Nepal is marking the Eighth Social Security Day today (November 27) with a special programme scheduled to begin shortly at the Office of the Prime Minister and Council of Ministers, Singha Durbar.
The government had formally launched the contribution-based social security scheme on November 27, 2018, fulfilling the constitutional guarantee of social security for all. The scheme is managed by the Social Security Fund (SSF) and is designed to ensure social protection for contributors and their dependents.
SSF Executive Director Kaviraj Adhikari said the fund aims to enrol all workers — reduce their economic and social risks, realize universal social security, and institutionalize contribution-based social security under constitutional provisions.
Rising Coverage: Workers Now Insured
The Fund has extended coverage beyond the formal sector to include Nepalis working abroad, informal sector workers, and self-employed individuals. As of Wednesday, around 2.65 million people have been registered as members of the contribution-based social security scheme. This includes 649,511 from the formal sector, 1,996,579 working abroad, 799 from the informal sector and 582 self-employed workers.
Members and their families now benefit from various facilities: medical treatment, health and maternity care, accident and disability cover, family protection for dependents, and old-age security, among others.
Since inception, the Fund has collected about Rs 95.68 billion in contributions. Till date, 253,143 workers have received claims worth approximately Rs 17.72 billion. In addition to health benefits, the Fund provides contributors with interest on savings, monthly pension after the designated period, housing and educational loans, and other social security benefits.
The SSF, launched by then Prime Minister KP Sharma Oli in 2018, has undergone several amendments to expand its scope and increase participation. The government amended the social security procedure in March to make the scheme more appealing amid low enrolment. With the fifth amendment, children of contributors are now also entitled to certain benefits.
At present, the SSF bears 80 percent of treatment costs requiring hospitalization up to Rs 100,000, and 50 percent of costs up to Rs 1 million in cases of serious illness. For outpatient services, it covers 80 percent of treatment costs up to Rs 25,000 annually.
Contributors who have made continuous payments for at least three months are eligible for these benefits, which continue for up to three months even after they stop contributing due to the end of employment.
Under the contribution-based model, employers contribute 20 percent of an employee’s basic salary and employees contribute 11 percent, making a total of 31 percent of the basic salary deposited into the Fund.
The day is being observed under the theme, “Social Security: Universal access to health services, a pension-eligible society and productive livelihoods to safeguard citizens’ lives.” -- RSS
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