Green Home opens first childcare centre in Sudurpaschim

Kathmandu, Feb. 14

At a time when many female workers employed in factories and industries are leaving their jobs, citing their inability to find time to care for their children while industries and factories have also been reluctant to hire women who have young children, an industry in Kailali has found an alternative solution to address both problems.

Dinesh Lamsal, General Secretary of the Kailali Chamber of Commerce and Industry, has established a childcare centre, primary treatment facility, and breastfeeding room within the premises of Green Home Pvt. Ltd., which he founded in Lalpur, Godawari-6, Kailali.

The facility was inaugurated at a programme by the Treasurer of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Bharat Raj Acharya on Friday.

Acharya said that this was the first time in Sudurpashchim Province that a childcare centre, primary treatment facility, and breastfeeding room had been established within an industrial structure.

“The biggest challenge for female workers was the obligation to care for their children while working. The industry has now addressed this issue,” he said. “This practice, which has begun with this industry for the first time in Sudurpashchim Province, should be adopted by all industries.”

Built with an investment of around Rs. 1 million, the facility allows female employees with children to care for them at regular intervals. The centre is equipped with essential facilities for nutritious food and play materials for children.

Likewise, Lamsal said the childcare centre was established after experienced female workers began leaving their jobs due to childcare difficulties, with the aim of providing a supportive environment for their children within the workplace.

According to him, the industry currently employs 92 female and 32 male workers. The female workers, who earn around Rs. 20,000 per month on average, have expressed enthusiasm at being able to care for their children at their workplace.

Hari Paudel, Assistant Director of FNCCI, said that the childcare centre would support children’s learning through play.

The industry has created physical infrastructure for the childcare centre, breastfeeding room, and dressing room, while FNCCI provided the necessary internal equipment with financial and technical support from the International Labour Organization (ILO) Nepal.

The facility provides arrangements for children under four years of age to play, learn, and eat, and the industry has stated that a facilitator will also be appointed to support them.

FNCCI Sudurpashchim Vice-President Anil Kumar Bhojaniya and ILO's National Programme Coordinator Tara Kandel said that this initiative launched in Kailali is necessary and should be replicated in industries across the region.  

Published in The Rising Nepal daily on 15 February 2026.    

SSF meets Rs. 100 billion milestone

Kathmandu, Jan. 23

The Social Security Fund (SSF) has met the Rs. 100 billion milestone in the past seven years since it adopted the contribution-based social security system in 2018.

By Friday, the SSF has collected Rs. 100.11 billion from more than 2.757 million contributors – employees from 22,807 employers, Nepali migrant workers, self-employed and workers from informal sector.

The accumulated fund comprises Rs. 91.29 billion in contributions and Rs. 8.82 return from the collected amount.

However, migrant workers are the largest contributors. According to the statistics published by the SSF, more than 2.086 million contributors are from foreign employment. Since March 2023, the government has made the enrolment of migrant workers to the Fund mandatory. They have to register with the SSF as they obtain the labour approval to work abroad, said Kabiraj Adhikari, Executive Director of the Fund.

Likewise, 669,620 contributors are employed by 22,807 institutions, 757 are self-employed, and 813 are employed in the informal sector.

Meanwhile, the SSF paid out Rs. 18.43 billion against 972,846 claims. In the last seven years, the Fund has received 263,813 claims under four different schemes. The highest amount (Rs. 15.16 billion) is paid against the claims under the old-age protection scheme. The Fund received 135,727 claims under this category.

It received 130,001 claims for medical treatment, health and maternity scheme and paid Rs. 2.71 billion against these applications.

Likewise, 7,042 claims were submitted under the accident and disability protection scheme, and 809 claims under the dependent family protection scheme. The payments for these claims stand at Rs. 242 million and Rs. 307 million, respectively.

The collected and paid amount under these schemes are almost equal which pose a risk in the future. “We are aware of this risk. So, in the recent years, the amount to be paid against the claims has not been increased despite the increment in the salary or the contribution to the SSF,” said Adhikari.

The SSF has collected Rs. 80.39 billion under the old age pension scheme, Rs. 2.85 billion under the medical treatment, health and maternity scheme, and Rs. 6.26 billion under the accident and disability protection and dependent family schemes.

