8,200 companies register with Social Security Fund

October 18, 2019

My Republica, October 18, 2018

Nearly 92,000 employees listed in the contribution-based fund as deadline expires

KATHMANDU: Over 8,200 employers have registered themselves with the Social Security Fund (SSF) to enlist their 92,000 employees, as the deadline to private sector firms and establishments to sign up with the contributory-based social security scheme ended on Thursday.

According to the SSF Secretariat, it has received applications from 8,200 firms and organizations as of Thursday to enrol their 92,000 employees in the fund which was rolled out amid much fanfare in November last year.

Kapil Mani Gyawali, the SSF’s Executive Director, told Republica that they received applications from over 3,000 companies and organizations on Thursday – the last day to register themselves with the scheme.

“The registration of establishments to enlist their employees in the SSF has been overwhelming,” Gyawali told Republica, adding that it was up to the government whether to extend the deadline for registration.

In line with the provision of the contribution-based Social Security Act, 2018, the government had provided a deadline of Ashoj end (October 17) to register themselves and all of their employees in the SSF.

Following the registration, employers have to deduct 11% of the base salary of their staffers and contribute 20% additional fund from their own side to deposit in the SSF. The monthly contribution of the listed employees will entitle them for various social security schemes run by the SSF.

The government has already warned that those firms or organizations not listing themselves in the SSF scheme by mid-October will have to bear all liabilities related to social security benefits of their employees.

Assistance for medical treatment, health and maternity protection, accident and disability protection, dependent family protection, and elderly protection (pension) are the schemes that the SSF has so far announced to provide to the listed employees.

While the number of private firms and companies that are in operation is expected to go higher, it appears many of them still did not sign up with the mandatory scheme.

Meanwhile, the government is likely to extend the deadline for the private sector employers to register themselves in the SSF.

“There has been a lot of interest among private sector organizations. But many may not have been able to sign up owing to initial confusions over the scheme,” said a senior government official, requesting anonymity. “The government may extend the deadline so that all establishments can register themselves in the SSF. But, the deadline extension will be in phase-wise manner for registration of firms, listing of employees, and contributions,” added the official.

According to the secretariat, the SSF has received Rs 650 million in contributions from all employees who have been listed by 13,000 firms since mid-July.