The social security scheme is an opportunity to channel remittances into the productive sectors
The government launched the social security scheme for Nepali migrant workers the other day, which should bring at least four million workers under its flap. There could be as many as seven million youths working abroad, most of them in Malaysia and the Gulf countries. The billions of dollars that they remit annually help sustain Nepal's import-based economy. Thus, it is only right that the government should do something for the migrant workers so that they have something to fall back on when they return home. Migrant workers who are employed by foreign companies as well as self-employed can register for the scheme initiated by the Social Security Fund (SSF). A host of organisations, from the Non-Resident Nepali Association (NRNA) and the Federation of Nepalese Chambers of Commerce and Industry to the trade unions, have already welcomed the scheme. Both the government and the NRNA with its vast network spanning 80 countries, among others, have the onus to convince the migrant Nepali workers to enroll with the social security scheme.
Under the scheme, those who are employed or self-employed overseas make a minimum monthly contribution of Rs 2,002, which is 21.33 per cent of the minimum basic salary established by the Nepal government. If they so wish, they can contribute a maximum of upto three times the basic salary. To make the scheme attrac-tive, those making timely and consistent contributions are entitled to a treatment expense of Rs 100,000 in the event of an accident and a monthly disability pension amounting to Rs 5,631.
The dependent family can also claim a monthlypension and an educational scholarship for the children.
The migrant workers can enroll with the social security scheme through the online system, while the government has made arrangements to collect the contributions from the Nepali banks and remittance office located overseas.
The social security scheme is an opportunity to channel remittances into the productive sectors, building infrastructure and creating jobs in the country.
Currently, only about 2 per cent of the remittance inflow goes into capital formation. The scheme should also contribute to expanding the social security coverage to 60 per cent of the country's population in some way as envisaged in the current 15th five year plan (2019-2024) while helping to curtail the government's ever increasing social security expenditure.
Social security expenditure currently accounts for 5.18 per cent of the country's total GDP and 12 per cent of the national budget. The government should be able to give assurances to the migrant workers that their contributions will stay safe and be available when they need them without any hassle. We've seen quite a few schemes in the past where the government tried to raise money for particular projects, but they lost steam mid-way. There was much hullabaloo over using the money of the Nepalis - mostly remittance - to utilise the country's water resources, but we don't hear about it anymore. Government policy should remain consistent regardless of change of government. The success of the SSF scheme will depend largely on how seriously successive governments and the NRNA can work together to promote it.
Citizenship racket
The Nepal Police have arrested a group of five racketeers who helped Tibetan refugees obtain Nepali citizenship certificate by forging documents necessary for the same. Preliminary investigation reveals that the Tibetan refugees obtained the Nepali citizenship from the Kathmandu District Administration Office (KDAO), which lies just a few hundred meters away from the Ministry of Home Affairs at Singha Durbar. Police have identified 10 Tibetans and have also held citizenships of 25 suspicious persons who have some links with the racketeers to ascertain the authenticity of their nationality. Police also suspect that one person called Krishna Bahadur Katwal, 47, of Jhapa, might have helped 500 foreigners, mostly Tibetans, obtain Nepali citizenship papers over a period of five years.
This is a serious issue tantamount to treason against the state. Police suspect that such a large number of foreigners would not have obtained Nepali citizenship papers without the knowledge of the officials at the KDAO. One racketeer used to pose himself as the father of four Tibetan refugees, who paid a hefty amount of money to him and the KDAO officials to obtain the Nepali citizenship paper. Police must focus its investigation on the KDAO officials.
A version of this article appears in the print on March 24, 2023, of The Himalayan Times.
