KATHMANDU, Nov. 27 (Xinhua) -- Nepal has implemented a contribution-based social security scheme on Tuesday, ensuring pension for the private sector employees after their retirement for the first time.
Nepali Prime Minister K.P. Sharma Oli launched the scheme at a ceremony in Kathmandu on Tuesday, which is designated as the Social Security Day.
In order to participate in the scheme, an employee of business enterprise should contribute 11 percent of basic salary while the employer should contribute 20 percent of the basic salary to the Social Security Fund created by the Nepali government.
Although the government has planned to implement the universal social security scheme, it will first implement the scheme for workers employed in the private sector enterprises, according to Nepal's Ministry of Labor, Employment and Social Security.
According to the ministry, the workers can enjoy four types of facilities under the social security scheme, including the Dependant Family Security, the Elderly Security Scheme, the Medical Treatment, Health and Maternity Security and the Accident and Disability Security.
Under the Dependent Family Security Scheme, husband or wife of the deceased employee is entitled to get pension until death on the basis of 60 percent of basic salary earned by the deceased employee. Additionally, an offspring of the deceased will get 40 percent of educational scholarship. Under the Elderly Security Scheme, an employee will get pension until death after his or her retirement from job.
It is the first time that pension scheme for the private sector employees has been introduced in Nepal. So far, only the government employees are entitled to get pension from the government after their retirement.
In order to get medical facility under the Medical Treatment, Health and Maternity Security plan, an employee and employer has to contribute to the Social Security Fund for at least six months. It is necessary to contribute for at least 12 months to the fund to get facility under maternity security plan.
Prime Minister Oli said the scheme was launched as a part of making the state responsible for the people and their well being. "This has ended the long-standing belief that only the government employees should benefit from the state," he added.
He also said that scheme was launched as a part of introducing flexible labor law in favor of employer and social security for the workers to create conducive business environment.
Minister for Labor, Employment and Social Security Gokarna Bista said on the occasion that it would help enhance the productivity of workers as they are assured of their future.
The scheme is expected to benefit around 3 million people engaging in around a millions economic units both government and the private sector. According to National Economic Census conducted by the Central Bureau of Statistics, there are as many as 922,445 economic establishments in Nepal, where 3,408,746 people are engaged directly.
