196 firms listed for contribution-based social security scheme

Published On: December 8, 2018 10:29 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 8: A total of 196 firms have listed themselves for the newly introduced contributory-based social security scheme. 

According to the Ministry of Labor, Employment and Social Security, the registration of employers to enrol themselves to participate in the scheme have been encouraging so far. 

“We have got registration of 196 companies as of Friday for the contributory-based social security scheme,” said Shyam Raj Adhikari, executive director at the Social Security Fund. “Companies from diverse sectors including banking, manufacturing, education, media and hospitality, among others, have listed themselves for the scheme. The progress so far is impressive,” he added.

Almost all companies enlisted so far are from Province 3. 

The social security scheme was launched by Prime Minister Khadga Prasad Oli amid much fanfare last month that has been hailed by many as ‘milestone’ in the country’s labor relations and social protection for workers employed by the private sector. The social security scheme extends protection to employees in the private sector on a contributory basis. 

Each employee will have 11 percent of his or her salary deducted for payment into the social security fund (SSF). The employer will make a counterpart payment into the fund equivalent to 20 percent of the salary. Employees contributing to the fund will be entitled to various social security benefits.

Adhikari said that the employees of the registered companies will be listed in the second stage. “First, employers will have to be listed in the scheme within three months. Then, their employees will also be listed in the second stage. After that, they will be starting making a contribution to the fund from their salaries while employer will also add money to the fund,” added Adhikari. 

Earlier on November 12, the government issued a notice instructing all employers to get listed in the scheme within three months.

A deadline of December 1 has been set for employers in Province 3. By January 15, all employers should list themselves.

Employees can draw support from the fund for their and their family members’ medical treatment. Family members will be receiving the pension in case of the death of the contributing employee. Under old-age protection, a contributing employee will be entitled to life-long pension after retirement from the job.

While an employee will be entitled to social security benefits for accident and disability from the day the contribution to the fund starts, he/she will have to make contributions for at least six months for entitlement to medical and health-related protections. Only those who have contributed for at least 12 months will be eligible to draw maternity protection benefits. But, the fund will not be covering expenses resulting from natural disasters and road accidents.

The scheme will cover full expenses in case of workplace accident or occupational disease. For non-workplace accidents, the scheme will cover expenses up to Rs 700,000. In case of the death of a contributor, his/her spouse or parents will be getting a pension of 60 percent of the contributor’s last basic salary while the children will also be getting a 40 percent educational scholarship until they are 18 years old.

Leave A Comment