KATHMANDU: The government has formally launched a system to pay civil servants every 15 days.
According to the Ministry of Finance, the system has been introduced as a pilot project from Sunday.
Finance Minister Dr. Swarnim Wagle inaugurated the semi-monthly salary distribution system at a program held at the ministry.
The system has been implemented through the Office of the Financial Comptroller General using the Computerized Government Accounting System (CGAS), which sends payment orders to the treasury and accounts offices.
With the rollout, employees at the Ministry of Finance have received their salaries for the first 15 days of the Nepali month of Baisakh (mid-April to mid-May).
Speaking on the occasion, Minister Wagle expressed confidence that the system would boost market liquidity and strengthen consumption and demand. He said the scheme, currently limited to federal civil servants, will be gradually expanded to all government-paid employees.
Also speaking on the occasion, Financial Comptroller General Shobhakanta Poudel said the office is fully prepared to expand the system to provincial and other government services in phases.
According to him, the system allows salaries to be paid either every 15 days or a month, as required.
The semi-monthly model is expected to create more regular demand in the market, improve cash flow for small businesses, and have positive effects on the service sector and the digital economy.
Minister Wagle took a formal decision on April 17 to implement the 15-day salary payment system as a pilot project.

Himal Press