Know the Contribution-based Social Security Scheme of Nepal 2018

The Contribution-based Social Security Fund is formally announced and launched today in Nepal with a wider ambition to protect the status of workers in Nepal. For the first time, the private sector employees are brought into the consideration of the Government for further security. 

The scheme is based on the Act for managing to provide Contribution-based Social Security that was formulated on August 13, 2017. See its Regulation here. 

In this blog, I have provided some of the key characteristics of the Act that has enabled this day to come. In my further blogs, I will be writing more about it. 

1. Dependent Family members identified as follows:
1. Husband or wife
2. Son, daughter-in-law, daughter
3. Father, mother, mother-in-law, father-in-law
4. Grandson or granddaughter
2. No entitlement to social security without contribution
3. Both employer and employees must register to become eligible for the scheme
4. Deposit of contribution on a regular and monthly basis by both the employee and employer and within 15 days of the contribution receivable date
5. Scheme open for the workers in informal sector as well as those who are self-employed while the Government of Nepal deposits the amount based on their contribution in the Fund. Such participants can choose one or more schemes. 
6. Failure to deposit in the Fund obliges the listed employer to deposit the amount for three months. The employer can recover the contribution deposited in such a manner. 
7. Schemes of Social Security
1. Medicine, treatment and health security
2. Maternity security
3. Accident security
4. Disability security
5. Old-age security
6. Dependent family security
7. Unemployment assistance
8. Others as specified by the Fund
8. Social Security Fund as an entity to regulate the affairs.