KATHMANDU, May 29: In a major policy reversal, the government has raised the minimum age for receiving elderly allowance from 68 to 70 years, rolling back an election-era populist move.
Unveiling the budget for Fiscal Year (FY) 2025/26 at the Joint Session of the Federal Parliament on Thursday, Deputy Prime Minister and Finance Minister Bishnu Paudel announced that citizens will now qualify for the social security benefit only after reaching the age of 70.
Most parties led by those eligible for elderly allowance
The decision comes amid growing concerns over the fiscal burden caused by political parties’ race to outdo each other with generous welfare schemes. Officials say the previous threshold of 68—lowered ahead of the 2022 elections by the Sher Bahadur Deuba-led government—was fiscally unsustainable.
The High-Level Commission on Economic Reforms had also advised the government to restore the age limit to 70 to maintain economic discipline.
The move is expected to spark political debate but is being seen as a signal that the government is ready to take tough decisions to address long-term economic challenges.
