Informal sector workers coming under social security scheme

The government has begun incorporating workers in the informal sectors and those self-employed to the social security scheme since August 17.

The Social Security Fund had already brought those in the formal sector and in foreign employment under the scheme. The trade unions actively working in the country were lobbying for long to introduce the scheme for the informal sector's workers engaged in agriculture, transportation, construction and domestic works, among others.

Nepal Trade Union Congress' Chairperson Yogendra Kunwar remarked that it was a welcome development that the workers in the informal sector and self-employed ones were brought under the scheme. He expressed, "The workers working in corporation or formal sectors were receiving facilities such as gratuity and pension, but those in the informal sector were deprived of such schemes. Now, the path for them to come under the social security scheme has been opened."

However, there are doubts regarding implementation of the scheme in lack of clear commitment on the part of the government. "The government is yet to make a firm commitment regarding the amount to be contributed on the behalf of over 5 millions of informal sector workers," he pointed out, highlighting the need for policy and programmatic preparations for the successful implementation of the programme. 

 Meanwhile, Joint Secretary at the Ministry of Labour, Danduraj Ghimire, said Nepal is ahead of India and Bangladesh in terms of implementation of social security schemes. "We have started covering workers in formal, informal, self-employment and those in foreign jobs under the scheme." The scheme launched by the Fund is on a par with that of developed countries, it has been said.

So far 749,945 workers (440,161 in the formal sector and 309,765 those in foreign employment) have been associated with the scheme, according to the Fund.

Under various facilities, the Fund has so far made the payments of Rs 5.64 billion to the contributors. A total of 97,815 contributors have been registered with the Fund, and from them, Rs 40.6 billion has been collected in contributions.

To become a part of the scheme, workers in the informal sector should contribute 20.37 percent of their salaries as set by the government and the people at self-employment should contribute 31 percent, said the Fund's Spokesperson Bibek Panthi.

On part of the workers in the informal sector, the respective workers contribute 11 percent of their salaries while the remaining 9.37 is deposited by the government. ----