Civil servants will see a three percent salary increase starting from August 17, 2025, as part of the recently approved 2025-2026 budget by Parliament. This increment, as noted by Amenatave Yauvoli, Permanent Secretary for Civil Service, applies specifically to those appointed under Permanent Secretaries according to the Civil Service Regulations of 1999.
To facilitate this salary adjustment, the ministries will be responsible for issuing variance letters, coordinated through the Human Resource Management Information System (HRMIS). However, civil servants should also prepare for an initial hike in taxes following the implementation of this increase, which will be reflected across the existing civil service salary bands.
This adjustment is part of a broader fiscal strategy, which has seen a total increase in salary ranging from 10 to 23 percent over the past year, according to Deputy Prime Minister and Finance Minister Professor Biman Prasad. This increase aims to bolster the financial stability of civil servants amidst rising living costs. Prior to this increase, a previous raise of between seven to 20 percent was rolled out, contributing an estimated $115 million to household incomes, composed of $85 million from adjustments made previously and an additional $30 million from the current budget.
These efforts represent the government’s commitment to enhancing the economic well-being of civil servants and addressing cost of living challenges faced by the public sector. In conjunction with these salary increases, the government has also implemented measures such as tax relief and zero VAT on essential goods, which reflect a supportive strategy amidst ongoing economic pressures.
Enhancements in civil servant compensation are encouraging as they promise to not only uplift employees’ financial standing but also motivate a more engaged workforce dedicated to public service. The collective focus on improving compensation and public service delivery fosters a positive outlook for the future, suggesting a more resilient economic landscape for both civil servants and the larger community.
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