Deposits at SSF double to Rs 1.72 billion during lockdown

The fund, which had deposits of Rs 840 million before the lockdown has seen that figure balloon to Rs 1.72 billion at present.

Fiscal Nepal

September 1, 2020, 10:58:42 AM |

KATHMANDU: Deposits at the Social Security Fund (SSF) have doubled during the lockdown period.

The fund, which had deposits of Rs 840 million before the lockdown has seen that figure balloon to Rs 1.72 billion at present.

The fund will record even more money when Rs 860 million is deposited in its account. The Ministry of Finance had allotted the said amount to SSF during the lockdown. However, the amount has not yet been deposited. Once the amount has been deposited, the fund will have an amount worth around Rs two billion.

According to Bibek Panthee, spokesperson at the SSF, 160 employers and 16,118 employees were listed at the SSF in the lockdown while 31,000 contributors started depositing from mid-April. Till August 30, the number of contributors reached 61,716.

As per the work procedure of the SSF, workers have to deposit a total of 31 percent of their basic salary in the fund which includes 11 percent contribution of the basic salary by the employees and another 20 percent by the employers.

Since the private sector has been badly hit by the pandemic, the government had announced it would bear the contribution of the employees and employers as a step to provide relief to the sector. As per this decision, the government had disbursed Rs 186.70 million, the total amount for the month of March, to the SSF.

While announcing the current fiscal year’s budget on June 3, the government had announced that it would deposit the amount of the employers registered at SSF during the lockdown. It had also allowed the employers to borrow the deposited amount to pay the salaries of its employees.

For this, the SSF has submitted a working procedure to the cabinet. Panthee said the amount disbursed from the Ministry of Finance has to be approved for lending to the employees.

He said, “The Ministry of Finance has disbursed the amount to the Ministry of Labor, Employment and Social Security and it will be transferred soon to the SSF. Only then will the amount be deposited in the concerned employer’s account. Then the employers can borrow the money for salary payment to their employees.”

SSF said that different companies from various sectors were listed in the lockdown.