KATHMANDU, April 13: The government is preparing to introduce the long-pending Federal Civil Service Act through an ordinance, aiming to fast-track a key law that became defunct following the dissolution of the House of Representatives (HoR).
The Federal Civil Service Bill was passed by the National Assembly on September 2 and sent to the HoR. However, the dissolution of the HoR on September 12 rendered the bill void, pushing the process back to square one.
Reviving the bill through the regular parliamentary route—passing it again from both the HoR and the National Assembly and sending it to the President’s Office for authentication—would take at least five to six months. The timeline could stretch even further if the bill is referred to the State Affairs Committee for clause-by-clause deliberations. Against this backdrop, the government is now preparing to bring the law into force through an ordinance, according to a source at the Office of the Prime Minister and Council of Ministers.
The ordinance is being drafted based on the version endorsed by the National Assembly, with some revisions. A dedicated team at the Prime Minister’s Office is currently working on the draft, the source said.
Trade unions to be scrapped
The proposed ordinance seeks to overhaul existing provisions on employee unions. It removes the current system that allows civil servants to form unions and organisations affiliated with political parties. Instead, it proposes a single official trade union, with its powers curtailed as well. The existing Civil Service Act, 1993, permits multiple unions with political affiliations.
Bill bars local units from recruiting civil servants
Tenure limits and downsizing
The ordinance also proposes a significant downsizing of the federal bureaucracy. The total number of positions at the federal level is capped at 30,000, down from the current figure of around 52,000.
To support this reduction, tenure limits are being introduced: 10 years for joint secretaries, three years for secretaries, and two years for the chief secretary. If enforced, this could trigger the automatic retirement of a large number of senior officials. Joint secretaries who complete 10 years in the post will be retired automatically, with their positions gradually phased out.
At present, there is no fixed tenure for joint secretaries, while secretaries serve for five years and the chief secretary for three.
Cooling-off period retained
The ordinance is set to retain the “cooling-off period” provision for civil servants. This provision had been revised while the bill moved from the HoR to the National Assembly and was endorsed by the latter on September 2.
The bill was originally registered in the HoR on March 4, 2024, and passed on June 29, 2025, before being sent to the National Assembly. There, it was referred to the Legislative Management Committee for clause-by-clause discussion. Following committee approval, the bill was presented and passed by the National Assembly.
Under existing provisions, the National Assembly can correct errors in bills passed by the HoR. Accordingly, it retained the cooling-off period by amending the earlier version.
Retirement age unchanged—for now
The ordinance is unlikely to raise the retirement age. Discussions are ongoing on retaining the current retirement age of 58 years while also introducing a 30-year service limit—whichever is reached first. However, no final decision has been made.
Earlier, the HoR had proposed increasing the retirement age from 58 to 60 years, to be implemented in phases: 58 years in the first year, 59 in the second, and 60 in the third. This provision was endorsed by the National Assembly without changes.
Key revisions by National Assembly
The National Assembly introduced revisions to the bill on several key issues, including the provision for an additional secretary, open competition for joint secretary positions, and open recruitment at the level of Non-Gazetted First Class.
While the HoR had included a provision for an additional secretary, the National Assembly removed it.
