Integrated social security law on horizon

  HIMALAYAN NEWS SERVICE

KATHMANDU: The government is working on a plan to bring an integrated legal framework for social security. It will replace the proposed Social Security Fund Act, include workers from informal sector, and cover other social security programmes being implemented by various government agencies.

As part of its preparation, Ministry of Labour and Employment (MoLE) has asked Social Security Fund (SSF) to prepare a draft of Integrated Social Security Bill. Amid increased expenses in the social security sans any visible results, the government in the budget announcement for the current fiscal year had also talked of bringing the Bill and presenting it to the Legislature-Parliament.

The plan is targeted at avoiding duplication in various social security programmes and providing returns to beneficiaries. MoLE official said that currently 13 ministries have been implementing 19 programmes related to social security. And so far, there is no rule regarding provisions of social security facility for those working in the informal sector. 

“We have envisaged covering all social security related issues in the integrated social security law as ensured by the interim constitution,” said Kebal Prasad Bhandari, executive director of SSF. He added the Bill will also incorporate provision of earlier proposed Social Security Fund Act that primarily focused on employees of formal sector.

“Women, labour, seniors, disabled, incapacitated and helpless citizens shall have the right to social security ...,” states the Interim Constitution 2007. Bhandari said that they will complete a draft of the Bill within a month and submit to MoLE for further review. After being finalised, it will be presented to the Parliament and get approved as the integrated Act of social security. 

Earlier, MoLE had tried to bring the integrated social security law through ordinance during the Khil Raj Regmi government. However, the plan did not materialise due to objection from employers’ organisations, according to MoLE. There are around 470,000 public and 283,000 private sector employees who are eligible to be enrolled for social security schemes. 

With huge number of workforce engaged in the informal sector, the new law has envisaged of making them beneficiary of social security schemes. An ILO report states that more than 70 per cent of economically active population of Nepal is engaged in the informal sector, including in agriculture, construction and service oriented businesses.

Each year, a huge chunk of the annual budget is being spent for social security, which includes pensions, scholarship programmes, and allowances for senior citizens, single women and victims of second peoples’ movement.

The budget for current fiscal year has allocated a total of Rs 55 billion for pension of former government employees and funding of various social security programmes.

- See more at: http://www.thehimalayantimes.com/fullNews.php?headline=Integrated++social+security+law+on+horizon&NewsID=422164&a=3#sthash.DLPGDBkc.dpuf