The Social Security Fund (SSF) launched by the government five years ago has collected around Rs 44.86 billion from its contributors.
A total of 9, 30,844 contributors have deposited the amount since the inception of the contribution-based social security scheme of the government. Out of the total amount collected by the SSF, Rs 6.45 billion have been paid to the contributors for medical treatment and various other facilities.
The private sector has requested the government to invest the funds collected by the SSF in the productive sector such as infrastructural development.
During the 6th Social Security Day organised by the SSF in Kathmandu on Monday, Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Rajesh Kumar Agrawal, president of the Confederation of Nepalese Industries (CNI), and Rajendra Malla, president of Nepal Chamber of Commerce, emphasized the need to mobilize funds in areas that generate employment.
The SSF has been keeping a large part of the amount deposited by the contributors in fixed deposits of banks. FNCCI President Dhakal said that the number of people joining the SSF in five years since its establishment is encouraging and said that the money collected in the fund should be invested in areas that create jobs.
“Instead of keeping this fund in fixed deposits, let’s amend the procedure so that it can be invested in the productive sector and infrastructural development that create jobs,” he said.
CNI President Agrawal also said that if the funds are mobilized in the productive sector and infrastructure development, it will help in the development of the economy.
NCC President Malla emphasized that the capital should be mobilized effectively rather than keeping it in fixed deposits. “Let’s invest in infrastructure development and hydropower. Let’s make a capital move. There is also a need for a program to further encourage employers and contributors,” he said.
The SSF started the social security program for workers in the formal sector on July 17, 2019, while it incorporated Nepali migrant workers in foreign employment on March 22, 2023. Likewise, informal sector workers were included in the SSF from August 16, 2023. So far, 4,62,408 workers in the formal sector and 468,471 workers in foreign employment have joined the SSF.
During the program, Prime Minister Pushpa Kamal Dahal urged the employers to join the fund and said that arrangements will be made to provide health treatment facilities to the family members of the contributors.
However, only 19,439 employers out of the target of 30,000 employers registered as of the fiscal year 2022/23 have joined the SSF.
According to the SSF, more than 18,000 employers and more than 900,000 contributors have joined the SSF.
The government had set a target of registering 500,000 contributors by the year 2022/23. The fund stated that they met the target on time. By November 24, the number of contributors has reached 9,28,493.
The figure of contributors also includes those on foreign employment. Half of the number of those who joined the SSF are currently working abroad. It has been a year since the government made arrangements to integrate workers who go for foreign employment.
The contribution-based Social Security Fund Act allows formal and informal sector workers and self-employed individuals to participate in the social security scheme, broadening the fund’s scope.