Nepali migrant workers have contributed Rs. 4.47 billion to the Fund.

According to Adhikari, with the increased fund-size amidst the economic slowdown, fund management has become critical. It also means the funds will offer less return than the yester years.

To manage these challenges, the SSF has reduced the period to obtain special loans and other financial support for its contributors.

 

Contributions and payments at SSF

Scheme	Contribution received (Rs.)	Payment against claims (Rs.)
Medical Treatment, Health and Maternity	2.85 billion	2.71 billion
Accident and Disability Protection	6.26 billion	242 million
Dependent Family Protection		307 million
Old Age Protection	80.39 billion	15.16 billion

 

Although the SSF was established in 2011, it was reorganised with the implementation of the Contribution-based Social Security Act, 2018 as an agency under the Ministry of Labour, Employment and Social Security (MoLESS).

As per the law, the scheme is mandatory for all employers and employees, and they require to contribute 31 per cent of their basic salary – 20 per cent by the employer and 11 per cent from the employee. This contribution is distributed among the four different schemes. The schemes managed by the Fund are said to protect workers in emergencies such as sickness, accident, unemployment, disability, and post-retirement. 

Published in The Rising Nepal daily on 24 January 2026. 

Nepal launches social security for informal workers, self-employed

Kathmandu, Dec. 24

In a significant step towards bringing millions of workers currently outside formal safety nets under social protection throughout their life cycle, Nepal has launched a National Campaign on Social Security for Informal Workers and the Self-Employed.

The Ministry of Labour, Employment and Social Security (MoLESS), Social Security Fund (SSF) and International Labour Organisation (ILO) in Nepal launched the campaign at a programme organsied in Kathmandu on Wednesday.

The scale of the challenge is substantial. More than 86 per cent of Nepal’s workforce is engaged in informal employment, with women disproportionately affected. Over 90 per cent of employed women work in the informal sector, often without access to maternity protection, health coverage, or income security in old age.

Although nearly 2.7 million workers are registered with the SSF, participation by informal workers and the self-employed remains strikingly low. Only around 1,500 individuals from these groups are currently enrolled, exposing a major inclusion gap in the country’s social protection system, informed Kabi Raj Adhikari, Executive Director of the SSF.

According to the SSF, the campaign brings together government institutions, employers’ and workers’ organisations, local governments, civil society and the media, with the aim of expanding social security coverage to those most in need.

Speaking at the event, Minister for Labour, Employment and Social Security Rajendra Singh Bhandari described social security as a protective shield. “No matter how heavy the rain, what matters is how strong the umbrella is. Social security should act as that protective armour,” he said, warning that weak systems could lead to social unrest, conflict and forced migration.

According to him, the government must be proactive in addressing the demands and concerns of the public since if social security issues are not addressed comprehensively, it may fuel unrest and conflict and youth outmigration could also increase. 

Minister Bhandari expressed concerns over the recent trend in youth who do any kind of job in foreign countries but don't take up the same jobs in Nepal. "They have a tendency to put forth their demands but not to contribute to work and development," he said.

Numan Özcan, ILO Country Director for Nepal, said the initiative was grounded in the principle of inclusion. “This campaign is about ensuring that no worker is left behind. Social security is fundamental to equity, economic resilience and inclusive development,” he said.

The campaign places a strong emphasis on women workers. For many women in informal employment, the absence of social security can determine whether maternity leads to protection or loss of income, whether illness results in treatment or debt, and whether old age brings dignity or dependence, read a joint statement issued by the SSF and ILO.

In recognition of these challenges, the campaign is supported through European Union funding under the Women’s Empowerment Programme (EWPN). The support aims to strengthen women’s economic agency and reduce vulnerability across generations.

Jose-Luis Vinuesa-Santamaria, Head of Cooperation at the EU Delegation to Nepal, said social security was both a right and an investment. “Social security is deeply rooted in Europe’s own social model. The EU affirms that workers have the right to social protection regardless of the type and duration of their work,” he said.

Nepal has already laid a strong legal foundation through its Constitution and the Contribution-Based Social Security Act of 2017. Effective social protection coverage has increased from 17 per cent in 2021 to 21 per cent in 2023. However, challenges related to adequacy, awareness and inclusion persist.

