Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Social Security Fund (SSF) has launched a nationwide campaign to bring informal and self-employed workers under Nepal’s social security system, as enrollment from these segments has remained far below expectations.
The campaign was formally inaugurated on Wednesday at a programme in Kathmandu by Minister for Labour, Employment and Social Security Rajendra Singh Bhandari.
According to SSF data, a total of 2.699 million workers are currently enrolled in the Fund. However, participation from the informal economy remains negligible, with only 809 workers from the informal sector and 660 self-employed individuals registered so far.
Officials said the campaign aims to address structural barriers, low awareness, and trust deficits that have prevented informal and self-employed workers from joining the contributory social security scheme, despite their dominance in Nepal’s labour market.
ILO Backs the Initiative
Speaking at the event, International Labour Organization (ILO) Nepal Director Numan Özcan said extending social security coverage to informal workers is critical to preventing them from falling into poverty.
“If informal-sector workers are included in social security programmes, it can play a decisive role in protecting them from slipping below the poverty line,” Özcan said.
He added that the ILO is ready to support Nepal in expanding social security coverage for informal workers through technical assistance, awareness programmes, and policy coordination.
A Large Coverage Gap
Nepal’s labour market is overwhelmingly informal, with a majority of workers engaged in agriculture, small trade, transport, domestic work, and self-employment. However, the SSF’s enrollment figures indicate a significant coverage gap, raising concerns about long-term income security, health protection, and old-age benefits for millions of workers.
Government officials acknowledged that without targeted outreach and flexible contribution mechanisms, informal workers are unlikely to voluntarily enter the social security system.
The newly launched campaign is expected to focus on awareness building, simplified enrollment procedures, and institutional coordination with local governments and worker groups.
Policy Priority
The Ministry of Labour, Employment and Social Security has identified the expansion of social security to informal and self-employed workers as a key policy priority, aligning with Nepal’s commitments to decent work, inclusive growth, and international labour standards.
Authorities said further details on incentives, contribution structures, and implementation modalities for informal workers will be rolled out in the coming phases of the campaign.
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