Social Security For Better Society

The concept of social security is intended to bring about equality, prosperity and social justice. In an underdeveloped country like Nepal, social security is all the more important. A country cannot develop until its marginalised and vulnerable people are empowered through government interventions such as a social security system. In Nepal, a large number of people are living in poverty. They should be provided with social protection through social benefits and services to enable them to come out of the morass of poverty. 

The Constitution of Nepal 2015 has the provision for social security. The provision is in line with international standards. Article 43 of the constitution guarantees social security as a fundamental right for poor and vulnerable people – indigent citizens, single women, citizens with disabilities, people not able to take care of themselves and citizens of endangered tribes. The provision ensures economic equality, prosperity and social justice for such groups of people. 

Legal mechanisms

There are several social security schemes in force in Nepal. There are also several legal mechanisms designed to ensure equality, prosperity and social justice. The social security schemes are governed by the Labour Act 2074 and Regulations 2075, the Contribution-based Social Security Act 2074 and Regulations 2075 and the Social Security Schemes Operational Directives 2075. The basic thrust of these schemes is to ensure that people have access to social security schemes so that their welfare is enhanced. 

It is a matter of pride to mention that Nepal was among the early South Asian pioneers to initiate social protection schemes. The country has made tremendous progress in expanding social protection schemes to vulnerable groups, including senior citizens, indigenes and endangered ethnic groups. The old-age allowance system launched in 1994 during the premiership of late Man Mohan Adhikari with a modest allowance of Rs. 100 per person per month has grown into a prominent form of social security for senior citizens. At the time, those 75 years old or above were eligible for the allowance. 

The allowance has since increased to Rs. 4,000 per month and the eligible age has also been reduced to 68 or above. This type of social security is popular among the elderly. When it comes to such social security for senior citizens, Nepal’s performance is better than global and regional averages. There are two types of social security systems in Nepal: contributory and non-contributory. Under the contributory system, the beneficiary is required to contribute a certain amount of money. For example, the beneficiary is required to contribute 11 per cent to the social security fund. And the employer contributes 21 per cent. 

Under the non-contributory system, the beneficiary is not required to make any contributions. The state provides social protection for targeted groups through the state coffers. The old age allowance system is such a system. However, there is a long way to go on the social security fund. Identifying and providing social protection for marginalised and vulnerable groups is a challenge, indeed. Studies show that 17 per cent of the people are covered by at least one social protection benefit. This has put Nepal at the bottom of the Sustainable Development Goals of the UN tracker (ILO, 2022).  Only one third of the population has access to social protection measures. This means 20.1 million people are deprived of any form of social protection. 

There are also big gaps in coverage for children, people of working age, especially those working in the informal sector and engaged in self-employment, maternity protection and universal healthcare. However, the Social Security Fund has been expanded to cover workers working in the informal sector, those who are self-employed and even migrant workers. Prime Minister Pushpa Kamal Dahal ‘Pranchanda’ announced this the other day. In the past, the Employee Provident Fund and the Citizens Investment Trust were the only social security measures. With the introduction of the Social Security Fund, the scope of social security has expanded. 

But there are still challenges of enrolling all the workers, including bank employees, in this scheme. While on the topic of social protection, it would be relevant to mention the Child Grant. The Child Grant is a federal government programme introduced in 2009 in five districts of the Karnali region. As reported in 2022, the Child Grant covers 40 per cent of children under 5 and 9.5 per cent of all children in the country. Under the programme, a child gets Rs. 532 per month, the lowest of all the benefits provided by the state. 

Inclusion policy 

Despite this, studies have found that the programme has positive effects on the impoverished families concerned and the economy to some extent. On the one hand, it has encouraged families to register the birth of their children, while on the other it has enabled such families to overcome economic hardships to a certain extent. It has also reduced child labour to some extent. It has also led such families to believe that the government takes care of them. 

The social security system is a good initiative on the part of the government. There should not be a break in its continuity. For this, the government should manage adequate funds. The government and the organisations concerned should see to it that its credibility, stability and sustainability are maintained. It is incumbent on the government to incorporate all marginalised and vulnerable groups into the system, ensuring that every member of such groups has access to the social security system by adopting the policy of inclusion. Every citizen has a right to a dignified life. Although a fully egalitarian society cannot be built, equity, prosperity and social justice can be achieved through the social security system, which may help in building a better society.    

 (Maharjan has been regularly writing on contemporary issues for this daily since 2000.)