1. Social security measures

2. Concept

3. Concept
Social security is an important aspect of human security and protection.
It ensures the security to those people of the society who are weak and who are in need of such assistance and aims to minimize the risks in future.
In this age, social security has been recognized as a fundamental human right.
Social security is a kind of mechanism which provides security for livelihood during any contingent situation.

4. Constitutional provisions

5. Article 34(2)
Every labourer shall have the right to appropriate remuneration, facilities and contributory social security.

6. Social Security

7. Concept
Although the social security, as a concept originated and applied in the organized sector of employment, because of the welfare state concept in Nepal, social security is being understood as state responsibility to support the weaker sections of the society like indigenous people and ethnic groups, downtrodden and oppressed communities, helpless and disabled persons and senior citizens
Social protection is a broader concept which includes a number of areas where intervention of the state is required so that weakest of the weak also feel secure and can live a dignified life.

8. Concept
Social security means policies and programs which are adopted to improve the conditions of the people living in poverty and disparity through the promotion of labour market, minimization of financial risks and enhancement of capacity to protect from the loss of income and other difficult situations. (ADB)

9. Concept
Social security is a system to insure individuals against interruption or loss of income and contingencies arising from retirement, birth, sickness, invalidity, work injury, maternity, unemployment and death etc.
Social security is a kind of mechanism which provides security for livelihood during any contingent situation. It provides assistance to old aged, unemployed, disabled, injured workers or employees and female workers during maternity.
It also ensures fixed source of income to the dependent family members incase of death of the breadwinner.
In other sense, it helps to alleviate poverty by increasing labour productivity.

10. Concept
Social security also provides security to the workers and employees in a contingent situation resulting from the severance of employment relationship because of age or accident.
It is also a social welfare activity under which poor, helpless, disabled, children, old aged and unemployed people are provided security through economic assistance, medical benefits, insurance, gratuity and pension. The scope of social security is really wide.
Various issues concerning the security of the workers and employees can be incorporated within the social security measures.

11. Definition
Social security provides protection through social insurance programs to the citizens who are at the disadvantageous position due to poverty, old age, incapacity, unemployment etc.
Social insurance under which the contributing members receive the benefits like pension, disability, survivor, unemployment etc;
Income maintenance : this is a social assistance program relating to cash benefit to be provided at the time of job loss, retirement, disability and unemployment;
Services: this is related to programs of assistance including medical provided by the organizations giving employment. They act as service care centers.
Basic human security: in some of the societies, basic human necessities like food, cloth, houses, education and medical facilities are covered by social security system.

12. Extent of social security benefits
The extent of social security benefits that may be provided to the workers and their dependent members depends on the capacity of the workers to contribute and economic capacities of the employers and the government.

13. ILO SS concept

14. ILO Convention (Minimum standards) 102
International Labour Organization passed ‘The Social Security (Minimums Standards) Convention No 102’ in 1952 to ensure the development of social security system for the workers and employees.
The Convention No 102 is based on the fundamental principles of social security.
It has laid down minimum standard on the following nine areas of social security:
Medical benefit
Sickness benefit
Unemployment benefit
Old age benefit
Employment injury benefit
Benefit for family and children
Maternity benefit
Invalidity benefit
Dependent family care benefit

15. ILO Convention (Minimum standards) 102
The principles of ILO Convention 102 concerning social security campaign are as follows:
To ensure the benefits defined for social security;
Participation of employers and workers in the management of social security schemes;
Provisions related to social security and the accountability of the state in the implementation of these provisions;
Joint contribution through fixation of tax or contribution of premium.

16. ILO Convention (Minimum standards) 102
Member countries must adopt at least three social security schemes defined by ILO compulsorily and adopt the rest of the schemes gradually.
Convention No. 102 lays down that social security schemes be administered on a tripartite basis, which aims at guaranteeing and strengthening social dialogue between Governments, employers and workers.

