Kathmandu, July 10
Private firms have gradually started participating in the contribution-based social security scheme unveiled by the government in January for formal sector workers.
According to the Social Security Fund (SSF), 3,495 firms have registered their details at the fund till today, while a number of firms have been registering themselves via the fund’s website.
Under this scheme, firms and their workers must register themselves at SSF within mid-July.
As per SSF, the highest number of registered firms, or 2, 255, are from Province 3, of which 1,492 are from the Kathmandu district.
Moreover, 1,189 firms have been registered from Province 1; 177 from Province 2; 126 from Gandaki Province; 135 from Province 5; 46 from Sudur Paschim Province and 26 from Karnali Province. Meanwhile, 532 firms have not mentioned their province.
As per the fund, most of the companies registered at SSF are liquor companies, hydropower firms, banks and financial institutions and different corporate houses.
In terms of sector-wise participation, 305 education firms are registered at the SSF. Similarly, 249 registered firms fall under health and social work sector, 212 bank and financial institutions, 191 hotels and restaurants, and 184 firms are from public administration sector.
“Around 15 to 20 firms are registering themselves online at the SSF every day,” said Shankar Nepal, director of SSF.
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.
According to the scheme, of the total fund collected, SSF will allocate 3.22 per cent as medical treatment, health and maternity security and 4.52 per cent as accident and disability security.
It will allot 0.87 per cent as dependent family security and 91.39 per cent as old age security.
A version of this article appears in print on July 11, 2019 of The Himalayan Times.