Old Age Pension Scheme in Nepal Rudra Khatri Secretary General, Independent Transport Workers Association of Nepal-ITWAN Affiliated with GEFONT Nepal

Information about workers in Nepal Nepal is poor and least developed country Around 12 million workforce in Nepal Most of them unemployed or underemployed Employed work also are not covered by law 80 percent workers working in informal economy and labour law do not applied.

Coverage of Labour laws Private sector where more than 10 workers working, In case of less than ten workers, some provision applied. Such as Minimum Wage Sick leave Letter of appointment Remedy in case of nonpayment of wage

Social Security Benefits for public Sectors Old Age Benefit – yes Medical Benefit – yes Sickness benefit - yes Accidental Benefit – yes Maternity Benefit- yes Disability Benefit – No (but sometime) Dependent Benefit – No (but sometime) Unemployment Benefit - No

Social Security Benefits for private sector where labour law applied Old Age Benefit – yes Medical Benefit – no (only accidental) Sickness benefit – yes ( sick leave half paid) Accidental Benefit – yes Maternity Benefit- yes Disability Benefit – Yes Dependent Benefit – Yes Unemployment Benefit – No (only retrenchment compensation)

Old Age Benefit Normally 3 types of old age benefit practiced in Nepal Provided Fund – Applicable to private and public sector Gratuity - Applicable to private and public sector Pension – only for public sector All benefit to permanent workers only

Pension Scheme Pension scheme applied to Government Employee Nepal Army Nepal armed police force Nepal police

Pension Scheme Cont…. Pension scheme applied to Government school teacher Teachers and employee of Government run University Employee of Government run banks

Eligibility of Pension After completion of 20 year of service Based on service period In not entitled to receive pension, gratuity will be paid Termination on disciplinary ground, no pension is paid Employee may receive pension even they are age of below 40 after satisfied the required number of service

Universal pension scheme It was introduced 17 years back when Manamohan Adhikari, founder of Trade union of Nepal become the prime Minister of Nepal Now Rs. 500 Provided to old aged people In case of male after 75 years In case of female after 65 years

GEFONT Demands Law should change social security for all No workers should be out side the social security scheme including old age benefit It should be contributory and workers, employers and government should contribute in the scheme. But workers contribution should be less

. Thank you