Civil Servants' Salaries Stagnant for Four Years Amidst Union Struggles

Summary

Civil servants in Nepal have faced stagnant salaries for four years amid weakening trade unions and no salary increases since a 15 percent hike in fiscal year 2079/80. Inflation over the past three years has eroded purchasing power, while trade unions' influence continues to decline due to government actions.

Key Points
  • Civil servant salaries in Nepal have remained unchanged for four years since the 15 percent increase in fiscal year 2079/80.
  • Trade unions that traditionally advocated for employee benefits are currently weakened and struggling to bargain with the government.
  • Inflation averaging 5.93 percent annually over three years has decreased employees' purchasing power by approximately 18 percent.
  • The government recently increased only the dearness allowance temporarily, avoiding formal salary hikes and dissolved key trade unions, raising constitutional concerns.
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