Social security in Nepal
The declared goal of social security in Nepal, especially the universal pension, is to halve the number of people living below the poverty line by 2015. Great progress has been made since the Communist Party won after a long armed struggle and has participated in the now democratic government, but it is still clearly behind comparable countries. The measures taken so far are of particular benefit to those employed in the public service and to the weakest in society, older single widows. The universal old-age pension in particular is exemplary for an Asian developing country.
development
The traditional social security system was completely family or village based. At the time of the monarchy, the only social security system that existed from the 1930s to the 1990s was the insignificant Employees Provident Fund, created as such in 1961 as the pension fund for civil servants. The first private philanthropic organization Paropakar , founded in 1947, took on the education of orphans. Janakalyan Shanstra was also founded in 1965 on a private initiative . With government support, foundations to fight tuberculosis (1954), leprosy (1970) and help the blind (1968) were established. The Social Welfare Council has controlled and approved all non-governmental welfare organizations since 1992 .
social insurance
Since Nepal is one of the poorest countries in the world, the available funds are by no means sufficient to enable comprehensive social security. Mechanisms for the effective redistribution and integration of security systems are still missing. A complete integration of the entire population into the social security system, which is currently being set up, will not take place for a long time. For 2002 it was estimated that only around 17% of the population, especially in cities, was covered by any part of the social security system. Around 40% of Nepal's GNP is generated in the so-called informal sector.
State employees are compulsory members of the reformed Provident Fund (EPF; Nepalese: Karmachari Sanchaya Kosh ), which is an autonomous organization under a Board of Directors . In 2004 it had over 390,000 members (16% of all employees, 3% of the working population) with assets of NR 45 billion. It is under the supervision of the Ministry of Finance. Private companies can volunteer if they employ more than 10 full-time employees. Domestic workers, part-time workers and self-employed are excluded. Employees make a tenth of their earnings as a contribution, which they can top up voluntarily. Under certain conditions, low-interest loans for building a house or similar are available. Companies are assessed with 10% of their wages.
unemployment
There is no unemployment benefit. Employees in companies with more than ten employees have to accept dismissed staff with a monthly wage per year of service. Those who leave otherwise after at least three years of service receive ½ monthly salary per year (up to 7 years), after which the rates increase.
Accidents at work and disability
Companies with ten or more employees must take out private accident insurance. Those who have had an accident receive full payment of their wages as long as they are in the hospital, otherwise sick pay for a maximum of one year, which makes up half of their earnings. In the event of total incapacity for work, there is a one-off payment of five annual salaries.
Provident Fund members receive a one-off 65,000 NRs for a full EU . In the case of a lower disability determined by a medical officer, the payment amount is 10-25,000 NRs. Others receive the rate provided for in the basic security (currently 500 NR per month). There is a separate supply for miners.
Illness and maternity leave
There is no statutory health insurance, but under the provisions of the Bonus Act 1974 , companies must provide employees and their dependents with access to basic health care. Government-owned clinics offer limited free care to the elderly and expectant mothers. People in need also receive free medicines. Since 1993, wage earners have been entitled to up to 15 days of sick pay (of 50%) per year if they have been with the company for one year.
Under the provisions of the Employment Act (1983), women receive up to 52 days pre- and postnatal maternity leave on full pay, but only for two surviving children.
Old-age pensions
The universal social pension, officially called the Old Age Allowance (OAA), was introduced in 1994 and extended to needy widows in 1995. This is a tax-financed basic security for all Nepalese nationals. Administration is the responsibility of the Ministry of Women, Children and Social Welfare; The Ministry of Local Development is responsible for the payment of services at village level . For ethnic Nepalis who live in certain (poor) districts, there may be higher benefits.
The pension of currently 500 NR per month is paid to needy widows over 60 and all other over 70 year olds (age limit up to 2007: 75). It has been estimated that around three-quarters of those eligible have applied for the benefit, which corresponds to around 7% of per capita income. The cost in the 2006 financial year was 0.23% of Nepal's GNP . Dalits and residents of the Karnali zone can receive the pension at 60. There is no age limit for widows of those who died in the liberation struggle. The blind and those who have lost hands or legs also receive benefits.
