KATHMANDU, June 18: The government has prepared a draft of the new Federal Civil Service Bill that proposes sweeping reforms, including the introduction of lateral entry at senior levels and mandatory retirement for thousands of employees. According to officials, the draft envisions allowing external recruitment into key positions such as secretary and joint secretary for a fixed tenure, a move that has already stirred debate within the bureaucracy.
The draft, prepared by the Ministry of Land Management, Cooperatives, and Federal Affairs, has been forwarded to the Ministry of Law, Justice, and Parliamentary Affairs for review. Federal Affairs Secretary Madan Bhujel confirmed that once the law ministry agrees, the proposal will proceed to the Public Service Commission and eventually to the Cabinet for approval.
One of the most significant provisions is the mandatory retirement of civil servants who have either reached 55 years of age or completed 30 years of service. If endorsed, this measure would create a large number of vacancies across the bureaucracy. The draft also introduces a provision for lateral entry, enabling the government to appoint qualified experts from outside the civil service to specialized positions. Sources said this arrangement could apply to any sector requiring technical expertise.
Officials argue that the reform is necessary to make the civil service more effective, service-oriented, and results-driven. A joint secretary at the Federal Affairs Ministry explained: “If the government is advancing projects like monorail in Kathmandu, would a secretary recruited through the Public Service Commission be more effective, or someone with specialized academic and professional experience in transport systems? The lack of subject-specific expertise has delayed projects such as tunnels and bridges for years.”
Reserved cluster in NC proposed for lateral entry of distinguis...
He added that lateral entry would be limited to a fixed tenure and governed by a clear procedure. “Railway projects cannot be managed by general civil servants alone. Even now, train drivers have to be recruited externally. That is why lateral entry is essential,” he said.
Who will retire?
The proposed mandatory retirement provision is expected to affect a large segment of the bureaucracy. Out of the 65 secretaries currently in service, 52 will retire, leaving only 13 in office. Similarly, among joint secretaries, 180 will retire upon reaching the age of 55, while another 88 will leave after completing 30 years of service, vacating nearly half of the 610 sanctioned positions.
The impact will also be significant at the under-secretary level, with 501 retiring at 55 years of age and 259 upon completing 30 years of service. At the section officer level, 560 will retire due to age and 363 due to service length.
The assistant-level staff will be most affected, with 2,154 retiring at 55 years and 1,947 after 30 years of service. Altogether, nearly 13,000 employees would retire under the proposed provision, creating widespread vacancies across the civil service.
The draft further states that after this one-time provision, the retirement age will be set at 60 years.
Financial Implications
Government officials estimate that retiring 15,000–20,000 employees simultaneously would cost around Rs 25 billion. This is because, under existing laws, the government must provide retirement benefits including medical allowances, accumulated leave payments, and other entitlements. Each employee would receive between Rs 2 million and Rs 2.5 million in benefits.
