Contract and Wage-Based Government Workers Also Included in the Social Security Fund

The General Federation of Nepalese Trade Unions (GEFONT) has expressed its gratitude to the Government of Nepal for making it mandatory for contract and temporary employees working in any government body to be enrolled in the contribution-based Social Security Fund.

GEFONT has long been advocating for the implementation of contribution-based social security for all workers and employees across all sectors. Responding to this demand, the Government of Nepal, through a notice published in the Nepal Gazette on April 14, announced that workers who receive salaries from government funds but are not entitled to pensions must now be mandatorily enrolled in the contribution-based Social Security Fund.

According to the notice published in the Nepal Gazette on April 14, employees working on a contract or temporary basis in provincial or local governments, or in institutions, corporations, boards, authorities, enterprises, or similar entities that are wholly or partially owned by the Government of Nepal, provincial governments, or local governments, must contribute to the fund. The Ministry of Labour, Employment and Social Security stated that the contribution must be based on at least 60% of the salary they are currently receiving, with 20% to be contributed by the employer and 11% by the worker.

The Ministry issued this notice by exercising the authority provided under Section 2, Clause (j) of the Contribution-Based Social Security Act, 2017 (2074 B.S.).

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