Milestone in labor relations, social protection for workers: Stakeholders
KATHMANDU, Nov 28: The government has launched a social security scheme that multiple stakeholders have hailed as a 'milestone' in the country's labor relations and social protection for workers employed by the private sector.
Prime Minister KP Oli inaugurated the scheme amid a grand ceremony held on Tuesday.
The social security scheme, that extends protection to employees in the private sector, will be 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 into the fund will be entitled to various social security benefits.
Inaugurating the social security scheme, Prime Minister Oli said the scheme is steering the whole country toward a new era.
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“We have started a scheme that will provide social protection to those who are employed, those who have lost their jobs, and those who are unemployed,” said the prime minister , elaborating on the purpose of the scheme.
While the scheme covers employees contributing from their monthly salary, it will be gradually expanded to cover informal sector workers and the self-employed also , according to government officials.
Full coverage for medical expenses for workplace accident, occupational disease, disability and accident protection, maternity assistance, medical coverage of up to Rs 700,000 for non-work accident and 60 percent pension to the spouse or parent in case of the death of the employee are some of the benefits of the scheme.
Prime Minister Oli said the new scheme will address the aspirations of both the business community and workers. During the function, this sentiment was echoed by leaders of both the private sector and trade unions .
“The scheme is a meeting point between the demands of workers for stronger social protection and the assurance sought by the private sector for improvement in labor relations,” said Chandra Dhakal, chairman of the Employers' Council of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Also speaking at the event, various trade union leaders said that their long struggle for social protection has now paid off. “The social security scheme has ended the uncertainty surrounding their lives even as they continue to work hard for their employers,” said Chirag Man Singh Kunwar, president of National Democratic Confederation of Nepalese Trade Unions.
The social security scheme will help boost productivity, creating more employment opportunities and contributing to economic growth , according to Minister for Labour, Employment and Social Security (MoLESS) Gokarna Bista. “Once the workers have social security, their productivity will increase and industry will see a rise in output. This will increase domestic employment opportunities and reduce the dependence on foreign employment,” Bista added.
Pointing to cordial relations that the social security scheme is likely to foster, Prime Minister Oli said the whole initiative was aimed at ensuring the rights of workers as stated in the constitution.
“Today, the private sector is sitting together with trade unions and the government to share the joy that the social security scheme has brought,” said Oli. “This is a rare scenario in the world and in our won context,” he added.
Under the scheme launched amid fanfare Tuesday, all staff enrolled under it will be entitled to assistance for medical treatment, health and maternity protection, accident and disability protection, dependent family protection and elderly protection (pension).
Full coverage for medical expenses for workplace accident, occupational disease, disability and accident protection, maternity assistance, medical coverage of up to Rs 700,000 for non-work accident and 60 percent pension to the spouse or parent in case of the death of the employee are some of the benefits of the scheme. An employer contributing to the fund will also be entitled to the pension after retirement.
