The fourth Pay Commission (PC) does not recommend regularising contract employees. The report says the contract employees are recruited for time-bound projects and an urgent need for manpower in the public service. They are employed based on need, expertise, required duration of the project, availability of human resources in the market.
The recommendation is also in keeping with the suggestion of the Royal Civil Service Commission (RCSC) to maintain small, compact and efficient civil service.
The employees are categorized into three types of contract.
Firstly in the Consolidated Contract, there are over 2,000 employees mostly in support and supervisory level. They are paid salary, house rent and repatriation benefits similar to civil servant position levels. But are not eligible for annual increment, contract allowance, PF and pension.
Secondly, in Regular Contract, there are nearly 1,000 regular contract employees mostly in professional and management levels. They are eligible for pay, house rent and repatriation benefits and an additional contract allowance of 30 per cent. But they are not eligible for PF and pension benefits.
Finally, in Special Contract, there are a total of 37 employees approved by the cabinet. Most of them are in support and supervisory levels. They are paid salary, house rent and repatriation benefits but are not eligible for annual increment, allowance, PF and pension.
Consolidated contract employees constitute most of the contract employees compared to regular and special. Most of the consolidated and regular contract employees are in the education sector.
As per the report, the regular contract employees recruited in S1 position and below are eligible for regularization. There is a minimum benefit of Nu 3.2 M annually.
Similarly, consolidated and special contract employees recruited in S1 and below positions are eligible for regularisation subject to approved strength.
However, their regularization will have a higher cost implication as per the commission’s report. And for contract employees recruited at P5 and above position levels are not eligible for regularization as per the Civil Service Act.
