Government employees in Nepal will now be paid their salaries every 15 days, departing from the traditional monthly payment system. This decision, made at the Finance Minister level on April 17, aims to inject money into the economy more frequently by adopting a fortnightly payment schedule. While this practice is uncommon globally, Nepal seeks to boost economic activity by enhancing cash flow for its employees.
In most countries worldwide, government employees typically receive their salaries on a monthly basis, unlike the new bi-weekly arrangement in Nepal. The move is seen as a potential stimulus for economic growth, as more frequent payments could lead to increased spending and circulation of money within the economy. The decision has been communicated through a circular to relevant government agencies for implementation.
The implementation timeline for this new payment system remains uncertain, as legal adjustments may be necessary due to existing regulations mandating monthly salary disbursements. The Financial Comptroller General Office (FCGO) in Nepal, responsible for salary payments, is technically prepared to execute the change but acknowledges the need for potential legal amendments. Discussions are ongoing on how to navigate the legal requirements to expedite the implementation of the government’s decision.
