The government has started a new contribution-based social security scheme in the country starting from Tuesday.
Prime Minister (PM) KP Sharma Oli has announced implementation of the new social security program in the country amidst a program organized at the Nepal Academy in Kamladi in the afternoon.
Almost 3.50 million workers in the country will get four kinds of benefits from the new scheme.
Health insurance and maternity security programs
Contributing workers can get up to Rs 100,000 every year for treatment in the hospital. The amount will be deposited directly to the hospital once one provides evidence of getting treatment. The contributors can get up to Rs 25,000 a year if they do not go to hospital and seek service from the doctors at home.
The social security fund will provide minimum salary of a month (Rs 13,450 at the current level) if the female contributor or wife of a male contributor delivers a baby.
The workers currently get sick leave of 12 days a year. The fund will pay 60 percent of the minimum salary for the extra days the workers have to stay for sick leave.
The new mothers will get leave of 60 days. The fund will pay 60 percent of the minimum salary for the extra days the new mother takes leave not exceeding Rs 25,000.
The fund will pay 60 percent of the minimum salary for 60 and 12 days for new mothers and sick persons respectively if they deliver a baby or fall ill when they do not have a job.
One must have contributed for at least six months to be eligible for the benefits to sick persons. One must be in job for 18 months and contribute for 12 months to be eligible for the benefits for new mothers.
Accident and disability security
Workers will get different benefits for accidents occurring at the work place or outside of work as per this scheme. The fund will bear all expenses for the accidents occurring at the work place and up to Rs 700,000 for that occurring outside.
The fund will also bear all the expenses for treatment of diseases one gets while at the job. One must contribute for at least two years to be eligible for this benefit.
The fund will provide 60 percent of minimum salary to the workers for the period until they rejoin work after an accident.
The workers will get pension on the basis of disability if they become disabled after an accident. Sixty percent of the amount the worker is paid per month at the time of accident is considered the full scale for that. The fund will provide the balance amount if the worker does not earn the new full scale after returning to work after an accident. The worker will be eligible for pension at the rate of new full scale (60 % of the salary at the time of accident) every month on not being able to work at all after an accident.
Workers, however, will not be eligible for the benefits from the fund if they are compensated for accidents due to natural disasters or road accidents through insurance or other system.
Security of dependent family
The spouse of contributor will get life-long pension at 60 percent of the amount the worker is paid per month at the time of death if the contributor dies. Forty percent of the salary will be provided for educational expenses if the dead worker has a kid younger than 18 years. Sixty percent of the salary will be distributed equally among the kids if the dead worker has more than one kid.
The worker’s parents will be provided a pension of 60 percent of the salary if the dead worker does not have a spouse or any kid.
Old-age security
Contributors will start to get pension after 60 years. They must contribute for at least 15 years to be eligible for pension.
The workers can choose to either withdraw the amount they have contributed to the fund or opt for a monthly pension. The contributor will get a monthly pension which will be calculated by dividing the total amount they have contributed by 180 or the total number of months the worker has contributed if the contribution is made for more than 15 years.
Workers and the employers will have to enroll for contribution-based security scheme to be eligible for all these benefits.
The employer will deduct 11 percent of the basic salary of the worker and make contribution of 20 percent of the basic salary of its own, and deposit the total of 31 percent of basic salary with the fund every month.
The scheme will be valid across the country.
Workers at the academy level will be eligible for social security scheme in the first round.
Registration of workers and employers in Kathmandu Valley has started from November 22 while it will start from December 1 in Province 3 outside the Valley, December 16 in Province 1, December 30 in Province 2, January 15, 2019 in Gandaki province and Province 5, and January 29 in Karnali and Far West provinces.
The employers must complete listing of workers within three months of their registration. Collection of contribution money starts after completion of listing and the schemes will be available after that.