Under the government’s 16^th Development Plan, Nepal aims to expand social protection coverage to 60 per cent of the population and significantly reduce informality by 2028.

Labour Secretary Dr. Krishna Hari Puskar underscored the broader principle behind the initiative, stating that “social security is not a luxury but a human right”.

The campaign is said to focus on strengthening the role of local governments in identifying and enrolling informal workers, operationalising contribution subsidies through better coordination, raising public awareness, enhancing digital systems such as ILMIS and OpenIMIS, and building stronger partnerships across government, civil society and social partners.

Published in The Rising Nepal daily on 25 December 2025.

CNI, SSF to collaborate in increasing awareness on social security

Kathmandu, Dec. 9

The Confederation of Nepalese Industries (CNI) and the Social Security Fund (SSF) have reached an understanding to increase awareness about social security in the industrial sector and to encourage workers to enrol in the scheme.

The Memorandum of Understanding (MoU) was signed in Kathmandu on Monday during an orientation and interaction programme on social security jointly organised by CNI and SSF.

Under this collaboration, CNI will support its member industries in enrolling in the social security scheme, conducting awareness programmes across the country, providing necessary information, and ensuring the long-term welfare of workers, CNI informed in a statement.

The MoU was signed by CNI Director General Dr. Ghanshyam Ojha and SSF Executive Director Kabiraj Adhikari.

Speaking at the programme, CNI President Birendra Raj Pandey said the collaboration is highly significant for both workers and industries. He expressed CNI’s commitment to continuously support industries in joining the SSF and stated that this partnership would help make the social security system more practical and accessible.

Secretary of the Ministry of Labour, Employment and Social Security, Dr. Krishna Hari Pushkar, emphasised that the SSF is an important foundation for making workers’ lives easier and more secure. He added that this agreement will play a vital role in increasing the active participation of workers and employers from all sectors and in supporting them to be integrated into the registration system.

Likewise, CNI Vice-President Bhim Ghimire said that the Fund is not merely a welfare programme but a key foundation for human capital development. He maintained that CNI would also conduct similar awareness and interaction programmes extensively at the provincial level.

Executive Director of the SSF, Kabiraj Adhikari, said that the partnership is important for further strengthening the social security system and expanding the benefits available to workers.

 

Published in The Rising Nepal daily on 10 December 2025.

MSEs hesitate to join SSF scheme

Kathmandu, July 24

Seven years since Nepal implemented the contribution-based social security scheme for the employees, the question remains on how to better attract Nepali businesses to the Social Security Fund (SSF).

In particular, micro and small enterprises (MSEs), which according to the Economic Census of 2018 constitute 99.5 per cent of total 923,356 in operation then, are lagging in this regard.

While the law has mandatory provisions for formal schemes, MSEs remain apprehensive whether they could continue with SSF in a sustainable manner. The take-up across informal sector schemes, and the self-employed schemes also remain sluggish.

MSEs contribute about 22 per cent to the national economy and employ about 1.8 million people.

Chairperson of Cottage and Small Industry Committee at the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), Narendra Kumar Khadka, said that in the current economic situation and stringent policies, it is not easy for the employers to ensure the sustainability of contribution-based social security.

"The micro and small enterprises are between compulsion and understanding in terms of executing the social security provisions. We need to find a middle ground to support the employers and facilitate the employees," he said.

According to him, the FNCCI is working on it through a committee led by the Ministry of Labour, Employment and Social Security, Social Security Fund (MoLESS) to implement the National Action Plan on Formalization with technical assistance from the International Labour Organization (ILO) which is promoting the registration of MSEs into SSF.

The Contribution-Based Social Security Act 2017 envisions all business establishments – both in formal and informal sectors – as well as non-profit sector institutions, and individuals including those in foreign employment to be included in the system.

According to the law, the employee contributes 11 per cent and the employer puts up 20 percent making it 31 per cent of the basic salary for formal schemes. The informal sector worker schemes have 11 per cent of the workers and 9.37 per cent from the local government while self-employed schemes see the full 31 per cent contributed from income.

The benefits on offer include medical treatment and health benefit, and various protections like maternity, accident, incapacity, old age, dependent family and unemployment. Such schemes ensure protection for both employers and workers, enhancing productivity and promoting employment security.

