(1) The civil servant will get salary and allowance from the day of resuming his post.
(1a) To review the salaries, allowances and other benefits of the civil servants, there will be a Salary and Allowance Review Committee as follows –
(a) Chief Secretary to the Government of Nepal – Chairman
(b) Secretary, Ministry of Finance – Member (c) Secretary, Ministry of General Administration – Member
(1b) Salary Allowance Review Committee will determine the dearness allowance based on the consumer price list and recommend it to the Government of Nepal every year. The committee will review the salary allowance and other benefits based on the revenue growth rate, the total number of posts and the dearness allowance provided on the basis of the price list in the last three years every three years. The committee can decide other procedures by itself.
(1c) The committee according to sub-section (1a) may form sub-committees as per the need and may invite experts or stakeholders in the relevant field to take suggestions.
(1d) The secretariat of the committee under sub-section (1a) will be done by the Ministry of General Administration.
(2) Based on the recommendation of the committee under sub-section (1a), the Government of Nepal may provide an amount up to seventy-five percent of the consumer price list that increases every year as an allowance to the civil servants every year. If the amount of allowance provided is twenty-five percent or more of the starting salary scale, twenty-five percent of the amount may be adjusted to the salary scale and the remaining amount may be provided as allowance.
(3) Except in the case mentioned in Section 29 or 60, after the commencement of this Act, every civil servant shall receive a salary increase of the prescribed amount after completing one year of service. However, when the salary increase is determined in this way, the number of salary increase will be matched so that the amount paid by the concerned employees does not decrease. In case of suspension of salary increase of a civil servant, the concerned authority should state in writing the date from which the salary increase will be released.