SSF yet to attract many private firms even one year after its implementation
December 16, 2019 05:50 PM NPT
By: Kamal Subedi
KATHMANDU, Dec 16: The much-hyped Social Security Fund (SSF) has completed one year since it was unveiled by the Oli-led government on November 27 last year.
During this period, as many as 12,000 employers and 132,000 contributors have joined this much-talked-about scheme. According to the SSF secretariat, Rs 273.50 million has been collected in the fund so far.
However, many private companies seem to be reluctant in joining this program citing double taxation and 60 years of age bar to receive the pension facility.
The government has been urging one and all to be part of this program as it has ensured the social security of the people. It also warned of strict punishment such as disqualifying for renewal of the institutions if they failed to join the program.
The experts, however, opine that it is not justifiable to force the private firms and institutions to join the scheme as many of them might have already adopted the policies of various insurance companies, Employees’ Provident Fund and Citizen Investment Fund.
The issue has become a matter of concern for many in recent times as the banks and financial intuitions denied adopting the scheme.
According to the Senior Vice-chairperson of Nepal Banks and Financial Intuition Employees Association Dharma Prasad Khanal, the SSF doesn’t benefit the employees as one has to wait until 60 years of age to get pension facility and pay double tax. He also argued that an employee doesn’t get a collective pension, according to the scheme.
However, the Director of the SSF Kapil Mani Gyawali asserted that it is mandatory to join the program as it is not only the campaign of the government but also provides various facilities from a single door. “We are preparing to make legal provision of renewing the institution, company, industry and office after getting them registered in the SSF,” Gyawali revealed.