Govt speeds up efforts to implement three social security schemes
KATHMANDU, OCT 23 -The Ministry of Labour and Transport Management has initiated preparations aiming to implement three social security schemes— workplace accident, reproduction health and health insurance for the industrial workers— within the current fiscal year.
Ministry officials say they have already prepared a preliminary draft of the Act guiding the social security schemes which will give a legal basis for the implementation of the programmes. They intensified drafting of the Act after the government incorporated this scheme in its immediate relief programme announced recently. The budget for the current fiscal year has also provisioned implementing these schemes within the year.
As per the schemes, industrial workers will be compensated from the social security fund if they meet with accident at workplace. They will also get maternity allowance and health insurance coverage.
Purna Chandra Bhattarai, officiating executive director at Social Security Fund Management Committee (SSFMC), said they could implement the programme within this year if the parliament passes the bill at the earliest.
The budget states that the contribution of employees and the government to the fund will be ensured through the Social Security Act that will be brought into effect within this fiscal year. After the Act comes into effect, all 1.5 million workers will benefit from the scheme.
Although all salary earners contribute to the social security fund, the government seeks to implement the programme first among industrial workers. The government raises 1 percent of each salary earner’s salary every month. As of now, industrial workers’ contribution to the fund stands at around Rs 500 million.
As per the tripartite agreement between the government, employers and trade unions reached recently, employers will contribute 20 percent of workers’ basic salary to the fund and workers 11 percent after the Social Security Act comes to effect.
The government started collecting the contribution from salary earners to the fund in 2009-10 so as to expand the social security programme at mass scale.
Apart from these three schemes, the government also plans to implement other six schemes including insurance coverage for unemployed, dependant insurance, disability insurance, old age insurance and family insurance.
SSFMC Director Mahesh Baral said the committee has sought International Labour Organisation (ILO)’s opinion on the draft bill. “Once ILO’s feedback is received, the committee will formally submit the draft to the government within two months,” said Baral. The government has also been providing necessary training to staffers of the committee on implementation of the social security schemes. Another SSFMC Director Krishna Dhakal said the committee will finalise the modality on the basis of the training and study of international models within the next two months.
Trade union leaders say the prompt implementation of the schemes will give a sense of relief to public, private and government sector workers, as they have long waited for benefits from such programmes. “Although the implementation process has already been delayed, the ministry has lately taken the issue seriously,” said Ramesh Badal, secretary at General Federation of Nepalese Trade Union.
Source: Kantipur
