Key Social Protection schemes in Nepal

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Nepal Key Social Protection schemes in Nepal

• Provident Fund (Employers 10% + Workers 10% from the basic salary to be deposited in the Govt. owned special financial institution and no government contribution only for permanent employees, only 10% employees covered)

• Gratuity (Approximately 8.33% of basic salary of the workers in an average and contributed only by employer side)

• Workmen’s Compensation (Solely dependent on employers contribution based on nature & degree of injuries)

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Nepal Key Social Protection schemes in Nepal

• Fund for residence (5% of gross annual profit of the enterprise to be deposited)

• Welfare Fund (10% of net profit is to be deposited for bonus distribution and whatever becomes residue after bonus distribution will be deposited by every enterprise in welfare fund. The 70% goes into local welfare fund and 30% goes into national welfare fund)

• Pension (Limited to government employees in civil service, police and arm force including some of the public corporation, but excluded the employees of public enterprises who enrolled after 2000)

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Nepal Key Social Protection schemes in Nepal

• Sick Leaves half day paid 15 days in a year

• Maternity Leaves 52 days before or after delivery. But 2 only 2 times in entire service life

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Nepal Key Social Protection schemes in Nepal

• Senior citizen allowance (Started from 1994 for the aged above 70 yrs, women age above 60 yrs 100% state contribution)

•Single Women allowance (need to satisfy the given condition. no personal income, no family support 100% state country contribution)

• Life and Accident Insurance (limited to some public enterprise, contribution based on CBA)

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Nepal Main Social Security System in Nepal (Employees Provident Fund/ Citizen Investment Trust are the key Social Security scheme in Nepal)

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Nepal Key problems/ challenges that needs addressing

• There is no comprehensive social security system under the Nepali labour law.

• Fragmenting nature of the trade unions

• Political instability

• Government and Employers are yet not contributing in Social Security Fund

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Nepal What should trade unions do? • Lobbying with parliamentarian and

social partners. • Pressure to the Government to

promulgate Social Security Act as soon as possible.

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Nepal What should trade unions do? • Pressure to ratify ILO Conventions 87 and

102. • Workers already started to contribute 1 %

additional amount in Social security Fund since July 2009.

• Trade unions are demanding the Government and Employers to contribute 2.5 % by each against the 1 % contribution of the employee.

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Nepal What should trade unions do? • Trade Unions to come together to

resolve common issues.

o ITUC- NAC GEFONT, NTUC & ANTUF

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Nepal What should trade unions do? • Joint Trade Union Coordination

Council (JTUCC) 1. General Federation of Nepalese Trade Unions (GEFONT) 2. Nepal Trade Union Congress (NTUC) 3. All Nepal Federation of Trade Unions (ANTUF) 4. Confederation of Nepalese Professionals (CONEP) 5. Nepal Trade Union Federation (NTUF) 6. Nepal Progressive Trade Union Federation (NPTUF) 7. Nepal Democratic Trade Union Federation (NDECONT) Apart from above 7 national Centers 4 more national centers are accommodated in JTUCC structure as the observers.

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Nepal Group consist of

1. Jitendra Jonchhe General Federation of Nepalese Trade Unions (GEFONT)

2. Yagya Bhattarai Nepal Trade Union Congress (NTUC)

3. Jagat B. Simkhada All Nepal Federation of Trade Unions (ANTUF)

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Nepal

Thank you !