Chapter-6 Salary, allowance, festival expenses and other facilities
37. Salary and allowance :
(1) An employee shall be entitled to salary and allowance, if any receivable, from the day of assumption of his or
(2) The salary and allowances receivable by the employees for their service in the health service shall be as prescribed by the Government of Nepal from time to time.
(3) Except in the circumstances stipulated in Section 39 or 73, each employee shall be entitled to an increment in salary as prescribed, upon completion of One year of service. Provided that, in so prescribing the increment in salary, the number of increment in salary shall be adjusted in a manner that is not less than the amount being
received by the employee. In the event of release of withholding of increment in salary of any employee, the concerned official must mention in writing on which date the increment in salary is to be sanctioned.
38. Entitlement to earned salary and allowance :
(1) Each employee shall receive salary and allowance as well, if any receivable, upon completion of each month.
(2) Each employee shall receive his or her earned salary and allowance as well, if any receivable, even if he or she is relieved of the service for any reason whatsoever.
(3) Except as provided in this Act or the Rules framed hereunder, no salary of any employee shall be deducted.
(4) The salary to which any employee is entitled shall not be withheld during the period he or she is serving or is on leave.
39. Crossing of efficiency bar : No employee shall be deemed to have crossed the efficiency bar until the Secretary at the Ministry, in the case of an officer employee, and the Authority, in the case of an assistant
employee, mention in writing that such employee is eligible to cross the efficiency bar.
40. Salary receivable in the event of suspension :
(1) If any employee is suspended in connection with any governmental business or as a result of an action taken on behalf of the Government of Nepal, such employee shall receive only half of his salary during the period of such
Provided that, if the charge against him or her is not proved and he or she is acquitted of the charge, he or she shall receive the salary less the half salary, if any, he or she has received during the period of suspension and the full salary (including increment in salary, if any, to be made) and the festival expenses if he or she has not received the
half salary. If he or she is convicted, he or she shall not be entitled to the remaining salary from the date of such suspension.
(2) If any employee is suspended for any reason other than that mentioned in Sub-section (1), he or she shall not be entitled to any salary for the period of such suspension.
41. Deposit of contribution to Employee Provident Fund : An amount at the rate of Ten percent of the monthly salary of the employee
shall be deducted, and the Government of Nepal shall, adding the amount of One Hundred percent thereof to such amount, deposit the total amount in the Employee Provident Fund.
46 Festival expenses and other facilities :
(1) An employee of the health service shall, each year, receive an amount equivalent to the
salary of One month being earned by him or her as the festival expenses, for a festival which he or she observes according to his or her religion, culture and traditions.
(2) The employees who have retired with person shall receive an amount equivalent to the pension of one month being received by him or her as the festival expenses.
(3) The provisions relating to medical expenses, disability pension, facilities payable on grounds of deformities, extra-ordinary family pension and gratuity, educational allowances, children allowance, infant care allowance or other facilities to be receivable by the employees of the health service shall be as prescribed. Provisions relating to insurance facility :
(1) If an employee dies while in service, his or her near heir shall be provided with a lump sum of One Hundred Fifty Thousand Rupees for insurance.
(2) The Government of Nepal shall establish a fixed term (Sabadhik) life insurance fund. A sum of Two Hundred Rupees shall be deducted from the monthly salary of each employee and deposited in
that fund, and the Government of Nepal shall add the amount equal thereto and make the Twenty-year term life insurance for the insured sum of One Hundred Thousand Rupees. From the amounts deposited in
that insurance fund, the insured sum and bonus shall be paid to the employee at the time of his or her retirement.
(3) If any employee who has made deduction pursuant to Sub- section (2) takes compulsory retirement from the service prior to the completion of twenty years of service period, the following amount shall be provided to him or her:
(a) Ten Thousand Rupees in the event of deduction of amount for a period less than One year,
(b) Twenty Five Thousand Rupees in the event of deduction of amount for One year to Five years,
(c) Fifty Thousand Rupees in the event of deduction of amount for Five years to Ten years,
(d) Seventy Five Thousand Rupees in the event of deduction of amount for Ten years to Fifteen years,
(e) One Hundred Thousand Rupees in the event of deduction of amount for up to Twenty years,
Provided that, if the amount deposited by him or her and interest thereon, dividend exceeds the
said amount, the amount equivalent thereto shall be provided from the said fund.
(4) If any employee who has made deduction pursuant to Sub- section (2) takes retirement from the service for any reason whatsoever, except in the event of compulsory retirement or death of that employee prior to the completion of twenty years of service period, an amount equal to the surrender (Samarpan) value shall be provided to such an
(5) Notwithstanding anything contained in Sub-sections (2) or
(3), an employee retiring from the health service may give continuity in such a manner as to mature the amount deposited by him or her for the term life insurance within a period of Twenty years or less. Provided that, the Government of Nepal shall not bear any amount for the same.
(6) Other provisions relating to the term life insurance fund shall be as prescribed.
44. Special provisions on incapable employee : If the medical board formed by the Government of Nepal certifies that any employee is not capable because of a physical or mental disease to carry out functions
regularly, the Government of Nepal may retire him or her by adding a maximum service of Seven years to his or her service period.