The government has announced an increase in the salaries of public-sector employees in the federal budget for fiscal year 2083/84, with minimum pay ranging from Rs 40,000 to Rs 1 lakh, inclusive of grades.

Presenting the budget to a joint session of the Federal Parliament, Finance Minister Dr. Swarnim Wagle said the revised pay scale would apply across the government workforce, including civil servants, army and police personnel, and teachers. The adjustment factors in grade-based increments alongside the new minimum thresholds.

The salary revision is expected to offer relief to government employees amid rising living costs, though it also adds to the recurrent expenditure burden at a time when the state is contending with weak revenue collection and mounting obligations.

The measure forms part of the reform-focused budget brought by the Rashtriya Swatantra Party-led government, which has placed human capital development and institutional strengthening among its guiding priorities.