KATHMANDU, May 18: The Parliamentary State Affairs Committee has passed the draft of the Federal Civil Service Act, which proposes raising the retirement age for civil servants from 58 to 60 years in two phases—adding one year at a time. The existing Civil Service Act of 2049 BS currently sets the retirement age at 58.
A senior official at the Public Service Commission (PSC) warned that the new act, once implemented, could block at least 2,500 new appointments in the first year. Over the past ten years, the commission has typically announced 5,000 to 5,300 vacancies annually, with around 4,000 young individuals entering government service each year.
The PSC had advised the State Affairs Committee to increase the retirement age in four phases—by six months at a time—arguing that raising it directly from 58 to 60 years could halt new recruitment for up to two years.
The PSC made this recommendation to avoid disadvantaging young applicants who are nearing the upper age limit to sit for civil service exams. However, due to pressure from senior civil servants—particularly the Chief Secretary, secretaries, and joint secretaries—who are nearing retirement under the current 58-year limit, members of the State Affairs Committee proposed increasing the age limit in two phases by one year each, eventually raising it to 60 years.
PSC spokesperson Geeta Kumari Homegai said the PSC recommended that the State Affairs Committee increase the retirement age from 58 to 60 years in four phases—by six months each. She warned that raising the retirement age in just two phases could disrupt the new recruitment process. "We still need to review the impact of this decision based on government demand at the time and the consequences once the Act is passed," she added.
Under the current law, a secretary must retire either upon reaching the age of 58 or after completing five years of service as secretary—whichever comes first. Similarly, a chief secretary must retire at 58 or after completing three years in the role, whichever occurs earlier.
Parliamentary panel agrees to increase mandatory retirement age...
The law enforces whichever condition is met first. The draft Act passed by the State Affairs Committee is likely to benefit secretaries who are nearing 58 but have not completed five years in office, and chief secretaries who are approaching 58 but have yet to serve three full years in the role.
Who stands to benefit?
Chief Secretary Ek Narayan Aryal, who took office in Bhadra 2081 BS (mid-August to mid-September 2024), must retire on Mangsir 9 (November 25, 2025) this year under the current law, as he will reach the age limit of 58. The age cap prevents him from completing a full three-year term. However, if the State Affairs Committee passes the Federal Civil Service Act by the end of Asar (mid-July), Aryal will retain his position for another year.
The draft Act, which the State Affairs Committee has approved, proposes raising the retirement age to 60 in two phases, starting from the next fiscal year once Parliament endorses it. If Parliament does not pass the Act by mid-July, Aryal will lose the opportunity to benefit from the one-year extension.
Similarly, if parliament passes the Federal Civil Service Act by mid-July, Energy Secretary Suresh Acharya and Physical Infrastructure Secretary Keshav Sharma will benefit from the extended retirement age. Under the current law, Sharma must retire in Chaitra 2082 BS (mid-March to mid-April 2026) and Acharya in Bhadra 2082 BS (mid-August to mid-September) upon reaching the age limit.
The provision will also benefit several other secretaries, including Youth and Sports Secretary Hari Lamsal, Prime Minister's Office Secretary Phanindra Gautam, and Vice President's Office Secretary Loknath Paudel.
The draft Act sets a two-year tenure for the Chief Secretary and a four-year tenure for other secretaries, but this new rule will not apply retroactively to current officials. The existing law allows the Chief Secretary to serve for three years and other secretaries for five years.
If the Act comes into effect, it will limit the Chief Secretary's tenure to two years and the secretaries' tenure to four years. This arrangement will benefit deputy secretaries who are about to be promoted to secretary by giving them earlier promotion opportunities.
Similarly, secretaries on the verge of promotion to Chief Secretary will also benefit from this provision. However, this rule will not apply to current secretaries and chief secretaries. Ramhari Khatiwada, Chairperson of the State Affairs Committee, explained that although the draft Federal Civil Service Act sets the tenure of secretaries and chief secretaries at four and two years, respectively, the rule will apply only to new appointees, not to current officials.
Khatiwada said, "Current secretaries and chief secretaries will follow the old rules regarding tenure and retirement age. After the Federal Civil Service Act is ratified, new secretaries and chief secretaries will follow the four-year and two-year tenure rules."
Why did the State Affairs Committee set the cooling period at two years?
The draft Federal Civil Service Act requires retired government employees to wait at least two years before accepting a new appointment. This waiting period is called the cooling period. Earlier, UML lawmakers proposed a one-year cooling period, while Nepali Congress lawmakers recommended two years. Ultimately, the State Affairs Committee decided to set the cooling period at two years.
An expert argues that the government should have completely prohibited reappointing retired employees. He says this approach would have created more opportunities for others and ended the practice of the same individuals repeatedly occupying positions.
He recommends that the Federal Civil Service Act allow retired employees to be appointed only in positions where their expertise is essential, such as the PSC, Staff College, and Administrative Court, but ban their appointment in other areas.
