By Admin 31 Mar, 2022 Business

Social Security Act 2074 : Prospects of Employer and Employee

Objective :

1. To ensure the rights of the workers contributing to the social security fund.

2. To provide social security to the contributors

Applicability: 

To every employer where employer-employee relation is established.

 

 

 

 

 

 

 

 

 

Registration process: 

  1. Physical Registration 

  2. Online Registration

 

 

 

 

 

 

 

 

 

Documents Required for Registration : 

  1. Registration Certificate of Business Entity 

  2. PAV/VAT Registration Certificate of Business Entity

  3. Meeting Minute with a decision to take part in SSF

  4. Details of Employee/Workers

Social Security Number: A unique social security number will be assigned to all contributors and mentioned in the identity card to be issued. Upon liquidation, dissolution or winding up of an enlisted employer, the enlistment number provided shall become invalid.

 

 

 

 

 

 

 

 

 

 

Involvement in Social Security Program: 

Contributors get involved in the Social Security fund from the day of enlistment. Incase of death before receiving facilities, such facilities will be provided to the nominee. And if there is no nominee, it will be provided to the dependent family.As a motivating factor to the contributors from the informal sector, additional amount in the amount deposited will be added to the fund by GON, State Government or local authorities.Employees who get salary from government fund will be involved in some of the social security plan as prescribed by publishing information of Nepal Gazette.

 

 

 

 

 

 

 

 

 

Amount Transferred to the Fund: 

The Social Security Fund will be operated from following amount collected:

- Contribution from employer and employee to the fund.

- Provident Fund contribution from employee and employer.

- Amount to be paid to Employers under Labor Act such as Gratuity, Pension and other facilities etc.

- 30% of the remaining Bonus Amount deposited in the National Level Welfare Fund. –Only used for concerned employees.

- Social Security Tax collected till date and to be collected in future.

- Donations from Government of Nepal.

- Loan, Assistance and Donation from Foreign Government and International Organisation

- Profit and interest earned from investment of amount in the fund.

- Loans from Government of Nepal.

- Amounts from any other sources.

 

 

 

 

 

 

 

 

 

Contribution, Timing and Current PF & CIT

Contribution

- On Monthly Basis

- Where a full month’s contribution is not required; it shall be deposited on a proportionate basis.

Timing

- Contribution shall be deposited to the Fund within 15 days from the end of the month.

Current PF and CIT

- The amount accumulated in the Citizen Investment Trust and Employee Provident Fund needs to be transferred to the Social Security Fund.

 

 

 

 

 

 

 

 

 

Selection of Social Security Plan : 

1. For informal sector employees : Selection of one or more plans of social security on basis of their contribution 

2. For other employees: Do not possess the right to choose the social security plan as to participate in one and not to participate in another.

 

Old Age Protection Fund: 

- Scheme is operated by 28.33% of basic salary (10% by each employee and employer as PF and 8.33% as gratuity)

- The contributing Employee shall receive either (I) Pension or (II) Retirement Scheme Benefit

- The employee shall receive the pension upon the completion of the retirement age i.e. 60 years. The total contribution made and the accrued return will be divided by 180 months (15 Years), and such amount will be paid as pension every month during the employee's lifetime. 

- If the contributor dies before retirement, a lump sum amount will be provided to the legal heir.’

Dependent Family Security Scheme

Benefits: 

Pension for husband or wife: 

- If died due to an accident or business related disease, 60% of the latest basic salary during lifetime. 

Education Benefit for children

- For children up to 18 years, 40% of the latest basic salary will be provided monthly until s/he has completed 18 years. 

- If there is more than one children, the benefit will be divided proportionately

- If the children have continued education, such benefits will be extended to 21 years of age, if not married. 

Benefit to the parents: 

- Only if the deceased contributor does not have husband/wife or children 

- 60% of Basic salary monthly will be provided during lifetime. 

Expenses for Funeral - NPR 25000, will be provided to dependent family members. 

Accidental And Disability Safety Plan : 

Requirements to Obtain benefit:

- For employment related accident, benefit will be obtained after the date of contribution 

- For occupational disease, shall have to contribute a minimum of 2 years. 

Limit: 

- For employment related accident- all expenses incurred

- For other- Upto NPR 700,000

Exclusions: 

- Accident due to Natural Disaster

- Road Accident 

- Can get benefit from insurance, which is covered by insurance. 

Medicine Treatment, Health and Maternity Safety Plan

Qualification to benefit from this facility

  • For Medical Plan Related : 6 month contribution in the fund shall be made

  • For Maternity Safety PLan : 12 month contribution in the fun in 18 month period

Type of Facility:

  • Doctor’s Counselling Service

  • Hospital admission fee and Surgery Charge

  • Expenses of Diagnosis and Treatment of Disease

  • Medicine expenses as per Bill

  • Expenses of contributor or contributor wife regular pregnancy test, hospital admission, surgery and treatment of newly born child for up-to 3 months

  • If a patient is unable to go to hospital for admission and is receiving the treatment at home, the fee of the doctor's or health assistant’s counselling service. 

Limit of Benefit: 

  • Treatment by admitting in hospital, Upto NPR 1 lakh per year payment directly to hospital 

  • For pregnancy related test and treatment of new born baby, claimed within above limit

  • Except for those who need treatment by admitting in hospital, medication as per prescription of doctor, up-to maximum of NPR 25,000 per year.

  • If a newborn baby is born, one month minimum salary per baby is provided.

Exclusions: 

  • Plastic Surgery and for Treatment of Teeth expect if the surgery is necessary due to accident

  • Expenses of Bariatric Surgery ( Removing Fat) 

  • Due to the spread of the epidemic, the fund could not control the expenses and the plan has been suspended. 

  • If same benefit has been obtained under Accident and Disability Safety Plan 

Offence under Social Security Act: 

  • A penalty of NRS. 100,000 or imprisonment for 1 year or both shall be levied if the amount cannot be quantified. 

  • Where the amount can be quantified, the penalty shall be equal to the amount involved in the offence. 

  • For other persons who have assisted in the offence, the penalty shall be 50% of the punishment provided to the principal offender. 

 

When Employee Changes Employment: 

  • When an employee changes the job from one nature employer to another nature employer, the fund amount accumulated in his/her name shall be transferred to the current employer's account in the name of the employee.

  • Current employer shall make an application to the previous employer of that particular employee to transfer the amount.