Social Security Fund Collects Rs 94 Billion, Disburses Rs 17 Billion in Worker Benefits

The state-run Social Security Fund (SSF), established to ensure social protection for workers and their families, has collected a total of Rs 94.09 billion till date, while disbursing Rs 17.29 billion to contributors under various schemes.

According to the latest data of SSF, 2,592,141 contributors and 22,125 employers have been registered in the Fund so far. Despite this progress, a large portion of Nepal’s labour force remains outside the SSF’s coverage. The 2021 census (2078 BS) estimates Nepal’s total labour force at around 16.8 million, with only 2.5 to 3.5 million employed in the formal sector. Many workers in both the formal and informal sectors have yet to enrol in the Fund, officials said, adding that efforts are underway to gradually register all eligible employers and workers.

The state-run news agency RSS reported that SSF has disbursed Rs 2.42 billion for medicine, health and maternity claims; Rs 223.1 million for accident and disability protection; Rs 283.6 million for dependent family security; and Rs 14.36 billion for retirement benefits.

The SSF, launched by then Prime Minister KP Sharma Oli in 2018, has undergone several amendments to expand its scope and increase participation. The government amended the social security procedure in March to make the scheme more appealing amid low enrolment. With the fifth amendment, children of contributors are now also entitled to certain benefits.

Executive Director Kabiraj Adhikari said preparations are underway for the SSF to gradually take full responsibility for the healthcare needs of contributors and their families within the next four years. “The service, which was limited to contributors five years ago, has now been extended to include their spouses and children,” Adhikari said. “The facility has also been implemented for workers in the informal sector and will be expanded further.”

At present, the SSF bears 80 percent of treatment costs requiring hospitalization up to Rs 100,000, and 50 percent of costs up to Rs 1 million in cases of serious illness. For outpatient services, it covers 80 percent of treatment costs up to Rs 25,000 annually.

Contributors who have made continuous payments for at least three months are eligible for these benefits, which continue for up to three months even after they stop contributing due to the end of employment.

Under the contribution-based model, employers contribute 20 percent of an employee’s basic salary and employees contribute 11 percent, making a total of 31 percent of the basic salary deposited into the Fund.

Officials said the SSF is working to ensure regular contributions from workers employed abroad and to extend coverage to all sectors of the workforce.