Nepal’s long-awaited Federal Civil Service Bill has been registered in the House of Representatives, beginning the formal parliamentary process for a law intended to provide a legal framework for the country’s federal civil service.

The bill was registered as Bill No. 35 by Minister for Land Management, Cooperatives, Federal Affairs and General Administration Pratibha Rawal. The Federal Parliament’s official record lists it as the Federal Civil Service Bill, 2083.

The legislation comes more than a decade after Nepal adopted federalism. It proposes changes covering recruitment, promotion, retirement, pensions, inclusion, transfers, performance assessment and coordination among federal, provincial and local administrations.

Parliamentary process begins

Registration does not mean the bill has become law.

The Federal Parliament record currently lists the bill as registered, with no entries yet for general discussion, committee consideration, passage by the House or authentication.

According to reporting by The Kathmandu Post, the bill was registered shortly before the current parliamentary session was scheduled to conclude. Under House procedures, substantive consideration is therefore expected in a subsequent session.

Once parliamentary discussions begin, lawmakers can debate the provisions and propose amendments before the legislation moves through the required stages in both houses.

Retirement age proposed at 60

One of the most closely watched provisions concerns retirement.

The bill proposes increasing the normal mandatory retirement age for civil servants from 58 to 60. However, it also contains a one-time transitional provision under which existing employees who have reached 55 years of age or completed 30 years of service when the law takes effect would retire.

The government has revised the proposal to protect pension benefits for employees affected by the transitional provision. According to officials involved in drafting the legislation, employees retiring before 58 would not lose pension benefits they would otherwise have received under the existing system.

The provision has nevertheless drawn concern because of its potential effect on experienced officials.

According to figures cited by The Kathmandu Post, 39 of Nepal’s 53 serving secretaries would be affected by the 55-year-or-30-year provision, along with hundreds of joint secretaries, under-secretaries and section officers.

Former Public Service Commission chairman Umesh Mainali and former chief secretary Lilamani Poudyal have raised concerns about the fairness of the transitional retirement rule and the possible loss of institutional experience. These are their assessments, not findings established by the bill itself.

Changes to senior bureaucratic positions

The proposed legislation would also alter the terms of senior officials.

The chief secretary would have a two-year tenure, while secretaries would have a three-year tenure. The bill therefore combines fixed terms with the proposed retirement framework for senior positions.

The proposal also introduces a new level-based structure for the civil service, extending from assistant-level positions to officer level 14.

Lateral entry proposed for specialised positions

Another significant provision would allow lateral entry into specialised executive or expert positions.

Where suitable expertise is unavailable within the civil service, the government could appoint an external candidate for a fixed period after consulting the Public Service Commission.

The government would establish rules covering qualifications, selection procedures, performance contracts, service conditions and benefits.

Supporters of the provision may view it as a mechanism for bringing specialised expertise into government, while critics cited by The Kathmandu Post have expressed concerns about its possible effect on career progression within the permanent civil service.

Inclusion quota would rise to 49 percent

The bill proposes increasing the share of posts reserved under Nepal’s inclusive recruitment system from 45 percent to 49 percent of positions filled through open competition.

Half of the 49 percent quota would be reserved for women, with the women's allocation divided among designated groups. The remaining half would be distributed among other inclusion categories.

The proposed system would also be reviewed every 10 years.

Framework for provincial and local services

The bill seeks to establish a clearer legal relationship between the federal civil service and administrative structures at the provincial and local levels.

Provincial civil services would include positions up to officer level 12. Provincial ministry secretaries would be provincial civil servants, while the principal secretary of each province would remain part of the federal civil service and be assigned by the federal government.

Local services would be established under provincial legislation, with their structures and conditions governed by the respective provinces.

The provisions are intended to address an administrative gap that has persisted since Nepal moved to a federal system.

Two-year cooling-off period

The bill also proposes a two-year cooling-off period for senior civil servants after retirement or resignation.

Officials leaving gazetted special-class or first-class positions would be restricted for two years from taking certain constitutional, diplomatic or government appointments. The proposal would also restrict specified employment or consultancy arrangements involving organisations connected to the sectors in which the officials worked.

The bill additionally introduces provisions dealing with conflicts of interest, transfers between provinces, leadership assessment and other aspects of civil service management.

What happens next?

The bill is now part of the parliamentary legislative process and is not yet an Act.

The government says the proposed law is intended to make the civil service more professional, accountable, effective and results-oriented. Parliament will now have the opportunity to examine the provisions, hear different views and consider amendments before any final decision on the legislation.

After passage by both houses, the bill would need presidential authentication before becoming law.

The legislation therefore marks an important procedural step toward establishing Nepal’s long-awaited federal civil service framework, while several provisions—including retirement, pensions, lateral entry and inclusion—are likely to receive significant attention during parliamentary deliberations.