Govt announces social security scheme

This will narrow down gap in society: PM Oli

Kathmandu, Nov. 27:

The government has announced contribution-based social security schemes for the workers of all organised sectors.

Prime Minister KP Sharma Oli on Tuesday announced the scheme at a function organised in the Capital and said that the country was ushered into a new era with the new system that guaranteed welfare to all workers even when they lost the job.

The new programme includes pension or gratuity, workplace accident insurance, health check-up, maternal security plan, and various facilities of the dependents of the worker.

“With the announcement of this social security programme, the government would like to give a message to all that the state is not only a controlling institution but also a guardian of its citizens. It gives you security in good and bad times and offers fair salary for your labour,” Said PM Oli.

As per the work procedure of the Social Security Work Procedure, 2018, employees will contribute 11 per cent from their salary to the Social Security Fund, and the employers will send money equal to 20 per cent to the fund.

So, money equal to 31 per cent of a worker’s salary will be deposited into the fund and all the social security functions will be covered by the money. If there is any shortage of money, the government will contribute in the fund through the budget announcement.

The contributory social security programme will boost the confidence in both the employers and employees.

The Prime Minister recalled that the first-ever communist government had announced senior citizen welfare programme for the first time in the country about two and a half decades ago.

“That was a initiative for a new social system. We had announced the welfare scheme amidst criticisms that the government was distributing the tax-payers money and not following economic discipline,” he said.

Answering to the questions of critics he said that the government was among the working people and working to make their future better.

According to him, the move was to correct the culture to provide respect and money to government employees and neglect the workers of private sectors.

He said that Nepali society had been cooperative and cordial traditionally and supported those who were in need. People developed trust, barter system, service committee and welfare societies to help each other.

“These mechanisms are pushed to the corner in modern times and joint-families are broken into many nuclear families. We are at modern social transition and this new scheme will bridge the gap that is seen in our society,” said Oli.

The state gives equal treatment to all its citizens but it may vary according to their age group since a child needs care, education and health, youth needs opportunity and employment as per their qualification and skills, and adults and senior citizens need respect and security.

“Social security is not about distributing the money from the state coffers but to contribute to the coffer and support each other. Even a small contribution from each of us turns into a large amount if we work united,” said PM Oli.

He said that the country was in people’s democracy and the system was not limited to political and liberal rights. It is expanded to political, economic, social, cultural and other sectors of social life.

We are for the democracy with social justice and equity, he said.

Minister for Labour, Employment and Social Security Gokarna Bista said that the new scheme had created an environment where workers could work efficiently without worrying about their future and families, and employers could invest confidently.

“It has paved way for the secure future for the workers. It will bring many positive changes in the country. It will contribute to the economic growth of the country,” he said.

According to him, the government will observe Mangsir 11 every year as the Social Security Day.

He said that the scheme was developed and being implemented in full coordination with the employers and experts.

The private sector welcomed the new initiative and said that the effective implementation of the scheme was challenging.

“The scheme has come as a beginning of social transformation and the mobilisation of the fund will help to make the labour market more dynamic and decent,” said Bhawani Rana, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

She said that the employers had an important role to make the programme a success and urged to focus on better implementation of it.

President of Confederation of Nepalese Industries (CNI) Hari Bhakta Sharma said that it was a historic day and the scheme might contribute in increasing the productivity of the workers.

“In the coming 10 years, the Social Security Fund will be the largest fund in the country. So the government should give attention to utilising the money,” he said.

Vice-President of Nepal Chamber of Commerce Kamlesh Agrawal said that the fund could be mobilised in developing large infrastructure projects.

Published in The Rising Nepal daily on 28 November 2018.