Workers in informal sector, self-employed to be covered by social security scheme

Kathmandu / Aug 12: The government is extending the coverage of the social security scheme to workers in the informal sector and self-employed persons.

The Social Security Fund is enlisting this section of workers in the scheme through an official event to be organized on coming August 16.

Fund’s Spokesperson Bibek Panthi shared that the workers in the informal sector and self-employed persons should contribute at least 20.37 per cent of their basic wage set by the government while the government adds 9.37 per cent. According to him, 11 per cent of the contributed amount will be from the concerned contributor and the remaining 9.37 per cent from the government.

The amount to be deposited on behalf of the government could be deposited by any of the three-tier governments (federal, provincial or local government).

The government has fixed Rs 15,000 as a minimum wage for workers in the informal sector out of which Rs 9,385 is basic wage while Rs 5,615 is dearness allowances.

According to the provision in the Social Security Scheme Operating Procedure-2079 BS, the workers in the informal sector could contribute 20.37 per cent of their basic salary to the scheme. The Fund is planning to introduce a host of programmes such as medical treatment, health and maternity, accident and disability, dependent family security plan and old-age security plan among others for the informal sector workers and self-employed ones, informed Spokesperson Panthi.

Those enlisted in the scheme from the upcoming programme would receive Rs 100,000 annually for medical treatment in the designated hospital. In case of sickness and pregnancy, 60 per cent of the basic salary would be provided to the contributors, it was shared.

Furthermore, the beneficiary would get Rs 700,000 in case of an accident and at least 60 per cent of the basic salary in case of receiving disability.

The contributors however should have worked at least nine months to get medical, accident and dependent family facilities as well as work of at least 180 months and be above 60 years to get old-age facilities provided by the Fund.

Workers of the informal sector and self-employed persons could be enrolled in the social security scheme by filing an application in the fund, it is said.

Those self-employed persons willing to be enrolled in the scheme have to submit a photocopy of their citizenship certificate, certificate of business if registered, recommendation from ward office, amount to be contributed monthly, PAN or tax registration certificate and contact number for the application.

Similarly, workers of the informal sector have to submit a photocopy of their citizenship certificate, their working sectors (agriculture, transport, construction and domestic help), and a recommendation letter from the ward office, which reads the work procedure.

The Fund is prepared to forward the scheme as ‘piloting’. Spokesperson Panthi said a discussion was underway at the local level to increase the participation of workers in the scheme.

The Fund has made an agreement with Phedikhola Rural Municipality of Syangja district to include workers in the informal sector and self-employed persons in the social security scheme. Preparation is underway to make an agreement with local levels of Gorkha, Baglung, Bardiya and other districts, he shared. RSS