November 4: The government is preparing to launch the work procedure of the Social Security Fund after the scheme failed to attract commercial enterprises. Even the employees have shown reluctance to get listed in the contribution-based scheme as the return is not as attractive as that of the Employee Provident Fund (EPF) and the Citizens Investment Trust (CIT). The workers are hesitant to contribute to the fund because they cannot get any benefit from the scheme or utilize any amount during emergency until they retire.

The government has realized the need for policy level reforms due to the discouraging participation of the private sector in the scheme. Only 8,000 enterprises have enlisted in the scheme as of mid-October.

In this context, the Social Security Fund has prepared a work procedure to provide loans to the contributors under 12 different heads including home loan, educational loan among others.

The Ministry of Labour, Employment and Social Security said that the work procedure has been sent to the Council of Ministers for approval.

Executive Director of the Social Security Fund Kapil Mani Gyawali told New Business Age that the new offers mentioned in the work procedure are more attractive than the facilities provided by the EPF and CIT.

He said that the work procedure will be implemented as soon as it gets approved by the cabinet.

Gyawali further said that they decided to provide loan as per the international practice.