Employees of banks, financial institutions, and insurance companies have demanded to amend 15 points in the Social Security Fund Act, rules, and procedures. Employees’ unions of various banks and financial institutions and insurance companies have submitted joint suggestions to the fund.


Employees of banks, financial institutions, and insurance companies have joined the Social Security Fund in accordance with the existing rules, regulations, and procedures of the Social Security Fund, which has created a situation where the employees working in this sector have been deprived of the services they have received through collective bargaining.


The employees’ unions have requested to amend the Social Security Act, Rules, and Procedures and create an environment for joining the fund.

Following are the suggestions/demands made by the employees’ unions of Banking Financial Institution: –

1. As there are some provisions in the law, rules, and procedures of the contribution-based social security scheme that are contrary to the fundamental rights such as the right to equality, the right to property, the right to labor, and the right of the consumer as provided in the constitution of Nepal.


2. Contrary to the provision in Article 34 (3) of the Labor Act, 2074 BS that the services provided to the employees cannot be reduced, it should be fully guaranteed by the Social Security Act that the benefits provided by the social security procedures will not be reduced.


3. The provision in Article 64 of the Contribution Based Social Security Act should be amended immediately to frustrate the right to collective bargaining guaranteed by the ILO Convention, 1949 (No. 98), the Constitution of Nepal, and the Labor Act of Nepal, 2074 BS.


4. Pursuant to Sections 52 and 53 of the Labor Act, 2074 BS, there is a provision to transfer the amount of provident fund and allowance in other approved retirement funds established in accordance with the law to the Social Security Fund on the one hand and the pre-date contribution fund in Article 19 (4) (c) Provision should be made in the Act for the concerned workers to take the payment themselves or keep the amount in other retirement funds in the same fund if they do not want to transfer the amount due to the gratuity. Also, the double tax burden in the existing procedure should be abolished.


5. The provisions mentioned in the Social Security based on the contribution of government employees in the Retirement Fund Act, 2075 BS should be made applicable to all the contributors affiliated with the Social Security Fund. The provision in the Social Security Scheme Operation Procedure, 2075 BS should be amended and included in the Contribution Based Social Security Act.


6. Point no. 24 C; According to this, if the contributor dies without receiving a pension for 180 months after starting to receive a pension, if his / her spouse has alternative employment, the amount deposited by the contributor during his/her lifetime should be ensured to his / her family or the person of his / her choice.


7. Due to the provision of suspending the social security scheme at any time in point no. 34 of the Social Security Scheme Operation Procedure, all the employees are worried that their contribution will not be secured.


8. According to Article 15 of the Retirement Fund Act, 2075, formulated for government employees, even if a government employee is disqualified for future government service, he will get back the amount deducted from his salary and the interest paid on it. Similarly, the provision of Article 19 of the same Act does not cover the number of government employees deposited in the fund. Equal treatment should be given as the guaranteed rights are unequal.


9. While distributing the contribution amount, there is no clear criterion and basis on which the amount of subsidy will be given during retirement and the amount of provident fund will be given as pension in the pension scheme. Therefore, it should be ensured that the amount of the provident fund from the old age security scheme will be received in a lump sum with interest during retirement and the amount of gratuity will be applied to the old age protection scheme on the basis of contribution and income tax will be fully exempted.


10. By amending the provision that only 80 percent of the amount deposited in one’s name can be taken after 3 years of joining the social security fund, there should be an arrangement to take a loan up to 90 percent at any time.


11. Looking at the arrangement regarding the distribution of the contribution amount of the employees contributing on or after 1st Shrawan, 2078 BS, it is seen that only the amount equal to the interest earned by calculating about 7 percent of the contribution amount will be given as pension in the pension scheme. Even if the amount is kept in the bank, the return on the contribution of the fund should be more attractive as even the principal will be safely returned by earning more interest than that.


12. Isn’t the social security scheme trying to say that you have no future in this country by taking away our money from all the professionals in this region who are motivated to shed blood and sweat in the motherland in the hope of a happy future for themselves and their dependents due to the services and social security of banks and financial institutions and insurance companies? Unanswered! Derelict employees!


13. The issue of affiliation to the Social Security Fund should be made voluntary like the Employees Provident Fund established under the Social Security Fund Act, 2074 B.S. and the Citizens Investment Fund established under the Citizens Investment Fund Act, 2047 BS.



14. As per the suggestion of this union in the Social Security Fund Act, Procedure, and Rules, the period for enrollment should be extended for one year only after the amendment.


15. Item No. of Social Security Scheme Operation Procedure. If there is any need to amend the working procedure in Article 36, the Ministry can make amendments at any time on the recommendation of the Board of Directors.