The government has drafted a Federal Civil Service Bill that proposes raising the retirement age in the civil service to 60 years, while lowering the upper age limit for civil service entry to 32 years for men and 35 years for women. At present, the retirement age is 58. The current upper age limit for Public Service Commission examinations is 35 years for men and 40 years for women.

The draft bill was prepared in response to a long-standing demand for a federal civil service law, considered essential to the effective implementation of federalism. Although similar bills were introduced in both the 2017 and 2022 sessions of the House of Representatives, neither was enacted into law.

During a meeting called by Prime Minister Balendra Shah on April 16, chief ministers urged the federal government to expedite the civil service law. The constitution envisions provincial civil services, but provinces have been unable to establish their own in the absence of enabling federal legislation.

The Ministry of Federal Affairs and General Administration has prepared the draft bill. The government’s action plan, announced on March 27, the day Shah assumed office, set a 45-day deadline for drafting the federal civil service law. The ministry completed the draft within one month.

The bill introduces structural reforms aimed at aligning the administrative system with federalism. Minister Pratibha Rawal said the proposal focuses on building a competency-based civil service, where appointments to departmental heads, office heads and administrative leadership positions will be based on merit and performance indicators.

Chapter 12 of the draft outlines provisions on intergovernmental administrative relations. It establishes civil services in each province and defines the roles of provincial chief secretaries, provincial secretaries and local service mechanisms. It also sets standards for provincial and local service laws, along with provisions for the management and adjustment of transferred employees.

The draft also states that federal employees deputed or adjusted under federal arrangements will be managed under specific transitional provisions, aimed at strengthening coordination in federal administration.

A previous version of the bill was tabled in the House of Representatives on March 4, 2024. After extended deliberation in the State Affairs and Good Governance Committee, the House passed it on June 29, 2025, and forwarded it to the National Assembly. The National Assembly passed the bill on September 2 and sent it back to the House for final endorsement. However, the dissolution of the House following the Gen Z protests caused the bill to lapse, along with 30 other pending bills.

Since the promulgation of the constitution, provincial governments formed after the November 2017 elections have repeatedly demanded such legislation. Although the bill was previously tabled, it was withdrawn due to a lack of consensus between the government and parliament.

This marks the fourth attempt to introduce a federal civil service law since the constitution was promulgated.

According to the draft, provincial civil services will include posts up to the 12th level, equivalent to the senior joint secretary rank. Levels 11 and 12 will fall under the gazetted first-class category. For the next five years, the federal government will deploy staff up to the 12th level in provinces, after which provinces will take over responsibility for managing these positions independently. Provincial secretaries will be appointed from the 12th-level civil service.

The post of provincial chief secretary will be filled by a 13th-level official, equivalent to the gazetted special class. Transfers of chief secretaries will require provincial consent and cannot be made before completion of one year in office. Chief secretaries will remain administratively accountable to provincial governments.

Each province will have its own local service structure. Employees already serving in local bodies will be considered part of the local service system. Metropolitan and sub-metropolitan cities will have staff up to the 11th level, municipalities up to the 10th level, and rural municipalities up to the 9th level.

For the first five years after the law comes into force, the federal government will continue assigning chief administrative officers to local levels. These officers will be centrally deployed to the offices of chief ministers and councils of ministers, which will handle their postings to local governments. This marks a shift from the current system, where the federal government directly posts administrative officers to local units.

The minister said the bill is designed to ensure effective implementation of federal governance by clarifying roles, responsibilities and coordination mechanisms across the three tiers of government. It is expected to address long-standing issues related to employee adjustment, administrative coordination and service delivery.

The draft proposes a two-year tenure for secretaries and the chief secretary. It also abolishes the long-standing system of employee trade unions, in place for nearly 35 years. The government argues that trade unions have been influenced by partisan interests and that their removal will help professionalise the civil service and ensure political neutrality.

Joint Secretary Ek Dev Ahikiari, an official involved in drafting the bill, said alternative mechanisms have been included to safeguard employee interests. Officials added that the decision to remove trade unions was based on an assessment of past distortions in the system and was taken with consensus among officials and stakeholders.

The draft introduces provisions for open or lateral entry into executive and specialised positions, including posts at the secretary level. It allows the government to appoint external candidates based on performance-based assessments or functional evaluations.

Both tenure-based and rank-based structures will continue under the proposed system. The tenure for secretaries (13th level) and the chief secretary (14th level) will be two years. The government may extend a secretary’s tenure by up to one year based on performance, at its discretion. The draft also stipulates that reservation benefits may be used only once at the non-gazetted level and once at the gazetted level per individual.

A central record system will be used to verify reservation eligibility before recruitment by the Public Service Commission.

The bill also bars civil servants from teaching in PSC preparatory classes. A cooling-off period of two years has been retained. Retired or resigned senior officials will not be eligible for appointment to constitutional, diplomatic or other government positions within two years of leaving service.

The draft further strengthens conflict of interest provisions, explicitly prohibiting civil servants from engaging in any activity that may create personal, family, professional or financial conflicts.

Performance evaluation will be strictly results-based, incorporating institutional outcomes and service delivery indicators. Feedback from service recipients will carry weight in performance scoring. A dedicated ethics unit will conduct profiling and grading of employees.

Evaluation will shift from a three-tier system to a two-tier system, based on agreements between supervisors and employees. A three-member evaluation committee comprising senior officials will oversee assessments.

Employees who refuse postings in remote areas or decline assignments as chief administrative officers at local levels will not be eligible for promotion consideration. Ministry officials said the provision aims to curb the tendency among civil servants to avoid such postings in local governments.

Civil servants will be prohibited from engaging in political activity. Membership in political parties or affiliated organisations will result in dismissal and permanent ineligibility for government service.

A Civil Service Board will be established to ensure accountability in the transfer, posting and career management of civil servants up to the under secretary level. Minimum tenure requirements for postings will be strictly enforced.

Transfer processes will be fully digitised. Employees will be required to report to their assigned offices within seven days of transfer.

Inter-ministerial transfers will be restricted unless minimum service periods are completed: three years for gazetted second and third-class officers, and four years for assistant-level staff. No employee will be allowed to remain in the same post and office for more than four years.

A rotational system will be introduced to ensure exposure to policy formulation, implementation and service delivery roles. Annual inter-ministerial transfers will be capped at 30 percent.

Employees with specialised qualifications from recognised universities or research institutions will be prioritised in relevant technical fields.