Saturday, July 15, 2023

SSF and Phedikhola sign agreement to expand social security to informal sector

Kathmandu, July 12

The Social Security Fund (SSF) and Phedikhola Rural Municipality of Syangja district have signed an agreement on Wednesday for the programme to expand the social security facility to the workers in the informal sector.

Fedikhola has made progress by joining the fund to provide social security scheme to 714 workers currently working in the construction sector, the SSF said in a statement.

The SSF will provide facilities to the workers according to the rules of the Fund.

According to the Social Security Scheme Operating Procedures for Workers in the Informal Sector and Self-Employed Persons approved in January this year, the rural municipality will pay 9.37 per cent of the monthly minimum basic wage for the informal sector workers set by the government and 11 per cent contribution would be made by the workers.

According to the rules, to obtain the social security facilities, about 20.37 per cent of the total wages or Rs. 1912 should be contributed to the fund.

 Similarly, self-employed persons should contribute 31 per cent of the minimum basic salary set by the government to the Fund or up to three times of the minimum of Rs. 2909.35.

Chairman of Phedikhola, Ghanshyam Subedi and Executive Director of the SSF, Kapil Mani Gyawali expressed their happiness over the agreement. Secretary of the Ministry of Labour, Employment and Social Security, Kewal Prasad Bhandari, who is the chairman of the board of directors of the SSF, directed the fund to expand the social security programmes to all the people.

He also called on all 753 municipalities to expand the programme of the informal sector.

The Fund has been implementing social security schemes for workers employed in private sector organisations in the formal sector and contribution-based social security schemes for foreign workers and self-employed persons abroad.

"The fund is expanding its scope of operations for the operation of social security schemes for workers in the informal sector and self-employed persons. The latest agreement with Phedikhola is a step towards that direction," said the SSF.

 Published in The Rising Nepal daily on 13 July 2023.   

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