Federation of Nepalese Chambers of Commerce and Industry (FNCCI)

Of some 80‚000 companies operating in the country‚ hardly 500 firms have provided information about their staff

KATHMANDU: Even though the government has announced implementing social security schemes, preparatory activities indicate that the plans may not materialise this year. Despite efforts to collect relevant data in the past two years, the Social Security Fund (SSF) reportedly has been able to gather information of only around 50,000 employees till date.

Of some 80,000 companies that are estimated to be operating in the country, hardly 500 firms have provided information about their staff to enrol them for schemes. Similarly, the government is yet to come up with a legal framework that regulates social security issues.

In the budget for current fiscal year, the government has declared that seven different schemes of social security would be implemented by managing the records of SSF and preparing contributor’s biometric identity card. But, out of nine universal social security schemes to be provided to workers, only four schemes have been designed so far.

Although four packages are in ready position, SSF is yet to get the fund collected for implementation of those schemes and to also complete maintaining database of employees, according to Kebal Prasad Bhandari, executive director of SSF. Collecting the details of the workers and registering it in the SSF database is a must to make it possible to launch the schemes.

It is estimated that the government will be required to collect information of around two million employees for social security benefits plan. “Despite repeated calls, companies are not providing the details of their staff, which is causing the delay in implementing the schemes,” said Bhandari.

He added that companies may not be heeding to their calls since there are no rules in place that hold the firms responsible or enable the government to take action, if required.

Of late, SSF is working on a draft of Integrated Social Security Bill, which will work as an umbrella Act to regulate social security. The integrated law will replace the earlier proposed Social Security Fund Act and will also encompass workers from the informal sector. SSF is also undertaking discussions to explore the possibilities of including information regarding social security schemes beneficiaries in National Identity Card (NIC) instead of issuing a separate biometric card.

In absence of NIC, the government has stated in the budget that Electoral Identity Card (EIC) will be used to make the distribution of social security allowances effective. For the purpose of implementing the social security schemes, the government started collecting one per cent from the salary of government employees and private companies since fiscal year 2009-10. The amount collected so far has topped Rs 6.5 billion.

The four schemes that are ready for implementation are to cover workplace accidents, sickness, maternity and medical expenses. The Social Security Fund Management and Operation Regulation, 2011 has provision of nine social security benefits for the employees, which apart from the four mentioned, also includes schemes for unemployment, dependent, disabled, old-aged and family members.

Social security schemes unlikely soon