The government has decided not to increase the salaries of civil servants in the upcoming fiscal year 2025–26, citing a lack of financial resources. Presenting the national budget in Parliament on Thursday, Finance Minister Bishnu Paudel announced that while base salaries will remain unchanged, the monthly dearness allowance has been increased.

Effective from the start of the new fiscal year on July 17, government employees will receive a revised dearness allowance of Rs5,000 per month. Currently, employees receive Rs2,000 monthly under this provision.

Paudel stated that the decision reflects the government’s commitment to provide some relief from inflation, even amid tight budgetary constraints. However, he clarified that the financial situation does not permit a revision of basic pay scales this year.

In addition to the monthly allowance, civil servants continue to receive an annual clothing allowance of Rs10,000.

The last salary increment for civil servants was implemented in fiscal year 2023-24 under then finance minister Janardan Sharma, when salaries were raised by 15 percent.