Understanding Nepal’s Federal Civil Service Bill: A Closer Look at the Administrative Overhaul

May 18, 2025
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KATHMANDU: In what is being described as a landmark decision for Nepal’s bureaucracy, the Federal Civil Service Bill has finally cleared the State Affairs and Good Governance Committee of the House of Representatives after an exhaustive 14-month legislative journey.

Registered on Falgun 21, 2080 B.S. (March 4, 2024), the bill is now set for a final review in the House of Representatives, carrying with it a slew of structural reforms aimed at enhancing administrative efficiency, ensuring gender inclusivity, and redefining career pathways within the civil service.

The journey to endorsement was far from smooth. Lawmakers submitted a staggering 1,583 amendment proposals in 124 groups, reflecting sharp political divisions and differing visions for the future of civil service in the federal structure.

Each proposal was scrutinized, debated, and reworked in what insiders described as one of the most thorough legislative processes in recent memory. “This bill represents a new chapter for our civil service—one that is more aligned with federalism and the needs of a modern administrative framework,” said a member of the committee.

Gradual shift to 60-year retirement age: One of the flagship provisions of the bill is the extension of the retirement age to 60 years. Initially, the government had pushed for an immediate implementation of this change. However, concerns over recruitment bottlenecks led to a phased approach: 58 for the first year, 59 the second, and finally 60 in the third year. This gradual shift, recommended by the Public Service Commission, is expected to maintain workforce fluidity and prevent stagnation at the top levels.

Political debates around the retirement age were particularly intense. Lawmakers from opposition parties argued that extending the retirement age would limit job opportunities for younger applicants, potentially creating frustrations among job seekers. Meanwhile, supporters of the extension claimed it would retain experienced officials during a crucial phase of Nepal’s federal transition. The compromise, according to a lawmaker, was “a balanced path forward that both preserves experience and allows for gradual recruitment.”

Two-year cooling period to prevent political patronage: Another cornerstone of the bill is the two-year cooling period for senior civil servants. This provision bars top-level officials from taking up roles in diplomatic, constitutional, or political offices for two years after retirement. Initially, the CPN-UML lobbied for a one-year period, while Nepali Congress and Maoist Centre backed two years, citing the need to reduce political influence over key bureaucratic appointments. The consensus ultimately landed on two years; a decision widely seen as a check against political patronage.

Critics argued that this cooling-off period might deter skilled civil servants from re-engaging in public service roles, but supporters countered that it would enhance political neutrality in sensitive appointments. “It’s a necessary firewall to protect the integrity of the civil service,” remarked a political analyst.

Gender inclusivity and entry age adjustments: Breaking with long-standing norms, the bill lowers the entry age for women from 40 to 39 years. This slight adjustment aims to balance the career span required for pension eligibility.

Lawmakers reasoned that entering service at 40 made it nearly impossible for women to serve the 20 years necessary for a pension, given the previous retirement age of 58. “This change is about equity,” said a member of the drafting committee. “Women should not be at a disadvantage when it comes to serving their country.”

First-ever inter-province transfers: For the first time in Nepal’s civil service history, the bill authorizes inter-province transfers. Local-level employees can now request one transfer across provincial borders during their careers. This provision is designed to ease jurisdictional disputes and improve governance at the grassroots level.

Lawmakers argued that the inability to transfer across provinces had created administrative bottlenecks, particularly in newly formed local governments. “It’s a step towards true federalism,” said a lawmaker. “Inter-province mobility ensures that talent is not trapped in one region.”

Structural reshuffling and revival of the Additional Secretary: A notable comeback in the bill is the revival of the Additional Secretary post, which was abolished in 2059 B.S. due to administrative overlaps. Now reinstated as the 13th tier, the Additional Secretary is expected to bridge gaps between policy formation and execution.

This restructuring also brings changes to tenure: Chief Secretaries will now serve two years instead of three, and Secretaries will serve four years instead of five. These adjustments are anticipated to inject fresh perspectives into governance, a move praised by governance reform advocates.

Ending open competition for Joint Secretary: The bill eliminates open competition for Joint Secretary positions, making them exclusively available through internal promotions. While some critics argue this narrows opportunities for fresh talent, proponents claim it will strengthen career progression for dedicated civil servants. “This is about valuing experience and dedication,” noted a civil service reform advocate. “Internal promotion means recognizing years of service.”

Legalizing internal tourism leave: In an unexpected but widely praised addition, the bill legally formalizes Internal Tourism Leave. Previously, this leave was regulated informally, but it is now codified into law, allowing civil servants to explore Nepal’s diverse landscapes during their service. Lawmakers believe this not only encourages tourism but also strengthens the connection civil servants have with local communities.

Trade unions and contested rights: Despite significant debate, the bill retains trade union rights for civil servants. RPP lawmaker Buddhi Man Tamang registered a note of dissent, arguing against trade unions’ role in civil service. However, the majority opinion was to retain the provision, reflecting a continued commitment to collective bargaining rights.

Road ahead: The bill now heads to the House of Representatives for final approval before moving to the National Assembly. If it clears both stages, the Speaker’s certification and the President’s authentication will bring it into law, reshaping Nepal’s civil service landscape.

Observers say this legislative overhaul marks a turning point in Nepal’s governance, with a focus on federalism, gender inclusivity, and decentralized administration. “This is not just a reform—it’s a reimagining of how governance works in a federal Nepal,” remarked a political analyst.

If endorsed, the Federal Civil Service Bill could redefine public administration for decades to come, setting new standards for efficiency, inclusivity, and political neutrality in the country’s bureaucratic machinery.