However, in case of failure to deposit the contribution within 15 days after the end of each month may result in a 10 per cent interest charge on the overdue amount. However, there is a clause in the law whereby the employer can register an application to the SSF to deposit the money within 30 days if there are plausible reasons that the situation was beyond their control.

If the non-compliance continued beyond the period agreed by the SSF, it can write to the concerned authorities to freeze the bank account, moveable and immoveable assets of the concerned individuals or institutions, suspend or stop the rebate facility entitled by law and suspend their permit or license, and freeze the passport of the persons concerned.

These provisions have forced the MSMEs, many of which lack business sustainability plan, think twice before joining the SSF.

The SSF has estimates that out of 21,031 economic establishments registered with the Fund, 3,000 (about 14 per cent) are MSEs. Its collections had reached Rs. 86.93 billion in contribution till Wednesday 23 July 2025 and paid Rs. 15.79 billion against the claims for medical and health treatment, accident and disability, dependent family protection and retirement facility.

 

MSEs' possibility of joining SSF

A sample survey on micro and small enterprise contribution capacity has now completed by the MoLESS led the committee in charge of implementing the national action plan on formalization.

On the demand side, it was found that nearly half of the non-contributing enterprises demonstrated good financial health, suggesting the potential to participate in SSF. Also, many MSEs lacked proper bookkeeping, with some even lacking bank accounts in the name of the enterprise, which calls for financial literacy and business management support. Interestingly, it was found that there was a segment of unregistered businesses that could join SSF, and in cases unaware of the different formal, informal sector and self-employed schemes on offer.

On the supply side, a need to consider subsidies, financed through tax mechanisms or redistribution though carefully designed to ensure sustainability and avoid creating disincentives for MSE formalisation or business growth was found.

Spokesperson for the SSF, Krishna Adhikari, has made a primary assessment that there is a possibility to include all the MCSEs in the social security scheme.

"We found that joining the SSF may not be a financial burden to the enterprises since it entails other various benefits, relieves the employers from the potential extra expenses on health and other areas while employees could be more motivated," he said.

Yet, there is a need for intensive campaign for information, awareness and education to micro, and small entrepreneurs to attract them to the scheme.

Meanwhile, the FNCCI together with MoLESS, SSF and other members of the committee with technical assistance from the ILO, and the European Union United Nations Empowered Women Prosperous Nepal programme has begun implementing a targeted awareness programme based on the findings.

In Nepal, micro enterprises are businesses with fixed assets of up to Rs. 2 million and employ up to nine persons with direct involvement of the investor. Small enterprises are the businesses with fixed assets ranging between Rs. 2 million and Rs. 50 million employing between 10 and 49 persons. Similarly, medium enterprises have fixed assets between Rs. 50 million and Rs. 150 million and employ between 50 and 249 persons. These investments are excluding the land and buildings. 

Published in The Rising Nepal daily on 25 July 2025.

Contribution-based social security scheme being made mandatory

 Kathmandu, July 4

The government is set to introduce a mandatory contribution-based social security scheme for all government employees from the upcoming fiscal year 2025/26. This significant move, outlined in a recent directive from the Ministry of Finance (MoF) aims to provide long-term financial security and benefits to civil servants.

The directive issued on Friday follows a decision made by the Deputy Prime Minister and Minister for Finance on the same day. It mandates that all newly appointed government employees from the next fiscal year will be brought under the purview of the contribution-based social security system.

Existing employees who were not previously covered by a social security scheme will also be integrated into this new system. The MoF has requested relevant ministries, commissions, institutes, boards, committees, and other governmental bodies to make the necessary arrangements for the effective implementation of the scheme.

Likewise, the directive seeks information on the liabilities that may arise due to the non-implementation of the contribution-based social security scheme for employees not currently covered.

This initiative is a continuation of the government's efforts to expand social security coverage across the country, building on the success of the 'Contribution-Based Social Security Act, 2074' and the 'Social Security Regulations, 2075', which have been in effect for employees in the private sector since 2018.

The government has affirmed its commitment to implementing a comprehensive social security system for all citizens, according to the statement issued by the MoF.

Published in The Rising Nepal daily on 5 July 2025.   

