KATHMANDU, June 9: A proposal to retire civil servants at the age of 55 or after completing 30 years of service has triggered intense debate and anxiety across Nepal’s bureaucracy after the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration forwarded a draft Federal Civil Service Act to the Ministry of Law, Justice and Parliamentary Affairs (MoLJPA).
The proposal has become the subject of discussion and criticism in government offices nationwide. The draft seeks a one-time mandatory retirement scheme for employees who have either reached the age of 55 or completed 30 years in service.
If endorsed and enacted, civil servants meeting either of these criteria would be compulsorily retired. Following this one-time measure, the retirement age for civil servants would be set at 60 years, according to the draft.
“The proposal aims to retire between 10,000 and 15,000 employees in a single phase by applying the 55-year age limit or 30-year service threshold. After that, the retirement age for the younger generation of civil servants would be fixed at 60,” a source at the ministry said. “In line with the new government's vision, the idea is to phase out the older generation within the bureaucracy and make room for younger employees.”
Ministry spokesperson Ekdev Adhikari confirmed that the draft Act was sent to the MoLJPA on May 25.
However, he declined to comment on the proposed retirement provisions.
“The draft was sent in a highly confidential manner. I am not aware of the specific provisions included in it,” Adhikari said.
A senior ministry official, however, revealed that the proposal initially sought mandatory retirement only for employees who met both conditions—55 years of age and 30 years of service. The draft was later revised to include either criterion.
330 civil servants file writ petition against adjustment ordina...
“This means that whichever condition an employee reaches first—55 years of age or 30 years of service—they would be required to retire,” the official explained.
Government preparing to bring law through ordinance
According to ministry sources, the government is considering introducing the law through an ordinance rather than waiting for Parliament to pass the bill.
“Passing the bill through Parliament would take time. The Public Service Commission’s consent would also be required. Senior officials at the commission are not enthusiastic about the proposal to retire employees at 55 or after 30 years of service,” a source said. “The parliamentary process is lengthy. Therefore, the government plans to end the current session immediately after the budget bill is passed and introduce the law through an ordinance.”
The source added that the government wants to reduce the civil service workforce by 15,000 to 20,000 employees at once through the ordinance.
“The ordinance is expected before the new fiscal year begins so that those affected by the measure will not be entitled to the revised salary scale. This would help the state save at least some resources,” the source said.
Immediate financial burden of Rs 25 billion
The proposed mass retirement plan could place an immediate financial burden of around Rs 25 billion on the government.
Under existing laws, employees sent into mandatory retirement are entitled to benefits, including medical allowances and compensation for accumulated leave. Officials estimate that each employee would receive between Rs 2 million and Rs 2.5 million in retirement benefits.
“As many as 15,000 to 20,000 employees could be affected, requiring the government to allocate roughly Rs 25 billion,” a source said.
The same source claimed that the Ministry of Finance has already agreed in principle to provide the required budget, making the proposal highly likely to move forward.
The positions vacated through mandatory retirement would also be eliminated, meaning no new employees would be recruited to fill them. According to ministry estimates, this could reduce the total number of civil service positions at the federal level to between 30,000 and 35,000.
Who will be affected?
If implemented, the proposal is expected to hit senior officials—particularly secretaries and joint secretaries—the hardest.
Only around 15 or 16 secretaries would remain in service, according to officials.
Among the nine technical secretaries currently serving, only Bishwo Babu Pudasaini and Sarita Dawadi would remain, while the rest would retire under the proposed criteria.
There are currently 71 secretary-level positions in the civil service, five of which are vacant. Of the serving secretaries, 32 have already crossed the age of 55 and would be forced to retire. Likewise, 20 secretaries who have completed 30 years of service would also leave under the proposed arrangement.
Employees unhappy with proposal
Civil servants have reacted negatively to the proposed retirement provision, arguing that it should not be implemented under any circumstances.
Officials have reportedly begun lobbying at multiple levels to block the proposal.
“One of the most controversial aspects is that the original draft sent by the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration did not include the provision to retire employees at 55 or after 30 years of service,” a joint secretary claimed. “The clause was reportedly inserted by the Ministry of Law at the insistence of the law minister. It is difficult to understand why the government wants to send experienced employees home.”
The official warned that the measure would create a shortage of experienced personnel, particularly in technical services, and could ultimately weaken government performance and service delivery.
Another senior civil servant said he has already begun preparing himself mentally for compulsory retirement if the proposal becomes law.
