KATHMANDU, July 6: More civil servants have opted for voluntary resignation than mandatory retirement since June 15, a trend officials say has been driven largely by concerns over proposed changes to Nepal's federal civil service law that could affect pension benefits.
According to the Department of National Personnel Records (Civil), 146 civil servants resigned voluntarily between June 15 and July 6, while 142 retired under mandatory retirement during the same period.
"The number of employees opting for voluntary resignation has exceeded those retiring compulsorily since June 15," said Sudan Shrestha, spokesperson for the department.
Nepal witnessed a similar pattern eight years ago when the government implemented employee adjustment under the federal structure. In fiscal year 2018/19, around 3,500 civil servants resigned after refusing to be adjusted to the federal, provincial or local governments.
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Under normal circumstances, around 700 civil servants resign voluntarily each year, while between 2,200 and 2,300 retire through mandatory retirement during a fiscal year.
Officials say the recent surge in resignations follows the government's plan to introduce the Federal Civil Service Act, which proposes mandatory retirement for civil servants upon reaching the age of 55 or completing 30 years of service.
The draft law also proposes capping pensionable service at 30 years. Officials say many long-serving employees have chosen to resign before the new law comes into force to avoid any reduction in their pension benefits.
According to the department, employees ranging from joint secretaries and under secretaries to section officers and non-gazetted first-class officers have submitted their resignations.
Sources said the wave of resignations has put additional pressure on pension processing, as many departing employees have already initiated their pension claims.
Not all resignations, however, are linked to pension concerns.
According to sources, some employees resigned after expressing dissatisfaction with recent transfer decisions. Lower-level civil servants, in particular, were reportedly unhappy after being transferred from Kathmandu and other accessible postings to remote districts in Sudurpashchim Province and the Himalayan region.
Sources also said that some civil servants have remained on extended leave following the recent change in government.
Meanwhile, the government has forwarded the draft Federal Civil Service Act to the Ministry of Law, Justice and Parliamentary Affairs after obtaining approval from the Ministry of Finance.
The draft, which proposes mandatory retirement at age 55 or after 30 years of service, will be sent to the Public Service Commission after receiving clearance from the Ministry of Law, Justice and Parliamentary Affairs. Following the commission's approval, it will be presented to the Cabinet.
