January 13: The government has expressed its willingness to resolve the practical problems posed by the much-hyped Social Security Fund targeted to the private sector employees. The government has hinted at policy-level reforms to avoid double taxation and to address the issue of pension in the contribution-based social security scheme.
A work procedure prepared by the Ministry of Labour, Employment and Social Security proposing 12-point facility including educational and home loan for the contributors has been forwarded to the Ministry of Law, Justice and Parliamentary Affairs by the finance ministry.
The work procedure is currently under discussion at the law ministry.
Executive Director of the Social Security Fund, Kapil Mani Gyawali, claims that the work procedure proposes attractive offers to the contributors than the Employee Provident Fund and the Citizen Investment Trust.
The government was under pressure to review some controversial provisions in the scheme after bank employees decided to oppose the move saying that joining the government scheme would deprive them of whatever little income that they currently make.
Gyawali said that the fund has made an attempt to address the issue of double taxation. He further said that the authorities are preparing to lower the age bar to receive pension from 60 years to 58.
The government has formed a taskforce headed by Joint Secretary Ram Prasad Ghimire to amend the Social Security Act.
A source at the ministry said that the taskforce is currently busy in homework for amending the laws. The source added that the amendment proposal will be tabled at the ministry soon.