There are 4.4 million workers in the informal sector, but only 1,469 have been brought under social security.
What you should know
Indraman Gurung is the driver of Minister of Labor, Employment and Social Security Rajendra Singh Bhandari. He has been the driver of the Labor Minister for a decade. He also got the responsibility of driving the new Labor Minister Bhandari.
On Wednesday, Gurung was taking Labor Minister Bhandari to the event venue to inaugurate a campaign to include informal and self-employed workers in the contribution-based social security. On the way, he asked the Labor Minister, ‘Those like us who are on contract in government services should also be included in social security.’ ‘I was on my way.’ My driver is saying that we should also be included in the social security program,’ Labor Minister Bhandari said, ‘Where is the file to include them?’
The file to include informal and self-employed workers in the contribution-based social security program, including government services, has been stuck at the Ministry of Finance. The government had taken a policy decision to include government, informal and self-employed workers in the social security program from 32 Shrawan 2080. The Social Security Fund has also issued a working procedure for that. In these two years, only 1,469 people have been included and are contributing regularly. Of which 809 are informal and 660 are self-employed.
According to the latest labor force survey, out of 70 lakh 86 thousand workers in the internal labor market, 4.4 lakh 11 thousand (62.2 percent) are employed in the informal sector. The largest number is in the agricultural sector, 1.4 lakh 34 thousand are employed in non-agricultural sector, 2.9 lakh 4 thousand are employed in domestic labor, and 73 thousand are employed in domestic labor. One in five people is employed in the agricultural sector. The sector that provides the most employment is agriculture. This is followed by the trade sector with 17.5 percent, the construction sector with 13.8 percent, and the service and sales profession with 23.8 percent.
Confusion over contributions
Why did only 1,469 people out of 4.4 lakh labor force in the labor market join the fund? Kabiraj Adhikari, the executive director of the fund, said that there is no clarity on the contribution between the local, provincial and federal governments as per the working procedure.
According to the procedure, informal or self-employed workers must deposit 20.37 percent of the minimum basic wage set by the government into the fund. The government has fixed the minimum salary at 19,550. Out of this, 11 percent is being paid by the workers. The remaining 9.37 percent is not clearly determined by the local, state and federal governments, the fund's executive director Adhikari said. 'There is a provision for contribution in the law. There is confusion about who among the three governments will pay how much,' he said. 'Some municipalities have taken responsibility themselves. But they have not been able to promote it.'
Local municipalities must list informal or self-employed workers. For this, only 114 municipalities have signed agreements with the fund. Only 6 municipalities have affiliated workers. Hidam Lama, the chairman of Bhimphedi Rural Municipality in Makawanpur, who was the first to affiliate informal workers to the fund, said that it was unfortunate that workers could not be affiliated in the name of the working procedure.
‘We have affiliated 200 informal workers. We will add another 100 in the current fiscal year. This has ensured that workers who work by crushing ballast will receive everything from pensions to free health services,’ he said, ‘Such an important issue is being overlooked in the name of donations.’
Ghanashyam Subedi, the chairman of Phedikhola Rural Municipality in Syangja, said that the local government is ahead of the federal and provincial governments in providing social security to workers. ‘We have identified and listed daily wage workers. Among the 11 municipalities in Syangja, Phedikhola is the municipality with the lowest income source. Despite the low income source, we have not backed down,' he said, 'Even if the federal government initially allocated only Rs 50 million, it is enough for now.'
Municipalities in urban areas are still stuck with voters. Some municipalities have not registered workers who are not voters. 'Our geography is small. But the population is large. Most of the workers here are from outside the district. They are not voters of our municipality. Conflict has increased among the people's representatives of our municipality on this issue,' said Anita Lama, deputy mayor of Budhanilkantha Municipality, 'The contribution of the workers working here is significant. But we cannot dismiss them just because their names are not in the voter list.' The municipality should contribute where the worker works.'
Benefits for informal workers joining the fund
There is a provision that regular contributors to the fund will be provided with medical treatment facilities of up to 100,000 rupees, maternity facilities of up to 98 days equivalent to 60 percent of the minimum basic wage for female contributors, and an amount equivalent to one month of the minimum basic wage per child for childcare.
Treatment expenses of up to 70,000 rupees in case of accident, and an amount equivalent to 60 percent of the minimum basic wage in case of permanent disability. In case of death of the contributor, his dependent family will get pension facilities, educational allowance for children under 18 years, a lump sum for funeral expenses, and the contributor will get pension facilities based on monthly contributions for life after 60 years.
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