Kathmandu. The number of government offices, public institutions, boards, committees and organized organizations joining the contribution-based retirement fund operated by the Employees Provident Fund is increasing significantly. As many as 4,290 offices and institutions including government offices, public institutions, boards, committees and organized organisations have joined the contribution-based retirement fund by mid-July of the last fiscal year 2081/82 BS.
Around 99,391 contributors from the offices and institutions associated with the fund received around Rs. 10,000 till the end of the last financial year. Rs 15 billion has been deposited in the contribution-based retirement fund.
More government offices and establishments are being added to the contribution-based retirement fund. At the same time, the number of banks, financial sector and the private sector also approaching the fund for participation in the contribution-based retirement fund is increasing significantly.
The Fund has also been providing various facilities to the contributors from its own resources. Accordingly, under the social security facility, the contributors will get accident compensation up to Rs. 2 lakhs. Rs. 40,000 per maternity facility. Rs. 7,500 for general diseases and Rs. 7,500 for general diseases. Up to Rs. 1 lakhs and in severe disease. It has been providing facilities up to 10.
The fund has fixed the annual interest rate to be provided to the contributors on the pension fund amount at 5:00 percent with effect from July 1. In addition, the fund also provides a certain percentage of the profits earned annually to the contributors.
The fund also provides 5 percent interest rate and profit amount annually on the amount accumulated by the contributors. The fund has been providing special loans, house swaps, educational loans, house repair loans, land purchase loans and simple loans to the contributors at a concessional interest rate.
The Government of Nepal has directed all ministries, bodies, public institutions, boards, committees and establishments to implement a contribution-based social security system instead of pension and gratuity to the employees appointed from the fiscal year 2082/83 BS.
After the implementation of the Pension Fund Act, 2075 BS, the Fund has started operating the contribution-based pension fund from July 2076 BS as per the decision of the Government of Nepal and given the responsibility of operating the contribution-based retirement fund to the Employees Provident Fund.
Accordingly, the government has been operating the contribution-based retirement fund from the government office, public institution, board, fund, company and committee by entering into an agreement with the concerned organization after July 1, 2019.
Contribution-based retirement fund includes contribution-based pension, contribution-based periodic pension, contribution-based gratuity and contribution-based lifetime retirement schemes.