Govt is preparing to rescue Nepali workers from conlict zones: Minister Bhandari

Kathmandu, June 20

Labour, Employment and Social Security Minister Sarat Singh Bhandari has said that the government is fully committed to ensuring the safety, dignity, and rights of Nepali workers.

Addressing the Multi-stakeholder Policy Dialogue on 'Trade and human rights in the context of labour migration, gender equality and climate change' held in Kathmandu on Friday, Minister Bhandari presented the government’s active engagement and future plans regarding the protection of Nepali workers abroad.

Informing that he recently returned from Geneva after representing Nepal at the 113^th International Labour Conference, he mentioned that discussions with international organisations working in the labour and migration sectors were positive.

Talking about the interconnection between trade, migration, and human rights, Minister Bhandari emphasised that protecting workers' human rights through responsible business practices is the government’s top priority.

He reiterated the government’s policy of zero tolerance towards the exploitation and discrimination of Nepali workers.

According to him, foreign employment is not merely a source of income but also a matter of dignity and rights for workers. "Our male and female workers are making significant contributions to the development of destination countries. These countries must act in line with the spirit of the Global Compact to ensure safe, orderly, and regular migration," he said.

Minister Bhandari also informed that the ministry is preparing for emergency rescue operations concerning Nepali citizens currently in conflict zones. "Many Nepalis are spending nights in bomb shelters. Should the situation escalate further, the government is ready for rescue operations," he said.

According to a statement issued by the Ministry of Labour, Employment and Social Security (MoLESS), he further mentioned ongoing efforts to regularise hundreds of thousands of Nepalis who are currently living illegally in various countries, adding that special priority is being given to the safety of female workers.

He also stressed the need for in-depth discussions on how climate change is affecting labour migration. He informed that the MoLESS has incorporated climate issues into all of its programmes.

Reaffirming the government’s commitment to protecting human rights and ensuring the dignity of workers, Minister Bhandari said, "We will not compromise on the protection of human rights."

Published in The Rising Nepal daily on 21 June 2025. 

PM announces plan to expand scope of social security

 Kathmandu, Nov. 26

Prime Minister KP Sharma Oli has announced plans to expand the scope of Nepal's social security programme.

Addressing an event organised by the Social Security Fund (SSF) to mark the 7^th Social Security Day on Tuesday, he said that the contributors' children will also benefit from the fund within 90 days from now and contributors requiring medical treatment costing over Rs. 100,000 will receive 50 per cent of the expenses from the SSF.

Reiterating the commitment of the government to constitutional provisions and the fundamental rights of people, PM Oli reaffirmed its responsibility to transform Nepal into a modern, developed, and prosperous nation, free from poverty and backwardness.

The SSF was launched in 2018 during the previous tenure of PM Oli.

Meanwhile, the Prime Minister emphasised the need to draft innovative policies to create attractive employment opportunities and bring about an agricultural revolution. Speaking at another event organised by the General Federation of Nepalese Trade Unions (GEFONT), he said that increasing production and productivity was key to achieving equitable distribution and sustainable progress.

PM Oli, who is also the Chair of the CPN-UML party, underlined the party’s focus on action over rhetoric. He credited GEFONT for spearheading Nepal's successful labour movement, which inspired the launch of social security programmes.

Likewise, speaking at the event organised by the SSF, the Non-Resident Nepali Association (NRNA)'s President Dr. Badri KC said that the government failed to introduce concrete plans to include migrant workers and those in informal sectors abroad within the social security net.

He pointed out that while efforts were made three years ago to incorporate more workers into the Fund, little progress has been achieved. "Currently, the fund is perceived as a mandatory pre-departure requirement rather than a meaningful programme for the migrant workers. Out of over five million Nepalis working abroad, only 1.2 million are enrolled, and even fewer regularly contribute," he said.

Dr. KC stressed the need for effective implementation and awareness campaigns to help workers understand the benefits of the fund. "Establishing a fund is not enough; ensuring its effective execution and informing workers about its advantages is crucial," he stated. 

Published in The Rising Nepal daily on 27 November 2024.  

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.   

Govt unveils Rs. 1.79 trillion annual budget for 2022/23

 Kathmandu, May 29

Finance Minister Janardan Sharma Prabhakar announced a budget of Rs. 1793.83 billion for the upcoming Fiscal Year 2022/23 with priority to agriculture, poverty alleviation and employment generation.

