KATHMANDU, Jan 16: Contributors of the Social Security Fund (SSF) have received payouts totaling more than Rs 18.34 billion, according to official figures released by the fund. The payments have been made to workers engaged in both domestic and foreign employment.
SSF data show that a total of Rs 18.34 billion has been disbursed to 262,264 contributors from the start of contribution collection in mid-July 2019 to January 13, 2026. The payouts cover various social security schemes, including health, accident, disability, dependent family, and old-age protection.
As of now, 2.74 million contributors have been formally registered with the SSF. Although the government formally announced the SSF on November 27, 2018, the collection of contribution amounts began only in mid-July 2019.
The largest share of contribution comes from foreign employment. According to the SSF, 2.07 million Nepali workers employed abroad have been enrolled so far. This number increased significantly after the government made SSF enrollment mandatory while obtaining labor permits.
Within the country, 666,983 workers from the formal sector, including industries and establishments, are affiliated with the SSF. However, participation from the informal sector remains very low, with only 811 workers registered so far. Similarly, 738 self-employed individuals have joined the fund as contributors.
On the employer side, 22,739 industries, institutions, and companies have been registered with the SSF and are depositing contributions for their employees.
SSF collects nearly Rs 100 billion in six years from workers
The financial position of the SSF has continued to strengthen. Since its inception, a total of Rs 99.56 billion has been collected from employers and workers.
According to the fund, claim payments under the medical treatment, health and maternity scheme amount to Rs 2.83 billion, while payouts under the accident, disability, and dependent family protection schemes stand at Rs 6.23 billion. Claims under the old-age security scheme have reached Rs 7.99 billion, while payments from additional voluntary contributions total Rs 1.74 billion. The SSF has also disbursed Rs 8.82 billion as returns on accumulated savings.
The government introduced the contribution-based social security program to ensure workers’ rights to social protection and to extend social security coverage to employers as well. The primary objective of the SSF is to guarantee comprehensive social security benefits to workers.
To include workers employed abroad and those self-employed overseas, the SSF has made special provisions. Migrant workers are allowed to contribute up to three times the minimum basic salary set by the Government of Nepal.
To be eligible for benefits, migrant workers must meet specific conditions. They must have deposited contributions for at least three months preceding an incident to receive benefits under accident, disability, medical treatment, health, and maternity schemes. In the event of a contributor’s death after contributing for at least nine months, the dependent family becomes eligible for benefits under the dependent family protection scheme.
After completing foreign employment or overseas self-employment and returning to Nepal, contributors may either withdraw their accumulated amount as retirement savings or opt to receive a monthly pension under the old-age scheme after reaching 60 years of age.
The SSF has also provided significant relief in healthcare expenses. For contributors, their spouses, and children under 18 years of age, the SSF covers up to Rs 25 thousand annually for outpatient treatment cost and up to Rs 100,000 annually for inpatient treatment. If a migrant worker meets with an accident abroad and requires treatment in Nepal, the SSF covers medical expenses of up to Rs 700,000.
Workers employed in Nepal’s formal sector are entitled to more extensive benefits. The SSF provides medical treatment coverage of up to Rs 100,000 per year for contributors, their spouses, and children under 18. In cases of maternity, the SSF provides financial support equivalent to one month of the minimum basic salary per newborn child.
Contributors diagnosed with critical illnesses such as cancer or kidney failure are eligible for medical treatment support of up to Rs 1 million. In cases of occupational diseases, the SSF bears the entire cost of treatment.
The SSF has divided accident insurance into two categories. For work-related accidents or occupational diseases, the SSF covers all treatment expenses. For accidents occurring outside the workplace, medical coverage is capped at Rs 700,000.
A key feature of the SSF is dependent family protection. In the event of a contributor’s death, the spouse is entitled to a lifetime pension. If there is no spouse, the pension is provided to the parents. Children of the deceased contributor receive a monthly education allowance until the age of 21. In addition, the SSF provides a one-time payment of Rs 25,000 to the dependent family to cover funeral and final rites expenses.
Contributors also have the option to withdraw the accumulated amount along with returns as a lump sum upon leaving employment or after reaching the age of 60.
The SSF also offers tax incentives. Contributors receive a 1 percent social security tax exemption on contribution amounts, while tax relief is available on up to one-third of taxable income or a maximum of Rs 500,000 per year. Contributors wishing to deposit additional amounts beyond the mandatory 31 percent contribution may do so under the retirement scheme.
Regular contributors are also eligible for various loan facilities. After contributing continuously for five years, contributors can access medical loans of up to Rs 1 million, housing loans of up to Rs 7.5 million, education loans of up to Rs 3.5 million, and loans of up to 80 percent of the accumulated amount under the retirement scheme.
Under SSF operational guidelines, banks and financial institutions, insurance companies, cooperatives, and other organized institutions, along with their employees, are required to be mandatorily registered with the SSF. The fund was established under the Social Security Fund Regulation, 2010, and its activities are currently governed by the Contribution-Based Social Security Act, 2017.
The SSF has emphasized the use of technology to provide hassle-free services and to make the system more contributor-friendly.
