Investor Presentaiton
2. Existing Pension System in Nepal
• Coverage: Covers only government employees and public enterprises.
(Civil servant, Nepal Army, Nepal armed police force and Nepal police, Government
Teachers, University Professors & some government public enterprises)
• Non Contributory and non Funded, Defined benefits (DB)
(Entire Pension expenses is charged to government revenue or concerned PES
on cash basis.)
• Eligibility for Pension: 20 years or more service government employees.
16 to 20 years for Nepal Police and Army, 20 years for Armed Police
Force (Retirement age: 58 years in case of civil service, 30 years regular
employment in case of police and army, 60 years in case of schools teachers,
63 years in case of university professors, 65 yeas in case of officials of
constitutional bodies and 55 years as per Labour Act.)
• If not entitled to pension, gratuity will be paid.
• Termination on disciplinary ground, no pension is paid.
• The retirement age is 58 to 65 years.(Could take voluntary retirement
After Service Period 16 to 20 in army and police)
• Pension Calculation:
Pension = Total service years X Last take home salary
50
(for lower level employee of military and police divided by 40).
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