that it is not certain whether the provisions will remain unchanged before the bill is presented to Parliament.
Legislative Process and Implementation
The legislative process requires approval from the Council of Ministers, followed by review by the Public Service Commission, and then scrutiny by the parliamentary legislative committee before it is formally tabled in Parliament. Officials said the government is aiming to fast-track the bill under its 100-day roadmap, which includes presenting the Civil Service Bill within a short timeframe.
The Ministry of Federal Affairs has reportedly urged relevant officials to expedite the drafting and review process, even during holidays, for an early outcome. However, the Ministry of Law has reportedly asked for a more detailed and properly structured draft, including analytical justification and supporting regulations.
There is also disagreement among officials regarding the dual criteria for retirement. A law ministry official said it would be difficult to justify on grounds of legal fairness if employees who have completed 55 years of age or 30 years of service on the day the Act comes into force are compulsorily retired, while those who fall short even by a single day are allowed to remain in service until they turn 60.
“This has already entered discussions. It is too early to say in what form the provision will eventually come,” he said. “We will have to wait and see. Voluntary retirement models could also be considered a way to reduce the number of employees.”
However, sources said the Ministry of Finance appears unwilling to support a voluntary retirement scheme because it would place a huge immediate financial burden on the state.
Historical Precedent
The current administration appears to be attempting to follow a model similar to the one adopted in 1992 by the government led by Girija Prasad Koirala, which retired a large number of civil servants.
The Koirala government implemented the measure not through a new law but by amending the Civil Service Regulations. It used provisions contained in the Panchayat-era Civil Service Act and Regulations to introduce the compulsory retirement system through regulatory changes.
The Civil Service Act 1956 had authorised the government to frame rules governing recruitment and service conditions of civil servants. Relying on Section 7 of that Act, the Koirala government amended the regulations and changed the retirement provision.
At the time, the mandatory retirement age for civil servants was 60 years, and there was no service-duration threshold for retirement.
On November 6, 1992, the Koirala government introduced the 29th amendment to the Civil Service Regulations. The amendment revised the provisions relating to compulsory retirement.
The amended provision stated: “A civil servant shall be retired from government service after attaining the age of 58 years or upon completion of 30 years of service.”
In addition, the regulations also included a provision allowing the government to compulsorily retire any civil servant who had become eligible for pension benefits.
However, the government also made arrangements to protect pension entitlements. In cases of compulsory retirement, the remaining period until the employee reached the age of 60 was added to the total years of service for pension calculation purposes.
