United Nations
Information Centre | Nepal
An analytical briefing on the social security sector in Nepal
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More than 90 per cent of the total labour force in Nepal comprises workers and
employees in unorganised and informal sectors. Unfortunately, there are no any social
schemes for them.
The social insurance schemes benefit only workers in the formal sector. These include
pension and gratuity benefits, the Employees’ Provident Fund and the Citizen Investment
Trust as well as insurance for disability, maternity leave, work-related injury, sickness and
survivors’ benefits. The pension and gratuity benefits and cash transfers are financed
through general tax revenue.
The modest social assistance programmes that exist today include social cash transfers,
in-kind transfers, primary health care and basic education. Labour market interventions
include an employment programme in Karnali Zone, rural community infrastructure
works, technical and vocational education training, skill and entrepreneurship
development programmes, and child labour elimination and labour law reform
programmes. Social security costs consume 15 per cent of the current expenditure for
which funding remains a concern. Therefore, it is strongly recommended that workers
and self-employed contribute to the improvement and extension of social security
benefits during the period of their employment.
Until now social security schemes have been introduced one after another without any
systematic policy framework. Governed by their own law, regulations, directives and
guidelines, there is no systematic institutional strategy to implement and monitor them.
It is hoped that passage of the proposed Labour and Social Security Bills will create the
legal basis, inter alia, to implement a comprehensive social protection system for the
private sector.

#Socialsecurity #Insurance

MoLE/GoN, ILO ,   (2017 )
Type / Script:
Annual Report in English
Thematic Group:
 ILO : International Labor & Labor
14.05.04  -  Welfare And Social Services
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