November 28: More than 900,000 workers have contributed about Rs 45 billion to the contribution-based Social Security Fund (SSF) in five years since the government launched this social security scheme.

According to the SSF, it has collected Rs 44,85,11,00,000 from the contributors. The highest amount has been collected for the old age protection scheme. During the five years, SSF has collected Rs 37,35,71,46,000 under this scheme.

Likewise, Rs 1,29,27,00,000 have been collected for medical treatment under health and maternity scheme, Rs 2,48,62,00,000 for accident and disability protection scheme and dependent family protection scheme. The fund has earned a profit of Rs 2.17 billion by investing the collected amount.

The then Prime Minister KP Sharma Oli had launched the social security scheme five years ago announcing the beginning of a new era. Since then, more than 900,000 workers and 18,000 employers have joined the fund. This participation is less than expected. The government had set a target of registering 30,000 employers by the end of the fiscal year (FY) 2079/80.

According to the Nepal Labor Force Report 2017/18, there are 7.86 million workers in the domestic labor market of Nepal including 2.6 million workers in the formal sector and 4.4 million in the informal sector. Even now, a large number of banks and financial institutions have not participated in the Social Security Fund.

Last May, the fund had introduced a special plan to list informal sector workers as well as Nepalis working abroad and workers in the agricultural sector. Among them, 466,622 people who went for foreign employment have joined the fund.

Informal sector workers are yet to be included in the fund despite the announcement to include them.

Executive Director of Social Security Fund, Kabiraj Adhikari said that the fund is trying to cover all the workers by widening the scheme amid various obstacles.

Stakeholders have suggested the SSF to invest the amount collected from the contributors in the productive sector. Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry, said that instead of keeping the contributors money in fixed deposits of banks, the SSF should find suitable areas and invest it.

Binod Shrestha, chairman of the Federation of United Trade Unions, said that the contributors who do not contribute to the fund should be punished and the employers and workers who are affiliated to the fund should be given tax exemption based on their contribution.

Addressing a program organized on the occasion of the 6th Social Security Fund Day on Monday, Prime Minister Pushpa Kamal Dahal said that the SSF has started providing facilities to all the citizens at times of need.

On the occasion, Social Security Fund honored various institutions for their contribution. The fund honored Laxmi Sunrise Bank for engaging the most contributing workers from the banking, finance and insurance sectors. Laxmi Sunrise Bank ranked first from the financial sector by having the largest number of contributors from the financial sector to the fund. Its 1,409 employees are affiliated to the fund.

The SSF also honored Garuda Security Pvt Ltd from the human resource supply sector, Sprout Technology Services Pvt Ltd from the information technology and communication sector and Arihant Multifiber from the manufacturing sector.

Nobel Medical College and Teaching Hospital from the health and social work sector and Sipradi Trading, which sells Tata vehicles from the wholesale and retail sales sector, were also honored.

Likewise, Universal Institute of Advanced Studies and Research Center from the education sector and Infotech Services Pvt Ltd from other support sector were also recognized for their contribution.