A technical committee formed under a joint-secretary in the Ministry of Labor and Transport Management (MoLTM) has formally started work this week to draft the law. [break]
The committee, which held its first meeting this week, has two representatives from the Ministry of Law and Justice (MoLJ) and MoLTM, and two representatives each from three large trade unions and three major associations of the private sector.
“The technical committee is planning to come up with a final draft of the Act in two months,” Mahesh Baral, director of Social Security Fund (SSF), told Republica. This draft will then be forwarded to MoLJ and later to the Cabinet for final approval. SSF officials has been saying such a comprehensive guideline is long overdue.
Baral said: “We have been rudderless because of the absence of a comprehensive law as we don´t know our boundaries yet.” Lack of law has also prevented SSF from actively working on social security programs announced by the government, according to Baral.
The government had earlier said it would implement social security programs for workers´ health insurance, workplace accident and maternity benefits by the end of this fiscal year.
These social security schemes were announced by the government to reduce financial burden on workers in case they fall sick, meet with an accident while working or go on a long unpaid leave because of pregnancy.
“This was essential as most of the employees are not enrolled in insurance plans and most firms hesitate to foot the workers´ hospital bills,” Baral said. “SSF will create a mechanism to provide adequate compensation in case they have to visit hospital due to whatever reason.”
To fund these programs, the government has started levying one-percent social security tax on all employees working in formal sector since last fiscal year. Till mid-May, the fund has collected Rs 390.4 million, to which the government has added Rs 100 million last fiscal year. It has pledged to top up the fund with another Rs 100 million this fiscal year.
Related story
Draft of proposed Armed Police Force Act affects promotion of 8...
