Evaluating the Effectiveness of the Third Attempt to Implement a Two-Day Public Holiday

March 23, Kathmandu – Due to the conflict between the United States and Iran and the resulting fuel crisis, the government has declared a two-day public holiday. As part of a strategy to extend office hours and reduce working days from six to five per week, the government announced a change in office hours starting today (Monday). According to government spokesperson and Education Minister Sasmita Pokharel, offices except educational institutions will operate from 9:00 AM to 5:00 PM. She stated, “Office hours except for educational institutions are set from 9 AM to 5 PM.”

In Nepal, the standard workweek in public and service sectors is 40 hours, previously allocated as 7 hours daily with 5 hours on Friday. The new policy mandates 8 hours per day for five days a week. Following the government’s decision, courts nationwide have also announced opening hours from 9:00 AM starting Monday. Security agencies and other official services will adjust their schedules accordingly. The private sector has committed to revising their schedules as well, though clear directives for educational institutions and informal sector workers remain pending.

This is the second time in three decades that such an initiative has been attempted. Historical records show that this is Nepal’s third attempt at instituting a two-day public holiday, with prior efforts being unsuccessful for various reasons. In 1991, the Administrative Reform Commission recommended adopting a five-day workweek to improve employee productivity and manage traffic. The government led by Congress leader Krishna Prasad Bhattarai introduced this system in 1999, initially limited to the Kathmandu Valley, and it lasted approximately two years to enhance service delivery and facilitate citizens.

Again, in 2022, under Prime Minister Sher Bahadur Deuba, the two-day holiday was reinstated with offices operating from 9:30 AM to 5:30 PM starting May 15. It was introduced amid trade deficits and foreign currency shortages, aiming primarily to reduce fuel consumption. However, this arrangement proved ineffective within a month. While many countries have maintained a two-day weekly holiday for years, Nepal typically adopts it as a crisis response measure.

The government’s current implementation of a two-day public holiday appears directly linked to ongoing fuel shortages and traffic congestion. Earlier in 2020, the Ministry of Tourism had studied the possibility of introducing two-day public holidays to revive the economy and boost domestic tourism post the COVID-19 pandemic. Led by Joint Secretary Kamal Prasad Bhattarai, the working group prepared a report revealing that out of 127 countries, 115 observe a two-day weekend, and 91% of these maintain a 40-hour or lower weekly work schedule.

Previously, Nepal’s centralized system forced citizens from remote areas to travel to administrative centers to access services, which has since decentralized, allowing most services to be available locally. The committee concluded that introducing a two-day public holiday would not disrupt service accessibility as it once might have.

Based on the 2020/21 budget, the committee estimated annual savings of approximately NPR 165 million from reduced expenditures due to two-day holidays. Their study also suggested that such holidays help reduce family stress, provide adequate rest and entertainment, increase productivity, and encourage domestic tourism. Approximately 500,000 public service, military, police, and private school employees and their dependent families, totaling about 2.5 million people, would benefit from increased family time. The report also forecasted that if around 800,000 people took short trips locally, it would positively impact internal tourism and the economy.

The committee claimed that two-day public holidays would have three main positive effects: enhanced productivity among employees and offices, cost savings, and support for domestic tourism. Furthermore, the study highlighted that two-day holidays could promote gender equality and facilitate balanced family life. It recommended that public sector organizations implement a two-day workweek and encouraged the private sector to adopt similar practices.