KATHMANDU: Starting from the upcoming fiscal year 2082/83 (2025/26), newly appointed government employees will be enrolled in a contribution-based social security system instead of receiving traditional pension and gratuity benefits.

The Ministry of Finance issued a circular today to all ministries, regulatory bodies, public institutions, boards, committees, and establishments, instructing them to make necessary arrangements for implementing the contribution-based system.

The ministry has also clarified that the Government of Nepal will not bear any financial liability arising from failure to implement the contribution-based social security system.

Currently, two laws govern social security for employees and workers: the ‘Contribution-Based Social Security Act, 2074 (2017)’ for workers and other individuals, and the ‘Retirement Fund Act, 2075 (2018)’ for government employees.

The contribution-based system was introduced in 2075 (2018) under these legal frameworks.