The retirement age for a Provident Fund insured for at least 20 years is 58 and can be postponed to 60. There is also accident insurance for members, which pays in the event of disability or to surviving dependents. The pension consists of a tax-free one-off payment, which consists of the sum of the contributions made, which bear interest. The interest rate in 2007 was 5.5%, the state guaranteed 3%. An additional payment is calculated from the amount of the one-off payment multiplied by ⅓% multiplied by the contribution year. 1996-2003 it was also possible to have an annual pension paid out. This was five percent of the one-time payment per year.
Civil servants
The Nepali Civil Service Pension, which is administered separately, can reach up to 100% of the starting salary for the relevant career. Civil servant widows receive up to 100% of the deceased's basic salary for seven years. In 2005, the company switched from pure tax financing to individual pension accounts. Civil servants hired since then now also pay a contribution of 10%. The pension is paid annually by the respective ministries.
Survivors' pension
The surviving dependents of a contributor (i.e. before retirement) in the Provident Fund receive the sum that the deceased would have been entitled to as a one-off payment. If there are several surviving dependents, they each receive a corresponding share. Furthermore, a death benefit of 8,000 NR has been paid since 1990. Others receive the rate provided for in the basic security.
additional
The Citizens Investment Trust (founded in 1990) allows voluntary, tax-free savings in an individual pension. The contributions paid are invested in the capital market.
In 2004, the Poverty Allevation Trust was launched as a separate organization to provide the poor with “help for self-help” at the local level. In 2006, 1.25 billion NR were available from tax and development aid money. It is not yet clear whether the set goals will actually be achieved.
The Public Health Concern Trust, which was founded in 1993 and acts as a health insurance company, is currently active in three regions .
Gurkha pensions
When recruiting their colonial troops, the British have relied on the Gurkhas, who are considered to be particularly warlike, since 1817 . After the Second World War, the British occupation in Hong Kong consisted to a large extent of Nepalese troops. The British pensions transfer payments are an important factor in the Nepalese economy and enable veterans to enjoy a comparatively high standard of living.
The British Gurkha Welfare Society is committed to improving pension payments (£ 2150 equivalent). The aim is to achieve equality of pension entitlements with European British soldiers. Furthermore, veterans, and their widows, who have been with us for less than fifteen years and have received nothing to this day, should also receive payments. There are around 34,000 affected people. Modifications have been debated by the UK Parliament since 2009.
literature
- Ghan Shyam Gautam: Social Security Arrangement in Nepal: Needs and Challenges Ahead. 大阪 産業 大学 経 済 論 集 , Vol. 8, No. 2, ISSN 1345-1448 , pp. 187–230.
- ILO ; Affordable and not an illusion. Costing of basic social protection benefits for Nepal, 2007-2034ILO / RP / Nepal / R.7 Volltext
- Robert J. Palacios, S. Irudaya Rajan World Bank : Safety nets for the elderly in poor countries: the case of Nepal. Washington 2004.
Individual evidence
- ↑ merger of the 1934 founded "Army Provident Fund" and the. Nijamati ( "Civil Servant's Provident Fund") in 1944; Gautam, pp. 103-105.
- ↑ Gautam, pp. 103-105.
- ↑ 9% of GDP, to be invested only domestically, of which 11% in 2005 in government bonds, 35% with fixed interest at banks; Gautam, p. 115.
- ↑ End of 2008: 1 € = approx. 60 NO
- ↑ female officers every 60 days; according to Civil Servant Act (1992)
- ↑ Members of the people of the lozenge receive 1000 NRs
- ^ HelpAge International - Asia / Pacific; The universal social pension in Nepal: An assessment of its impact on older people in Tanahun district; Chiang Mai 2009 ( online )
- ↑ Life expectancy in mountain regions is 11 years below the average. Nepal Human Development Report, 2004, p. 92.
- ^ Teacher 63; Team ranks in the military and police 46-48 (minimum 16 years of service)
- ↑ current sentences