Govt to miss implementation of social security scheme

KATHMANDU, June 7: Workers waiting eagerly for the government to launch various social security schemes it promised against one percent tax they paid over the past 22 months are set to be disappointed this year as well.



Ministry of Labor and Transport Management (MoLTM) -- the lead ministry responsible for implementing the social security program announced in budget for fiscal year 2009/10 -- has not yet managed to give full shape to a tripartite body responsible for executing the program.[break]



Given that the body -- Social Security Fund Management Committee (SSFMC) -- first needs to work out details of the schemes, mechanism for the delivery of insurance services and issue individual identity (ID) cards to the taxpayers to implement the programs, officials ruled out introduction of the program within this fiscal year.



“Members in the committee were appointed only this week,” said Krishna Bahadur Raut, executive director of the committee secretariat, who himself was appointed on April 9 only. And the government is still to provide enough manpower and logistics to it, added Purna Chandra Bhattarai, spokesperson at MoLTM.



Given the situation, Raut said the secretariat will still take another five to six months to begin its function systematically.



Not surprisingly, concerned stakeholders point finger at each other for the delay in getting the sensitive program, which is believed to pave the way for liberal labor regime, implemented.



For instance, Bhattarai attributed late enforcement of regulation, which was published in Nepal Gazette on March 21, as one major factor behind the delay. Others blamed trade unions for not nominating their representatives in the committee on time. Trade unions, on the other hand, attributed laxness in government machinery for poor information dissemination, something which left them confused in the initial period.



Despite wage row and high inflation, workers, have already contributed Rs 580 million in the fund. Apart from that, workers of private firms have agreed to contribute additional 10 percent of their monthly salary and employers have also consented to contribute double the workers´ amount in the fund. They have also put pressure on the government to make contribution equal to that of the employers in the fund.



The ministry has identified nine major schemes that it will launch in the immediate and medium term from the fund. The schemes include unemployment benefits, work-place accident and casualty insurance, illness insurance, maternity insurance, dependant cover, disability insurance, old-age insurance and family insurance scheme.



Thanks to delay in working out the schemes, officials said the workers might have to wait for one more year to get the beneficiary ID and enjoy the facility. “Realistically speaking, the secretariat can start delivering the facility by the end of next fiscal year only,” said Raut.



Officials of trade unions slammed the government for its apathy in implementing the program on time.



“It is a matter of great shame that the government is paying no heed to implement the programs that are so important for the workers,” said Umesh Upadhya, general secretary of General Federation of Nepalese Trade Union (GEFONT). Ramji Kunwar, senior vice president of Nepal Trade Union Congress (NTUC), echoed Upadhya.



They added that the trade unions are soon coming together to press the government to complete all necessary administrative works like formulation of law and details of schemes, including guidelines on implementation of the schemes, so that workers could start enjoying returns from their investment from the upcoming fiscal year.

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