In a notable shift in its public payroll system, the Government of Nepal has decided that government employees will now receive their salaries on a fortnightly basis instead of the traditional monthly cycle. The decision, taken at the Finance Minister level on April 17, marks a structural change in how public sector wages are disbursed across the country.

According to official communications, the Finance Ministry has already issued a circular instructing relevant government agencies to implement the new system. Under the revised arrangement, salaries will be paid every 15 days, effectively introducing a bi-weekly payment cycle for civil servants, security personnel, and other government employees.

Officials said the move is aimed at improving economic activity by increasing liquidity in the hands of employees more frequently. Policymakers believe that shorter salary intervals could encourage higher consumer spending and help stimulate regular cash flow in the economy. The decision reflects an attempt to use payroll reform as a tool for broader economic revitalisation.

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However, the implementation timeline remains uncertain. The Financial Comptroller General Office (FCGO), which handles salary disbursement, said it is technically prepared to execute the new system. Spokesperson Dipak Lamichhane stated that salaries for civil servants, security forces including the Nepal Army, Nepal Police, and Armed Police Force, can be released at any time once procedural clarity is established.

Despite administrative readiness, legal hurdles remain. Nepal’s Civil Service Act currently stipulates that salaries and allowances are to be paid on a monthly basis, raising questions about whether statutory amendments are required before the new system can be fully enforced. Officials indicated that the government may consider an ordinance route if immediate implementation is pursued, as the federal parliament is not currently in session.

Discussions are ongoing within the government on how to proceed, with officials weighing both legal and administrative pathways. While the policy has been announced, its rollout will depend on resolving these procedural challenges in the coming weeks.

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