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.