194 firms register at Social Security Fund
Kathmandu, December 9
Firms have increasingly started participating in the contribution-based Social Security Scheme unveiled by the government almost two weeks back for formal sector workers.
According to the Social Security Fund (SSF), 194 firms have registered their details at the fund till Friday while dozens of firms have been registering themselves every day. Under this scheme, firms must register themselves at SSF within mid-March while they need to register the details of their workers by mid-June next year.
“Almost 15 firms are registering themselves at the SSF every day and the number is increasing,” informed Shyam Raj Adhikari, executive director of SSF.
Different firms including Jawalakhel Group of Industries, Kantipur Digital Corp, MAW Enterprises, Park Village Hotel, Raj Brewery, Asian Distillery, Universal Power Company Ltd, Himalayan Distillery, Helvetas, Sanima Mai Hydropower Ltd, Deurali Trade Links, Everest Insurance Company Ltd, CG Food Enterprises, CG Packaging Nepal, CG Brewery Ltd and CG Biotech Ltd, among others have registered their details at SSF.
Adhikari informed that firms can register their details either online via SSF’s website or at the fund’s office located in Babarmahal.
Under the contribution-based Social Security Scheme, private sector employees will have to contribute 11 per cent of their basic salary to the fund, while employers or firms will have to contribute another 20 per cent of the employees’ basic salary to the fund. If everything goes as planned, Social Security Fund will start collecting monthly instalments from June 22.
As per the scheme, of the total fund collected, SSF will allocate 3.22 per cent for medical treatment, health and maternity security and 4.52 per cent for accident and disability security. It will allot 0.87 per cent for dependent family security and 91.39 per cent for old age security.
In a bid to avail medical treatment under the scheme, the contributor must have deposited their instalment regularly in the Social Security Fund for at least six months; to avail health and maternity security, the contributor must have worked for 18 months and regularly deposited instalments for at least 12 months.
Similarly, accident and disability security can be availed by workers a day after they deposit their first instalment. Workers can also receive compensation if they are injured in the workplace or develop medical complications due to their work condition after they have worked for a minimum of two years and deposited all instalments on a regular basis.