The Bagmati Province government has provided 50 percent assistance to two municipalities in Makawanpur that have included informal sector workers in the social security fund.
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The Bagmati Province government has started providing financial assistance to municipalities to bring workers working in the informal sector under the ambit of the Social Security Fund. The provincial government has provided 50 percent assistance to two municipalities in Makawanpur that have included workers in the informal sector in the Social Security Fund.
With the aim of increasing the access of informal workers to the Social Security Fund, the provincial Ministry of Labor, Employment and Transport on Friday signed an agreement with Bhimphedi and Indrasarobar rural municipalities of Makawanpur, which have implemented the social security program, to provide initial assistance and provide funds.
The provincial government signed an agreement with the municipalities selected under the social security procedure for informal sector workers and handed over Rs. 1.1 million 400 to Bhimphedi and Rs. 68,400 to Indrasarobar, providing a maximum of 50 percent of the amount collected at the local level.
Bhimphedi has so far brought 311 informal sector workers and Indrasarovar 40 workers under the Social Security Fund. Under this, Bhimphedi has been contributing Rs. 22 lakh 8 thousand 817 annually and Indrasarovar Rural Municipality has been contributing Rs. 133 thousand 839 annually. As per the procedure, the provincial government has contributed up to a maximum of 50 percent of the amount equivalent to the amount, said Sunita Gajurel, spokesperson of the ministry.
The amount deposited in the fund by the local level has been provided to the account of the concerned local level as a reimbursement. It is believed that the said scheme will be implemented in other local levels next year and will provide significant support in the social security of informal sector workers within the province.
After the agreement between the ministry and the local level, Minister for Labor, Employment and Transport Jayaram Thapa said that the right to employment is a constitutionally guaranteed right of citizens and that the contribution-based social security program will benefit the poor community. Stating that it is the responsibility of all three levels of government to contribute to the social security fund, he claimed that it started with Bagmati Province. Bhimphedi Rural Municipality Chairman Hidam Lama said that the implementation of contribution-based social security is a public welfare program.
The ministry, in collaboration with the local level, has started the initial contribution to include workers working in the informal sector in the fund from the current fiscal year 2082/083. On behalf of workers in the informal sector, the local level will have to contribute 9.37 percent of the minimum basic wage set by the Government of Nepal and 11 percent of the workers concerned, or 20.37 percent, to the fund on a monthly basis. Out of the amount to be contributed to the fund in the name of the workers, the provincial government will provide a maximum of 50 percent of the amount to the local level under this program.
