All civil servants appointed on or after July 17—the start of fiscal year 2025/26—will be covered under a contribution-based social security system, which would replace the traditional pension and gratuity schemes.
The Ministry of Finance on Friday, July 4, issued a circular directing all ministries, regulatory bodies, public institutions, boards, committees, and establishments to make necessary arrangements to implement the contribution-based system.
The ministry also clarified that the government will not bear any liability resulting from failure to enforce the new provisions.
Currently, two laws govern social security provisions: the Contribution-Based Social Security Act, 2017 for employees in formal private and informal sectors; and the Pension Fund Act, 2018 for civil servants.
The contribution-based Social Security Fund, launched in 2018 for formal private sector workers, has since been expanded to cover Nepali migrant workers, informal sector workers, and self-employed individuals.
