Meeting with Social Security Fund Nepal

Overview of the Social Security Fund (SSF) Nepal

The Social Security Fund (SSF) was established under the Social Security Act of 2017 and serves as a vital component of Nepal's social protection system. The primary aim is to provide financial security through various benefits to workers and their families, focusing mainly on those in the formal sector.

Key Aims:

• The SSF aims to create a safety net for workers and their families to mitigate financial hardships resulting from significant life events such as illness, maternity, or retirement.

• The fund promotes compliance with labor laws by incentivizing both employers and employees to register their employment formally.

• The SSF is working toward gradually expanding its coverage to include informal sector workers.

• The fund focuses on effective management to ensure its long-term viability, allowing it to meet the needs of its beneficiaries.

Benefits:

The SSF offers a range of benefits designed to support workers (Implemented 8 out 9 branches of social security)

1. Medical care benefit,

2. Sickness benefit,

3. Employment injury benefits,

4. Maternity benefit,

5. Family benefit,

6. Invalidity benefit,

7. Survivors’ benefit

8. Old-age benefit,

9. Unemployment benefit (not yet)

Costs:

Contribution Rates:

• Employers: Approximately 11% of the employee's monthly salary.

• Employees: Roughly 10% of their own basic salary.

• Total Combined: About 21%

Employees must contribute to the SSF for a specific minimum period, usually between 6 months to a year, to access various benefits.

In the context of the SSF, the primary breadwinner or main provider within a household is eligible to register for the SSF if they are formally employed and contributing to the fund.

Key categories of individuals who can be insured by the SSF:

1. Formal Sector Employees:

2. Self-Employed Individuals:

• Certain self-employed individuals may also be eligible if they meet specific criteria set by the SSF.

1. Migrant Workers (outside of Nepal)

2. Registered Members:

• Any worker who is registered with the SSF and has fulfilled the necessary contribution requirements.

1. Different Occupation Sectors:

• Coverage is extended to various sectors including agriculture, industry, and services, as long as the employment is formal.

1. Employers:

• Employers who comply with the SSF registration and contribute to the fund on behalf of their employees.

Presented presentation by SSF:

More on Business Processes within SSF: Building a Customized Social Security System for Nepal: Overview and Development