17. Social Protection and Social Security

18. Social protection and social security
Social protection is concerned with protecting and helping those who are poor and vulnerable, such as children, women, older people, people living with disabilities, the displaced, the unemployed, and the sick. 
The objectives of social protection vary widely, from reducing poverty and vulnerability, building human capital, empowering women and girls, improving livelihoods, and responding to economic and other shocks. 
In fact, social protection indicates one important part of social policy and includes different kinds of programs and activities.
Among those activities incorporated by this policy, social security is one of the important ones.
Social security must be considered as one of the important components of social protection in broader perspective.

19. Frame work of Social Protection and Social Security
Civil Service & Private Sector Employees
Programs operated through social insurance 9
Dependent family benefit 8
Invalidity benefit 7
Maternity care benefit 6
Family and child care benefit 5
Employment injury 4
Old age benefit 3
Unemployment benefit 2
Sickness benefit 1
Medical benefit
State funded programs
Medical treatment for all
Assistance to the unemployed and poor
Facilities to children
Benefit to senior citizens, single women and disabled
Those who will be protected
Government and public sector workers
Private sector workers
Workers of informal sector
unemployed
children
Senior citizens

20. Provisions of Contribution Based Social Security Act, 2074

21. Important provisions
No person without making contribution for social security schemes shall be entitled to social security as provided under this Act.
Every listed employer shall deposit the contribution made by workers appointed or employed by him or her on the basis of contributable income of such workers and the amount required to be added in addition to that by such listed employer as per section 7 of the Act into the Fund.
The listed employer shall be required to deposit the contribution from the date of listing of workers until the last day of their employment relationship.

22. Important provisions
The rate of contribution to be made by the listed employer from his/her side or from the contributable income of the contributors shall be as determined in the notice published in the Nepal Gazette by the Ministry on the recommendation of the Board of Directors of the Fund.

23. Important provisions
Social Security Schemes which will be operated under the Act:
Medical and sickness benefit
Maternity benefit
Employment injury benefit
Invalidity benefit
Old age benefit
Dependent family care benefit
Unemployment benefit and
Any other scheme specified by the Fund

24. Important provisions
Social security schemes may be operated in a phase wise manner
Separate account for every worker shall be maintained for the purpose of social security.
The Ministry on the recommendation of the Board shall, through notification in the Nepal Gazette, require employers of specified sector or nature of industries, services or businesses for listing in the Fund within the time as prescribed under the Act.

25. Social Security Fund

26. Operation of social security fund
For the purpose of operation and management of the social security, the Social Security Fund is established.
The fund will be an independent and autonomous body.
There shall be a Board of Directors for the purpose of operation, supervision and management of the functions performed on behalf of the fund.
There shall be a Executive Director as administrative head for the execution of administrative functions of the Fund.
The Government of Nepal may dissolve the Fund on the recommendation of the Board of Directors.

27. Establishment of social security fund
For the operation and management of social security, a social security fund shall be established.
The fund shall have,
Amount contributed by employers and contributors including workers for the purpose of social security schemes
Provident fund amount
Gratuity amount
Bonus amount deposited in the national welfare fund
Social security tax amount
Government grant
Financial aid received from foreign government or international donors
Returns on investment
Loan received from the government
Any other sources

28. Social Security in the informal sector

29. Informal sector
Workers and self employed persons may participate in the social security schemes by making contribution into the fund as fixed by the Ministry through publication in the Nepal Gazette on the recommendation of the Board of Directors.
The Fund shall operate social security schemes as specified for the workers and self employed persons.

30. Provisions in the Labour Act, 2074

31. Major provisions
Sick Leave: Every worker is entitled to paid 12 days sick leave annually. Provided that any worker who has worked for one or lesser than one year shall be entitled to receive sick leave proportionately.
Maternity Leave:
A female worker is entitled to receive a total of 14 weeks of maternity leave with a provision to take before and after the date of confinement. The female worker seeking maternity leave shall be entitled to 60 days of fully paid maternity leave and for the remaining period, it shall be unpaid.
A female worker in a state of seven months pregnancy or more than seven months gives birth to a deceased child or suffers miscarriage, the provision relating maternity leave shall apply.
Every male worker, during the confinement of his wife, shall be entitled to 15 days fully paid maternity care leave.

