Contribution-based Social Security Act Policy Brief

The incumbent government unveiled the Contribution-based Social security Scheme which is the first of its kind in Nepal. This scheme provides a foundation of income security on which individuals can build a plan for contingencies of old age, disability, accidents, curative or preventive medical care. It is an extended form of social protection that reduces risks and ensures compensation should the need arise.

Although the scheme is a social policy instrument that protects and safeguards the interest of the marginalized and vulnerable labor class, significant concerns that undergird social insecurity and injustice have been raised regarding the same. This is the foremost reason as why both employers and employees are seemingly reluctant to participate in this scheme. The following points outline the key pain points that need to be reviewed under the Contribution-based Social Security Act.

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