The budget size is larger by 9.86 per cent compared to that of the current FY 2021/22. But its 16 per cent larger than the adjusted figures of the last year's budget. Through the replacement bill 2021/22, which was endorsed by the parliament two months after the beginning of the fiscal year, FM Sharma had announced the budget of Rs. 1632.82 billion. It was adjusted to Rs. 1546.2 billion in the mid-term review.

Speaking at the joint session of the Federal Parliament, FM Sharma informed that he allocated Rs. 753.4 billion for recurrent expenditure, Rs. 380.3 billion for capital spending and Rs. 230.2 for financing. These allocations comprise of 42 per cent, 21.2 per cent and 12.8 per cent respectively. Likewise, Rs. 429.8 billion (24 per cent) is allocated for financial transfer to the provinces and local levels.

Although the size of estimated expenditure for the next year has increased, the capital budget has not been increased significantly – it has seen an increase of only Rs. 2.3 billion compared to this year's Rs. 378 billion.

To finance these expenditures, FM Sharma has proposed to raise Rs. 1240.1 billion in revenues and Rs. 55.4 billion from foreign grants. Even after that, the size of budget deficit would be Rs. 498.2 billion which is to be fulfilled from foreign loan and domestic borrowing – Rs. 242.2 billion and 256 billion respectively.

 

Transformation of agriculture

The budget endorses the policy for the transformation of agriculture to increase production and create employment, promotion of export and replacement of imports, creation of self-reliant economy and end of absolute poverty.

In numbers, the government has put an 'ambitious' target to decrease imports of rice, maize, wheat, vegetables and fruits by 30 per cent, and imports of other goods by 20 per cent over a year's period.

It also aims at doubling the exports and creating trade balance in the next five years, increase decent jobs by 30 per cent in a year, provide housing to landless Dalits, and pull 800,000 citizens out of absolute poverty.

Former finance ministers and economists said that it would be challenging for the government to manage the resources and meet the expenditure targets. In the current year, the government's income amounts to Rs. 954.3 billion including grants in 10.5 months – it is 76.9 per cent of the total target. But it could spend only 58.6 per cent of the total budget allocation in the same period.

 

Major allocations

The Ministry of Education, Science and Technology (MoEST), Ministry of Home Affairs (MoHA) and Ministry of Physical Infrastructure and Transport (MoPIT) have received the largest allocations of the budget.

These three ministries combined take about 31.15 per cent of the total budget.

Education Ministry has received Rs. 196.3 billion - 10.95 per cent of the total expenditure estimates, Home Ministry Rs. 185.9 billion or 10.37 per cent, and Infrastructure Ministry Rs. 176.3 billion – 9.83 per cent.

Other favourites of the next year's budget are Ministry of Health, Ministry of Agriculture and Livestock Development, Ministry of Defense, and Ministry of Urban Development. Health Ministry received 5.75 per cent (Rs. 103 billion) allocation, Agriculture Ministry 3.34 per cent (Rs. 59.8 billion), and Defense Ministry and Urban Ministry received 3.07 per cent (55 billion) each.

Other ministries in the top ten list of the largest budget allocations are Ministry of Finance (2.39 per cent), Ministry of Water Supply (2.09 per cent), and Ministry of Federal Affairs and General Administration (2.06 per cent).

On the contrary, according to the budget speech, Ministry of Law, Justice and Parliamentary Affairs received only 0.05 per cent of the total budget (Rs. 886 million), Ministry of Women, Children and Social Welfare 0.10 per cent (Rs. 1.7 billion), Ministry of Youth and Sports 0.18 billion (Rs. 3.2 billion), and Ministry of Foreign Affairs 0.33 per cent (Rs. 5.8 billion).

 

Increasing budget efficiency

Against the backdrop of poor budget spending in the past several years and finance ministers' commitment to address the challenge, Finance Minister Sharma said that new policy and management reforms would be made to increase the effectiveness of capital expenditure.

"Mobilisation of capital budget is hit by structural and procedural problems, lack of project preparedness and integrated law for project implementation, poor utilisation of project bank, tender management and governance," he said.

He said that the two-shift working provision would be implemented and project monitoring would be made effective. Time to complete project would be considered as an important indicator in tender evaluation.

