Social Security Fund to deposit Rs 852.34 mln in contributors’ accounts

KATHMANDU: The Social Security Fund (SSF) has said that the amount received by the fund during the lockdown period in April, May and June will be deposited as relief in the name of the contributors.

SSF informed that a total amount of Rs 852.34 million has been received as relief fund from the government which will be deposited to the contributors’ accounts.

Point 57 of the budget for the current fiscal year mentions that the government will bear 31 percent contribution made by depositors during the lockdown. Of the 31 percent contribution at the SSF, employees are required to contribute 11 percent of their basic salary and employers need to add 20 percent of the respective employee’s basic salary.

As per a decision made by the Cabinet on March 29, the relief fund of Rs 186.6 million issued for the month of March has already been deposited to the contributors’ accounts.

Over 12,500 employers registered at SSF

The number of employers including private and joint venture firms that have registered at the Social Security Fund (SSF) has crossed 12,500.

According to data maintained by the fund, a total of 173,460 employees working for 12,675 employers have joined the fund that came into operation from December in 2018.

As per Executive Director of SSF, Kapilmani Gyawali, the companies that had been depositing funds at the Employees Provident Fund (EPF) in the past have started to gradually join the SSF.

According to the Economic Act 2077 BS, private and joint venture firms have until April next year to register their entities at the Social Security Fund. Gyawali said that many companies in the past had not registered at the EPF too but now the government has made it compulsory along with the endorsement of the Social Security Act for all types of firms to get registered at the SSF.

Gyawali further mentioned that private and joint venture firms that had been depositing funds at the EPF have to now register and deposit necessary funds at the SSF. Some companies that had been registered at the Employees Provident Fund like Surya Nepal and Shikhar Shoes, among others have already shifted to SSF.

As of now, the total contribution at SSF stands at Rs 1.75 billion. Till September 11, the total claim amount had reached Rs 8.53 million and the total number of payments made stood at 350. The amount had been withdrawn for various purposes like medical treatment, health and maternity claims and also on accident and disability security claims operated by SSF.