Resource Constraints Halt Salary Hike: FM Paudel

But, government hikes civil servants’ monthly dearness allowance to Rs 5,000

Sunil Sharma/NBA

The government has opted not to increase the salaries of civil servants, citing resource constraints. However, it has raised the monthly dearness allowance by Rs 3,000, bringing the total to Rs 5,000.

Presenting the budget for the upcoming fiscal year 2025/26 in a joint session of the Federal Parliament on Thursday, May 29, Deputy Prime Minister and Finance Minister Bishnu Paudel said although there is a clear need to adjust civil servant compensation in line with current economic realities, fiscal pressures made a salary hike unfeasible.

“While the necessity of revising benefits and remuneration is well understood, the burden on resource management has prevented us from increasing salaries as anticipated,” Paudel said. “Nonetheless, beginning mid-July 2025, the monthly inflation allowance for all civil servants will be raised to Rs 5,000.”

Click  here  to see out budget 2025/26 coverage.

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