Similarly, process of environment impact assessment would be finalised rapidly. Budget allocated to the national pride projects can't be transferred to any projects other than the pride programmes. The budget also has a programme to integrate various funds managed by the government ministries and other agencies.

 

Social security boost

FM Sharma has brought down the eligibility age for the senior citizen's allowance to 68 years from existing 70 years. Senior citizens receive allowance of Rs. 4000 a month. However, he said that the government would honour those who announce not to take the facility.

He reiterated the previous policy of integrating various social security schemes. Meanwhile, the funds of the Social Security Fund will be utilised for the treatment of the workers, education of their children and insurance of their families. The funds will also be mobilised to business and vocational training, as well as infrastructure investment.

About Rs. 134 billion is allocated for social security programmes for senior citizens, single women, people with disability, Dalit senior citizens, minorities on the verge of extinction, children under 5 years of age in 25 districts with lowest Human Development Index, and Dalit children.

Published in The Rising Nepal daily on 30 May 2022. 

Participation in Social Security witnesses slow growth

 Fund prepares to amend pension scheme

 Kathmandu, Nov. 3

The Social Security Fund (SSF) has witnessed a sluggish growth in participation of the private sector employers in the social security of their employees.

About 12,876 employer are registered with the SSF by Tuesday. The number of companies that reached the fund in November end last year was 11,669. Likewise, the number of contributors has reached 178,196 from 128,101 some 11 months earlier. The started functioning from mid-July last year.  

Bagmati State has the highest number of employers and contributors -- 8,705 and 133,706 respectively. Likewise, State 1 has 1,860 enterprises and 17,672 contributers. Karnali has only 131 employers and 447 employees registered with the SSF.

State 2 has 13,180 employees from 518 enterprises registered with the fund, Gandaki 6,887 contributors of 923 companies, Lumbini 5,656 contributors of 923 companies and Sudurpaschim 646 employees of 145 institutions.

The employees have contributed Rs. 2.94 billion to the fund so far while the latter has paid for medical treatment and maternity protection facility to 430 contributors, accident and disability protection to 34, dependent family protection to 15 and gratuity to 23 employees.

It has disbursed about Rs. 11 million for these claims.

Given that about 2.4 million employees and about 450,000 enterprises are in the formal sector, the number of participation in the social security is still not encouraging.

As per the Economic Census 2018, there were 922,445 business institutions in Nepal by April 2018 and number of employees stood at 3.4 million. But, half of the enterprises, especially the cottage and small industries, were not registered with the government agencies.

However, the SSF said that the numbers were encouraging as even amidst the COVID-19 pandemic, the registration of employers and contributors was gradually increasing.

“There is a growth both in terms of contributors as well as the amount contributed to the fund. However, the growth was gradual in some months in the past,” said Kapil Mani Gyawali, Executive Director of the Fund.

“Stakeholders have requested to amend the provisions of the schemes which will be addressed within a month,” he added.

The contributors have been demanding to change the procedures of the pension scheme so that they could use their money even before its maturity. This scheme absorbs the largest portion of the contributed amount.

It has 28.33 per cent share in 31 per cent total contribution.

Gyawali said that the change was an ongoing process and genuine demands and suggestions of the stakeholders would be incorporated in the scheme.

As per the policy, the employer should contribute 20 per cent equal to the salary of their employees and the latter should deposit 11 per cent from its basic salary. The registered employee will get the facility of medical treatment, health and maternity protection, accident and disability protection and dependent family protection, and pension.

Published in The Rising Nepal daily on 4 November 2020. 

SSF has 100k contributors in four months

Kathmandu, Dec. 3

With the growing support from the private sector companies and employees, about 100,000 new contributors have been registered at the Social Security Fund (SSF) in the last four months.


The number of contributors has jumped to 128,101 from about 30,000 in July end, and the number of companies has reached 11,669.


Since its launch in November last year, the SSF had been trying to attract the private sector companies and employees to sign up its contributory-based social security plan.


Confusion about the scheme in the initial days caused demotivation on the part of the private sector companies and employees, but awareness campaigns by the SSF seem to have cleared the confusion.

