Dear University Graduates, you are the pillar of the future economy of Nepal. After completion of your university graduation, you will either start up a new business or enter into the job market based on your areas of specialization. Your right choice and right direction will lead to the right position of state. And the ultimate future economy of the country is in your hands.
As per the fundamental rights of article 33(1) of the Constitution of Nepal, every citizen shall have the right to employment. The terms and conditions of employment, and unemployment benefit shall be as provided for in the federal law and as per 33(2) every citizen shall have the right to choose employment.
And as per article 34 (2) of the Constitution, every laborer shall have the right to appropriate remuneration, facilities and Contributory social security.In addition to that as per article 43 of the Constitution of Nepal, the indigent citizens, incapacitated and helpless citizens, helpless single women, citizens with disabilities, children, citizens who cannot take care themselves and citizens belonging to the tribes on the verge of extinction shall have the right to social security, in accordance with law. By considering the provisions of constitution of Nepal, Government of Nepal has introduced contribution-based-ssf-law-2074, rule 2075 and social-security-scheme-operating-procedure-2075-second-amendment (hereinafter called SSF scheme).
Financial positions after 1st Shravan, 2078 under SSF
If you are entering into the private job market after 1st Shravan, 2078 your financial position has been illustrated below as per SSF scheme considering average salary of Rs. 35,000.000 for 30 years. Your total deposit in the retirement fund shall be Rs. 3,569,580.00 and per month Interest income on Bank deposit is Rs. 26,775.00 considering average interest rate of 8.5% p.a. and principal amount shall be refunded at any time to you or nominated your family members after life time.
If you don’t deposit in Bank, this amount Rs. 3,569,580.00 can be used in any or all social purpose like construction/ purchase of house, purchase of plot of land/ vehicle, higher education of children, repayment of loan, medical treatment, business startup, entrepreneurship creation for next generation, marriage of son/ daughter, enjoy in retirement life etc.
Whereas in case of SSF scheme, pension amount shall be Rs. 22,309.88 i.e. below the interest income and principal amount shall be collapsed. And this amount of pension is not sufficient for even basic needs of human beings like flooding, clothing and sheltering after retirement life considering normal average family size of Nepal (4-5 members) where you had contributed Rs. 3,569,580.00 which is your tax paid earned during service time to the Government. What is the time value and opportunity income of Rs. 3,569,580.00 is you know better terms of rupee. All facilities proposed in this SSF scheme are provided in service time only which is peanut type in nature and difficult to take these facilities considering the health situation of Nepal now.
At this stage of time, life has become for survival only and to be compromised on all needs and wants which could not be covered during service time although contributors have paid the highest tax rate amount.
As per article 18 (4) of constitution of Nepal, no discrimination shall be made on the ground of gender with regard to remuneration and social security for the same work. However, as per section 15(2), 17(2) and 24(Ga) of the provisions of social-security-scheme-operating-procedure-2075-second-amendment, in case of death of Contributor during service time or after taking 180 months pension, respective husband/ wife or Father/ Mother who has alternative job/pension Income shall not be allowed to take neither principal amount of life time earnings and savings of 28.33% as a PF+ gratuity of Contributor nor pension from that amount.
As per the provisions of SSF, principal amount/ future potential Income shall be collapsed and nobody knows where the money goes although it is Individual’s contribution for his/ her social security, whereas PF/CIT can refund each Individual’s principal with interest amount at the time of retirement.
Moreover, as per provision of section 35 of the same procedure, any facility given under SSF can be suspended on recommendation of the Government if they cannot run the scheme and there is no guarantee of returning even the principal amount.
Opinion on SSF
As per the Fundamental Rights in Article 17(1), 18 (4), 25(1), 28, 34(2) and 38(6) of the Constitution of Nepal, every Individual has equal rights and any tax paid earnings (PF/CIT+ Gratuity etc.) deposited in any retirement funds account is his/ her private Movable property on which Individual has privacy and cannot be taken over by Government in normal course of action as well as should have Individual’s right/ freedom to deal with either to take back in lump sum or as a pension after retirement.
Dear students, you are the pillar of the future economy of Nepal. Your right choice and right direction will lead to the right position of state. And the ultimate future economy of the country is in your hands. You know better how difficult it is to get a job in the private sector as well as the government sector although you have enough education and knowledge. So, you have to think before all provisions of SSF with relation to your ancestor's private property before entering into the job market in the days ahead considering the political situation of our Country now and think about the social security position under SSF for you and your next generation.
Happy to see prosperous Nepal!
Writer is a Social Campaigner.