Govt to include workers in informal sector, self-employed in social security scheme

KATHMANDU: The government has planned to extend the coverage of social security schemes to workers in the informal sector and self-employed persons.

The Social Security Fund (SSF) will enlist this section of workers in the scheme through an official event to be organised on coming August 16.

SSF Spokesperson Bibek Panthi shared that the workers in the informal sector and self-employed persons should contribute at least 20.37% of their basic wage set by the government while the government adds 9.37%. According to Panthi, 11% of the contributed amount will be from the concerned contributor and the remaining 9.37% from the government.

The amount to be deposited on behalf of the government could be deposited by any of the three-tier governments — federal, provincial or local.

The government has fixed Rs 15,000 as a minimum wage for workers in the informal sector out of which Rs 9,385 is the basic wage and Rs 5,615 as dearness allowances.

According to the provision in the Social Security Scheme Operating Procedure-2079 BS, the workers in the informal sector could contribute 20.37% of their basic salary to the scheme. The Fund is planning to introduce a host of programmes such as medical treatment, health and maternity, accident and disability, dependent family security plan and old-age security plan among others for the informal sector workers and self-employed ones, informed Panthi.

Those enlisted in the scheme from the upcoming programme will receive Rs 100,000 annually for medical treatment in the designated hospital. In case of sickness and pregnancy, 60% of the basic salary will be provided to the contributors, it was shared.

Furthermore, the beneficiary will get Rs 700,000 in case of an accident and at least 60% of the basic salary in case of suffering a disability.

The contributors however should have worked at least nine months to get medical, accident and dependent family facilities as well as work of at least 180 months and be above 60 years to get old-age facilities provided by the SSF.

Workers in the informal sector and self-employed persons could be enrolled in the social security scheme by filing in application in the fund, it is said.

Those self-employed persons willing to be enrolled in the scheme have to submit photocopy of their citizenship certificate, certificate of business if registered, recommendation from ward office, amount to be contributed monthly, PAN or tax registration certificate and contact number for the application. 

Similarly, workers of the informal sector have to submit photocopy of their citizenship certificate, their working sectors (agriculture, transport, construction and domestic help), a recommendation letter from the ward office, the work procedure read.

The Fund is prepared to forward the scheme as 'piloting'. Spokesperson Panthi said a discussion with local levels was underway to increase the participation of workers in the scheme.

The SSF has made agreement with Phedikhola Rural Municipality of Syangja district to include workers in the informal sector and self-employed persons in the social security scheme. Preparation is underway to make agreement with local levels of Gorkha, Baglung, Bardiya and other districts, he shared.