"We have been running awareness campaigns so far which is successful in creating positive vibes. The SSF has not yet launched efforts to promote the scheme and incentivise it," said Executive Director of the SSF Kapil Mani Gyawali.

"The fund has just received a dedicated team only from this week, and I am hopeful that the results will be even better in the next couple of months," he added.


The fund has extended the deadline to enrol for the scheme till November end. Earlier the deadline was set for mid-October 2019.


Major private sector organisations like the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), Nepal Bankers' Association and employee suppliers have decided to go with the scheme. The CNI and Private and Boarding Schools' Organisation of Nepal (PABSON) have already sent circular to their member companies to join the scheme while the FNCCI and NBA have made a policy decision to sign up with it.


However, given the total number of employees of about 2.4 million in the formal sector, the number of companies and employees is a small portion. As the government has launched schemes to formalise the informal business companies, the number of employees will go up in the years to come.


According to the Economic Census 2018, there were 922,445 business enterprises as of April 2018 and the number of persons engaged was 3.4 million. But half of the enterprises were not registered with the government.


The SSF is planning to create strong collaborations with the business registration agencies to facilitate more companies to join the social security scheme. "We have initiated a discussion with the Company Registrar's Office and Department of Industry," said Gyawali.


After the enrolment in the scheme, the employers have to contribute 20 per cent equal to the salary of their staff and deduct 11 per cent from the latter's basic salary and deposit it to the fund.


The registered employee is entitled of medical treatment, health and maternity protection, accident and disability protection and dependent family protection and pension.


Two employees' families have started receiving pensions as per the dependent family protection scheme following the death of the employee.


About 1,838 companies from State One, 460 from State Two, 7,772 from State Three, 531 from Gandaki, 828 from State Five, 118 from Karnali and 122 from Sudurpaschim are registered with the SSF. State 3 has the highest number of employees – 92,791- enrolled with the SSF. These employees have contributed Rs. 224.9 million to the fund. The scheme is expanded to 69 districts.

Published in The Rising Nepal daily on 4 December 2019. 

Two million houses needed to fulfill right to housing

Kathmandu, July 22

Minister for Finance Dr. Yuba Raj Khatiwada said on Monday that the government had to build about 2 million houses if the right to housing was to be fulfilled as provisioned in the Constitution.

"Decent housing is included in the Constitution as the fundamental right of every citizen. But it is a distant dream given the limited resources currently available," he said while addressing the inaugural ceremony of conference on 'The path to universal social protection in Nepal: the role of integration and harmonisation'.

The government had launched Janata Awas Programme in 2010 to provide shelter to the deprived communities, Dalits and people in vulnerable conditions.

Social protection is a fundamental right of every citizen in the country as it is enshrined in our Constitution so it’s a constitutional process, not political, said the Minister.

FM Dr. Khatiwada said that the government needed to increase its institutional capacity and resource mobilisation to fulfil the constitutional demands of social protection.

However, he maintained that work and employment were the best and sustainable ways of social protection while other measures were only for those who were unable to join the labour market.

"Enhancing the capability of every citizen in the society is the main aim of the government. People must be benefitted in a socially justified way," he said.

Dr. Khatiwada said that social protection was a powerful instrument of the implementation of the Sustainable Development Goals (SDGs).

"I believe that the income of poorer households should grow faster than the richer ones. For this, you have to invest in the rural infrastructure and job creation," he said.

According to him, the government is working to make the country a welfare state in medium term.

Old-age pension, youth scholarships, child grant, decent housing were some of the social protection schemes in practice in Nepal.

Minister Dr. Khatiwada said that there was need of consolidating all the schemes to eliminate the possibility of duplication and mulling to make them sustainable.

Jasmine Rajbhandary, Senior Social Protection Specialist at the World Bank, said that the establishment of unique beneficiary identification system and integrated database were the major challenges in social protection practice in the country.

Stating that social protection was needed to address inclusion, poverty and resilience, she maintained that the focus should be shifted to establishing an integrated policy framework, harmonising system, enhancing delivery and improving the design.

About 35 per cent Nepalis are covered by the social protection schemes like old age pension, single women pension, disability grant, child grant, mother protection and earthquake relief.

The seminar was jointly organised by the government and German Development Agency (GIZ).

Published in The Rising Nepal daily on 23 July 2019.