32. Major provisions Contribution for provident fund
Every employer shall deduct 10 percent of the basic salary of each worker, add 100% amount equivalent to that and deposit the total amount for the purpose of provident fund.
The amount pursuant as above shall be deposited in the Social Security Fund in the name of the concerned worker making effective from the date such worker commences his/her job.
Right to receive gratuity
Every employer shall provide an amount equivalent to 8.33 % of the basic salary of each worker every month and deposit it for the purpose of gratuity.
The amount as above shall be deposited in the Social Security Fund in the name of the concerned worker making effective from the date such worker commences his/her job.

33. Major provisions Provision of medical insurance
Every employer shall make a provision for annual medical insurance of at least one hundred thousand rupees for every worker.
The premium required for the medical insurance shall be shared by both the employer and worker equally.

34. Major provisions Provision of accidental insurance
Every employer shall make a provision for accidental insurance of at least seven hundred thousand rupees covering all kinds of accidents for every worker.
The total premium required for the accidental insurance shall be borne by the employer.
If a worker dies or is completely incapacitated mentally or physically as a result of an accident, such worker or his/her legal heir pursuant to the prevailing law shall receive 100 % amount of the insured sum as compensation.
In case, a worker is injured or incapacitated in an accident, compensation shall be provided in accordance with the percentage prescribed in proportion to the injury or incapacity caused.

35. Major provisions
The employer shall pay an amount equivalent to 10% of the basic salary in addition to the actual remuneration any worker is entitled to receive, in case the amount for the provident fund could not be deposited in the Social Security Fund as required.
The employer shall pay an amount equivalent to 8.33% of the basic salary in addition to the actual remuneration any worker is entitled to receive, in case the amount for the gratuity could not be deposited in the Social Security Fund as required.
Any worker taking the benefit of pension shall not be entitled to receive gratuity.

36. Major provisions Treatment Expenses:
Where any worker becomes incapable of working as a result of physical or mental incapacitation or disablement or injury or probability of causing an adverse effect on the business of the employer because of long term medical treatment of the worker, the employer may, on the basis of a recommendation of a doctor, terminate the employment of such worker.
The employer shall not terminate the employment of any worker during the period he/she is undergoing medical treatment in the hospital because of an accident or occupational disease caused while performing the work or within one year from the date of commencement of treatment at home. The employer shall give full pay during the period of such treatment.
Provided that the employer shall not be required to pay such remuneration if the worker is entitled to receive the remuneration for the treatment period from the Social Security Fund.

37. Major provisions
The trainees and part time workers are also entitled to receive minimum social security benefits including sick leave benefit, provident fund and gratuity and insurance benefits as specified under the labour laws.

38. Major provisions Severance pay for retrenchment:
Where an enterprise faces financial problems in its operation or the workers become redundant because of merger of more than one enterprises or because of any other reason the enterprise needs to be closed down partially or completely, the employer may retrench workers.
When the employer shall pay a lump sum amount as compensation calculated at the rate of one month basic salary for each year of service to those workers who have completed at least one year of employment in such enterprise.
The worker shall not receive the severance pay as above, if he/she is entitled to receive unemployment benefit under the social security laws.
Provided that, if the service period is less than one year, the compensation shall be paid proportionately.

39. Major provisions
Welfare Fund: As per the Bonus Act, 1974, 10 per cent of net profit should be deposited for bonus distribution to workers. The Act fixes the maximum upper limit of bonuses to be paid. The amount that is left after bonus distribution will be deposited by every enterprise in the Welfare Fund. Of the amount deposited in the Welfare Fund, 70 percent goes into Local Welfare Fund and 30 percent into National Welfare Fund.
The Welfare Fund established under section 37 of the Labour Act, 2048 and section 13 of the Bonus Act, 2030 shall continue its operation until separate laws relating to social security are made - Section 178(6)

40. Major provisions
Collective bargaining agreement and social security provisions
The provisions of the Social Security Act and the Rules shall not be affected by the provisions relating to collective bargaining or collective agreement.
However, social security benefits may be improved by collective bargaining.