KATHMANDU: Finance Minister Swarnim Wagle has clarified that the salary increase announced for government employees effectively amounts to 21 percent.
Speaking at an interaction programme with journalists at the Ministry of Finance on Sunday, Wagle dismissed concerns that the government had overstated the pay raise.
“The salary increase is indeed 21 percent. There should be no doubt about that. I have seen comments suggesting that the government misled people, but that is not the case,” he said.
According to the minister, the increase consists of a 10 percent rise in the basic salary along with an additional 10 percent component linked to a performance-related incentive mechanism.
He explained that while all employees will initially receive the additional amount, future reforms could make the incentive adjustable and more closely tied to individual performance.
“Once reforms are implemented, the incentive allowance will become a genuine performance-based benefit,” Wagle said.
The finance minister also confirmed that the existing monthly inflation allowance of Rs 5,000 provided to government employees will remain unchanged.
The government announced the salary adjustment as part of the budget for the fiscal year 2083/84, which was unveiled in the Federal Parliament on Friday.
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