Government unveils Social Security Scheme; PM says the day marks beginning of new era

Social SecurityKathmandu / Nov 27: Prime Minister KP Sharma Oli has unveiled the contribution-based social security scheme for formal sector workers amidst a special programme in the capital city today.

According to the Ministry of Labour, Employment and Social Security, the scheme will compulsorily be applied for formal sector workers and the government will soon launch the scheme for informal sector workers as well.

On the occasion, Prime Minister Oli said, “It was important to strengthen the system in which the state is accountable to its people. This scheme has been introduced to that end.” He added that introducing the social security scheme would add a new dimension to the approach through which labour would be respected and everyone would be encouraged to work.

The Prime Minister further stated that people of all ages and categories would be included in the scheme and no-one would be excluded, guaranteeing security to all.

According to the scheme, from May 22, private sector employees will have to mandatorily contribute 11 per cent of their basic salary to the fund, while employers will have to contribute another 20 per cent of the employees’ basic salary.

Once these contributions are made, employees will be entitled to compensation if they lose a job or cannot attend the workplace because of pregnancy, illness or accident.

As per the scheme, of the total fund collected, SSF will allocate 3.22 per cent for medical treatment, health and maternity security, and 4.52 per cent for accident and disability security. Likewise, it will allot 0.87 per cent for dependent family security and 91.39 per cent for old age security.

As per law, both employers and employees will have to mandatorily deposit their instalment for the scheme and it is applicable for all types of workers. The scheme is in accordance with the Contribution-based Social Security Regulation.

The unveiling of the scheme coincides with the first Social Security Day being marked today.

Social Security Day marks beginning of new era : PM Oli

Meanwhile, Prime Minister KP Sharma Oli has said that the new social security scheme will benefit to people from all walks of life of the society.

In a video message today on the occasion of the ‘First Social Security Day’, Prime Minister Oli said that the implementation of the social security sheme marks the beginning of the new era.

Oli said that the scheme will incorporate aspirations of haves and have-nots, employed or unemployed and those losing jobs as well. “I would like to recall that I had expressed commitment to introduce the new social security scheme during my erstwhile tenure,” he added.

The prime minister expressed the hope that the new system will respect the value of labor while encouraging everyone to devote to labor thereby contributing to build modern civilized society.

Prime Minister Oli will launch the social security scheme amid a function today in the capital.

In a separate message, Minister for Labor, Employment and Social Security Gokarna Bista asserted that the social security scheme is a matter of pride to the nation and the people. He has urged everyone to be sincere in implementing the security scheme.

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