In line with the constitutional provision and existing laws, the government has extended the coverage of the Social Security Fund (SSF) for workers and self-employed persons in the informal sector. With this initiative, such workers can now join the social security scheme by registering applications with SSF. The government has implemented the social security programme for more than a decade after the introduction of the Social Security Fund (Management and Operation) Regulations. According to SSF, a total of 18,165 employers have so far been registered with this Fund. The number of contributors to SSF has now reached 716,128. Following the enactment of the Contribution-based Social Security Act, 2017, more employees have started participating in SSF. The government aims to ensure the workers’ social security right and get all the workers involved in this scheme to reduce their socio-economic risks and provide contributors with social security. In the long-run, the government plans to fully materialise the concept of universal social security.

As per the government’s plan, workers of the informal sector are required to contribute at least 11 per cent of their basic wages to the social security scheme. The government adds 9.37 per cent to the amount. Thus, as much as 20.73 per cent of the total monthly income of each worker will be deposited in the fund. The amount of money to be deposited on behalf of the government will be contributed by any of the three levels of government -- federal, provincial and local. With the enforcement of this practice, all tiers of the government are bound to become responsible for the welfare of workers. As the SSF implements a myriad of schemes ranging from medical treatment, accident and disability services to old-age security, the workers of the informal sector stand to reap the benefit. In the absence of such programmes, the workers used to reel from a financial problem immediately after quitting the job.

However, the self-employed individuals need to contribute either 31 per cent of their minimum wage or three times their minimum wage to SSF. Such contributors will be entitled to get up to Rs. 100,000 annually for medical treatment in the designated hospital. It is compulsory for them to cover 20 per cent of the total claimed amount and the remaining chunk of money will be borne by the Fund. Another advantage of this scheme is that both male and female will have basic salary of a month under its maternity service while female beneficiaries will get maternity benefits equivalent to 60 per cent of their basic salary of 98 days. Under this scheme, each of the beneficiaries will be granted Rs. 700,000 in case of an accident. In the event of temporary disability, a contributor will get a minimum of 60 per cent of his/her basic salary. To be eligible for having access to the old-age facility, the contributors need to be above 60 years and they should have worked as minimum as 180 months.

Launching the scheme amidst a function in Kathmandu on Wednesday, Prime Minister Pushpa Kamal Dahal Prachanda hoped that it would help improve the living standard of the marginalised section of the society. He also promised that the government would implement the social security scheme as an intensive campaign to provide benefits to the contributors. The government plans to get over four million workers from the informal sector involved in the scheme. For the sustainability of the programme, the government is preparing an integrated social security framework to avoid the cases of duplications.

Published on: 18 August 2023 | The Rising Nepal