Kathmandu- The government has increased the salaries of civil servants by approximately 21 percent.

Finance Minister Dr. Swarnim Wagle announced the hike while presenting the budget for the upcoming fiscal year 2083/84 (2026/027) before a joint session of the Federal Parliament.

The Finance Minister informed that the salaries of government employees had not been raised for the past four years. Given that the consumer price index-based inflation surged by 17.3 percent during this period, the government felt it was essential to review remuneration benefits to ensure a dignified standard of living for employees.

According to the minister, the existing dearness allowance will be continued, while a 10 percent salary increment has been applied to the initial pay scale. Furthermore, to initiate a performance-based remuneration system, an additional 10 percent monthly incentive allowance based on the new pay scale has been introduced.

With these adjustments, current net take-home salaries will see a total increase of around 21 percent. Including increments (grades), the minimum salary will range from approximately 40,000 rupees to over 100,000 rupees.

The new salary scale is slated to come into effect from Shrawan 1, 2083 B.S. (July 17, 2026).