Kathmandu, November 27: In a move ensuring social security of working population of Nepal, the Government of Nepal has announced its most-discussed Social Security Scheme (SSS) at a program in Kathmandu on Tuesday. Observing the launch of the new scheme, PM Oli called it as a new era for the country terming it as the ‘First Social Security Day’. The scheme is going to give a complete social security cover for Nepali citizens, especially the working population, in the country’s both formal and informal sectors.
As a first step in the process, the Prime Minister of Nepal KP Sharma Oli unveiled the scheme first for Nepali employees in the formal sector.
The scheme will soon be launched for the informal sector as well, informed the Ministry of Labor, Employment and Social Security (MoLESS). Calling this as the nation’s pride, MoLESS Minister Gokarna Bista called on everyone to support the successful implementation of the scheme.
Under the new law, all private employees of Nepal are mandated to contribute 11 percent of their basic salary to the social security fund, while employers will add 20 percent of the employee’s basic salary.
Through this contribution, employees will get entitlement to compensation in case of job loss, illness, accidents and situations leading to work-off due to pregnancy (in case of females).
Once the scheme is launched, the employees will start sending mandated deposits to the Citizen Investment Trust and Employees Provident Fund to Social Security Fund (SSF).
Out of the total fund, SSF will allocate 3.22 percent for medical treatment, health & maternity security, 4.52 per cent for accident & disability security, 0.87 per cent for dependent family security and 91.39 per cent for old age security.
Coming to the accidental and disability coverage, workers can avail the benefits immediately a day after depositing their first instalment. Employees can also avail compensation benefits in case of any injuries in the workplace or in case they develop medical complications due to work condition. This will be effective only after they work for a minimum of two years and deposited all instalments on a regular basis.
The scheme also offers pension eligibility for all workers for 15 years after they begin regular contribution to the fund. Responding to the scheme, the private sector feels that SSC will surely ensure workers’ social security and creates investor-friendly environment across the country.