TLDR;
This video provides an in-depth explanation of Nepal's Social Security Fund (SSF), detailing its benefits, contribution system, and the recent amendments. It covers the four main security schemes: medicine, health, and maternity protection; accident and disability protection; dependent family security; and old-age security. The video also explains eligibility criteria, pension provisions, and how to access the fund's services.
- The SSF is a contribution-based system where 31% of a worker's salary (11% from the worker, 20% from the employer) is deposited into the fund.
- The fund is divided into four main security schemes: medicine, health, and maternity protection; accident and disability protection; dependent family security; and old-age security.
- The video explains eligibility criteria, pension provisions, and how to access the fund's services.
Introduction to Nepal's Social Security Fund (SSF) [0:00]
The video introduces the Social Security Fund (SSF) of Nepal, highlighting its operating procedures and the recent fifth amendment, which will be implemented from 1 Baisakh, 2082. The objective is to explain the fund's main benefits, how to join, and the changes introduced by the new rules in a simple way. The SSF, which started in 2075, is a contribution-based system designed to provide financial security to workers at different stages of their lives.
Contribution System and Allocation of Funds [0:40]
The SSF operates through a contribution-based system where 11% of the worker's basic salary and 20% from the employer, totaling 31%, is deposited into the fund. This 31% is divided into four main security schemes: medicine, health, maternity protection and accident, immediate needs, dependent family security, and old age security. A significant portion, 28.33%, is allocated to old age security for post-retirement benefits.
Medicine, Health, and Maternity Security Scheme [1:48]
The medicine, health, and maternity security scheme provides several facilities, including treatment expenses of up to 1 lakh per year for hospital admissions, provided the contributor has contributed for at least 3 months in the last six months. For outpatient treatment (OPD), up to 20,000 per year is available. For serious diseases like cancer and heart disease, treatment expenses of up to 1 lakh are provided in a lifetime, requiring a contribution of at least 24 months in the last 28 months. Maternity and newborn childcare expenses are also included, with an amount equal to one month's minimum salary available for maternity care. If a contributor has contributed for 60 months (five years) and receives treatment between 100,000 and 000,000 rupees in a network hospital designated by the fund, the fund will bear up to 50% of the expenses.
Accident and Disability Protection Scheme [3:37]
The Accident and Disability Protection Scheme provides 100% coverage for accidents due to employment. For accidents unrelated to work, treatment expenses up to 700,000 rupees are provided. If an individual becomes permanently disabled and unable to work, they receive 60% of their basic salary monthly until they return to work. In cases of permanent disability, a lifetime mental disability pension is provided, with the percentage of disability determining the pension amount. For example, a completely disabled person receives 60% of their salary for life.
Dependent Family Security Scheme [4:44]
The Dependent Family Security Scheme ensures that if a contributor dies due to employment-related reasons, immediate benefits are provided. If the death is due to other reasons, the contributor must have contributed regularly for at least 12 months. The husband or wife of the contributor receives a lifetime pension, which stops if they remarry or start working. The pension is equal to 60% of the contributor's last basic salary monthly. Up to two children under the age of 18 receive an educational scholarship of 40% of the basic salary, divided equally. This scholarship is available up to age 21 or for life if the children are physically or mentally disabled. If there is no husband, wife, or children, dependent parents receive 60% of the pension scheme for life. Additionally, a lump sum of 5,000 rupees is available for working expenses. If a pensioner dies within seven years of starting retirement, their husband or wife will receive the full pension for the remaining period, and then 50% for life.
Old Age Security Scheme [6:58]
The Old Age Security Scheme, which receives the largest portion of the contributions (28.3%), is divided into two parts: 20% is accumulated for the pension, and 8.3% goes to the retirement benefit plan, received in a lump sum upon retirement. To receive the pension, individuals must be 60 years old and have contributed for at least 180 months (15 years). The pension amount is calculated by dividing the accumulated contribution amount and its return by 160, resulting in a monthly pension for life. Those who have not contributed for 15 years can take all deposited amounts (contributions and returns) in a lump sum or opt for the previous pension formula. The 8.33% allocated to the retirement benefit plan is received in a lump sum upon retirement, and contributors can add to it voluntarily. After contributing for three years, a loan of up to 80% can be taken from this account. Foreign citizens can withdraw this amount in a lump sum when leaving Nepal.
Accessing Health Facilities and Additional Information [9:15]
All treatment expenses mentioned earlier are available in hospitals or at the rate specified by the fund, only in health institutions designated by the fund. The fund has agreements with hospitals in major cities such as Kathmandu Valley, Biratnagar, Pokhara, Birgunj, Dhangadhi, Bharatpur, Bhairawa, Nepalgunj, and Banepa. Services should be taken from hospitals within the network. For more information, individuals can contact the fund's hotline number 1116 or visit the website ssaf.go.np.
Conclusion and Key Takeaways [10:07]
The Social Security Fund is a mandatory savings and security scheme that provides financial support in case of illness, accident, loss of a family member, and after retirement. Regular contributions are important to access a wide range of benefits. The fund aims to provide a strong financial base for the future and reach all types of workers, whether in the formal or informal sector. The implementation aspect is crucial for its success.