Work Procedure of SSF Gathering Dust at Prime Minister’s Office

October 4: A proposal forwarded to the Office of the Prime Minister and Council of Ministers six months ago by the labour ministry for providing loan to the contributors of the Social Security Fund (SSF) is gathering dust office. The proposal includes work procedure prepared by the SSF to provide loan to the contributors.

SSF had proposed providing a maximum of Rs 7.5 million loan to those who have contributed to the fund for three consecutive years. As per the proposal, the loan amount will be calculated on the basis of basic salary of the contributor for 15 years and cannot exceed the maximum limit.

The prime minister’s office has a committee comprising of high-level officials from the finance ministry that decides on the proposals to be sent to the Council of Ministers (cabinet).

The officials have refused to forward the proposal to the cabinet arguing that the SSF is not an institution to provide loan. On the other hand, the Employees Provident Fund (EPF) and the Citizens Investment Trust (CIT) have been providing loans to the employees since their inception.

Deputy Executive Director of SSF Bivek Panthi says that the delay in approval of the work procedure has prevented them from investing Rs 2.6 billion that they have collected so far. He argues that it is unfair to allow EPF to provide loan and bar them from doing so.

“The employees are the same. The decision to halt the approval of the proposal reflects discrimination,” says Panthi.

The work procedure proposed investing the fund collected by SSF in government bonds, fixed deposit accounts of BFIs or in long-term deposit plans. It also proposes investing the amount on BFIs or other companies and in mutual funds.

Meanwhile, joint secretary of finance ministry Jhakka Acharya says that the bylaws of the SSF does not allow it to provide loans.

In recent days, there is a growing attraction toward SSF. On Friday, around 176,000 employees associated with 12,780 organisations were listed with the SSF.

During the lockdown period, companies related to the tourism industry, aviation sector, industries, NGOs, finance companies, media houses among others were registered with the SSF.

The prime minister’s office has a committee comprising of high-level officials from the finance ministry that decides on the proposals to be sent to the Council of Ministers (cabinet).

“The employees are the same. The decision to halt the approval of the proposal reflects discrimination,” says Panthi.

Meanwhile, joint secretary of finance ministry Jhakka Acharya says that the bylaws of the SSF does not allow it to provide loans.

In recent days, there is a growing attraction toward SSF. On Friday, around 176,000 employees associated with 12,780 organisations were listed with the SSF.

During the lockdown period, companies related to the tourism industry, aviation sector, industries, NGOs, finance companies, media houses among others were registered with the SSF.