KATHMANDU, May 29: The government has announced a significant increase in the salaries of public sector employees, marking one of the key decisions in the federal budget for the upcoming fiscal year 2026/27.
Presenting the budget for FY 2026/27, Finance Minister Dr Swarnim Wagle said the salaries of government employees will be increased by 21 percent, effective from the next fiscal year. He, however, clarified that the existing dearness allowance will remain unchanged.
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With the revision, the minimum monthly salary of government employees is expected to reach around Rs 40,000, while the highest pay scale will exceed Rs 100,000.
The decision is likely to have broad implications for the government’s wage bill as well as public sector morale at a time when inflationary pressures and cost-of-living concerns remain key economic challenges.
