KATHMANDU, Aug 3: Prime Minister and ministers in Nepal now have the authority to determine their own salaries through a decision of the cabinet, following the endorsement of an amended law.
President Ram Chandra Paudel authenticated the “Bill to Amend Some Nepal Acts” on July 29, allowing the cabinet to fix the remuneration and benefits of the Prime Minister, Deputy Prime Ministers and other ministers. This change modifies the 1992 (2049 BS) Act on the Remuneration and Facilities of Ministers, which previously specified fixed salaries and allowances.
Under the older version of the law, the monthly salary for the Prime Minister was set at Rs 9,000, with lesser amounts designated for other ministers. However, the newly revised act no longer specifies exact figures. Instead, it states that the government shall fix and publish remuneration through the Nepal Gazette.
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With this amendment, the government is no longer required to rely on the “Directive on Government Operations” to revise benefits and salaries. Previously, any changes in ministers’ salaries were made through this directive, last revised on February 4, 2021.
Current salaries and allowances
As per the 2077 directive, the Prime Minister currently draws a monthly salary of Rs 94,280, which includes basic salary Rs 77,280, dearness allowance Rs 2,000, communication allowance Rs 5,00 and hospitality allowance Rs 10,000.
In addition, the PM receives 306 liters of petrol per month, 40 liters of mobil oil annually, daily travel allowances (Rs 3,000 when outside Kathmandu) and support staff totaling 34 employees.
The Deputy Prime Minister earns a monthly salary of Rs 75,640, which rises to Rs 84,640 including other allowances. They also receive 306 liters of petrol monthly and are supported by a team of eight staff.
Cabinet Ministers receive Rs 79,230, which includes hospitality and other allowances. They are also entitled to 207 liters of petrol per month and seven support staff. State Ministers earn Rs 75,030 monthly, receive 200 liters of petrol, and have a team of seven staff members.
The legal amendment means future revisions of salaries and benefits will be done via cabinet decisions and made official through publication in the Nepal Gazette.