Social Security for Temporary and Contract Government Workers

Government Decision to Include Temporary and Contract Workers in Social Security

The Ministry of Labour, Employment, and Social Security has decided to include temporary, contract-based, and wage-based workers in public service in the Social Security Fund. On Chaitra 15, Labour Minister Sharatsingh Bhandari decided to enroll all such workers, except those already receiving pensions from government funds, in the fund.

The decision was formally published in the Nepal Gazette on Baisakh 1. According to the notification, individuals receiving remuneration from the consolidated funds of the federal, provincial, or local governments, including institutions, corporations, boards, authorities, or similar bodies either fully or partially owned by these governments, will now be listed as contributors to the Social Security Fund.

The basic salary will be at least 60 percent of the current salary. Of this, 20 percent will be deposited into the fund on the employer's (the government's) behalf, and 11 percent will come from the worker’s share.

Coverage Estimate and Background

Approximately 30,000 contract and wage-based workers receive salaries from government sources. Since implementing the contribution-based Social Security Fund, these workers have demanded inclusion.

Minister Bhandari's decision aligns with the Prime Minister's commitment to bring temporary and contract employees under social security protection. He emphasized that no Nepali working in any government sector will remain outside the Social Security Fund. The employer and the contributor must make regular contributions, and the government will ensure effective implementation.

Workers Already Covered

The fund has already included workers from formal, informal, and foreign employment sectors. In the six years since its implementation, 2.151 million workers have been enrolled. Of these, 574,000 were enrolled through 20,000 domestic employers.

A total of 1.575 million workers engaged in foreign employment are already contributing to the fund. The total amount collected under the social security program has reached NPR 77.67 billion.

Benefits for Contributors

Of the total amount collected, claims worth NPR 13.92 billion have been made under various benefits. The following provisions are available to regularly contributing workers:

• Up to NPR 100,000 in medical treatment expenses

• Maternity benefit equal to 60 percent of the minimum basic salary for 98 days for women contributors

• Childcare allowance equal to one month’s minimum basic salary per child

Additional Insurance and Support

Up to NPR 700,000 is provided for treatment in case of accidents. For permanent disability, 60 percent of the minimum basic salary is offered. In the event of the contributor’s death, the dependent family will receive pension benefits.

Additional support includes:

• NPR 25,000 for funeral expenses

• Educational scholarships for children up to the age of 21