‘Facilities not reduced when participating in the social security’

-Ashok Ghimire/RSS

Kathmandu, Dec 19, 2019 : The government has made it clear that the facilities currently enjoyed by the labourers would not be reduced after their participation in the contribution-based social security plan.

The Ministry of Labour, Employment and Social Security (MoLESS) stated that there was no any truth in the rumour that the existing facilities enjoyed by the workers would decrease if they participated in the social security scheme.

The implementation of the social security plan will not cause any adverse effect on the workers’ facilities and remuneration, the Ministry said.

“There is no question of reduction in the facilities enjoyed by the workers since the topics provided for in the Clause 178 (3) of Labour Act, 2074, are only the minimum standard,” states a press note issued by Dr Narayan Regmi, the Ministry’s spokesman.   

The Clause reads: It shall not be considered the services, conditions and facilities of labourers, getting facilities more than the facilities stated in this Act through the existing laws or through collective agreement, at the time of the commencement of this Act, are adversely affected   by anything stated in this Act.

The employers had been dillydallying registering in the social security fund citing lack of interest by workers themselves for participating in the social security plan. The government had given formal deadline till November 30 for participating in the policy.

According to the contribution-based social security fund secretariat stated that a total 11,852 employers and 133,111 workers have been enlisted in the fund as of December 18. A contribution amount of Rs 294 million 802 thousand 976.81 has been collected.

There has not been an encouraging participation from employers and workers alike in the social security plan due to the rumour that enlisting in it would entail additional liability to the former and a reduction in the existing facilities enjoyed by the latter. 

President of the Joint Trade Union Congress Coordination Centre (JTUCC), Binod Shrestha said the employers cannot escape from the responsibilities towards the social security plan and fund as it has been implemented through the tripartite consent of the government, employers and the workers. “Nobody has the freedom to escape saying they do not want to be a part of the plan,” he asserted.

The Ministry stated that there could not be any comparison between the services and facilities from the social security plan and the benefits obtained from other funds.

It concluded that it is not relevant to compare the facilities to be obtained from the social security fund and the facilities provided by the Employees Provident Fund and the Citizen Investment Trust.

“The Social Security Fund is a body set up in the context of ensuring the labourer’s right to social security based on contribution. It is irrelevant to compare the Social Security

Fund with any fund established with the objective of promoting saving habit among the people or developing the capital market in the country or any other saving-oriented fund,” Ministry spokesman Regmi explained.

Social Security Fund is a non-profit institution that is operated through consensus and collaboration of the government, employers and labour representatives.

All the benefits accruing from it are provided to the contributors only. The law provides that the amount collected from the contributors shall be utilized only for that purpose.

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