(1) According to this Act, the salary and other facilities of employees adjusted and assigned to the service of the provincial and local levels shall be provided by the relevant province or local level.

(2) Notwithstanding anything written in sub-section (1), if a government employee who has been adjusted or assigned to the service of the province or local level in accordance with this Act is separated from the service for any reason, the amount of gratuity, pension, medical expenses, accrued leave that he is entitled to shall be borne by the Government of Nepal. When such amount is provided, it will be provided in a manner not less than or more than the facilities available to the employees of the same rank or level of the federal civil service.

However, no facilities under this sub-section shall be provided to the employees who have been dismissed from service due to being deemed ineligible for government service in the future.

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(3) In accordance with this Act, the provisions regarding the benefits that employees who have been adjusted from other services to state or local level service upon retirement shall be in accordance with the law of the relevant level. While enacting the law in this way, provision should be made that the facility under the law existing at the time of appointment of such employee will not be adversely affected.