Contract employees of Gadhimai Municipality in Rautahat district, Madhesh Province, locked the municipal office on Monday, demanding long-overdue salaries ahead of the Dashain festival. The protest has halted municipal services, with permanent staff also awaiting their pay.
Employees from the education, health, and agriculture sections accuse the municipality of discrimination, stating that staff working in ward offices have received their salaries while they have not. This is not the first such protest; contract employees previously locked the office for about a month starting Bhadra 30, 2083 (September 15, 2026), over the same issue.
The current dispute reignited after a previous agreement to resolve the salary issue was not honored. Adding to the employees’ frustration, the municipal executive committee decided to pay contract employees only 20% of their salaries. This decision was reportedly made in the absence of the Chief Administrative Officer.
Administrative Situation and Financial Challenges
The Chief Administrative Officer (CAO) of Gadhimai Municipality, Indradev Pandey, has been absent from the office for the past 10 days, currently in the capital, Kathmandu. His absence has severely affected daily administrative tasks.
Pandey claims the municipality lacks sufficient budget to pay salaries. He attributes the financial crisis to the Ko.Le.Ni.Ka. Rautahat, a branch of the Office of the Auditor General, which he alleges deducted approximately Rs 30 million from the municipality’s account without consent. Pandey stated that he could not be present at the office due to the lack of a conducive working environment caused by the budget cut. He has indicated that paying employees will be difficult until the financial problems are resolved, suggesting continued uncertainty for service delivery.
The municipal executive committee, led by Mayor Shyamprasad Yadav of the Nepali Congress, decided to pay contract staff only 20% of their salaries. A municipal source revealed that Gadhimai Municipality, despite passing a budget of Rs 592.25 million for the fiscal year 2083/084, hired about six times more contract employees than necessary. This over-employment has significantly increased administrative costs, directly impacting the municipality’s ability to pay salaries on time.
Broader Provincial Financial Challenges
The financial woes of Gadhimai Municipality are part of a broader fiscal crisis observed across Madhesh Province. The provincial government’s budget of Rs 41.13 billion for the current fiscal year faces significant implementation challenges due to insufficient resource assurance. This has led to budget cuts and freezes across various sectors by the provincial government.
The disruption of services, especially from departments directly serving citizens like education, health, and agriculture, poses a significant risk to the municipality’s overall functioning. Employees report difficulties in daily living due to the prolonged non-payment of salaries. An immediate dialogue among elected representatives, administration, and protesting employees is deemed necessary to resolve the complex situation.
