Result achieved
Linked projects
- - Nepal - Institutional capacity, legal and policy frameworks are strengthened for the improvement and extension of social protection coverage (country programme 2016-17)
- NEP/15/51/JPN - Actuarial Studies for the Establishment of Social Security Schemes (ASSESS) : ILO Technical Assistance to the Social Security Fund in Nepal
Outcome summary
The Employees Provident Fund (EPF) designed new regulations in September 2016 in line with its Act to implement a contributory pension scheme.Outcome achieved
The Employees’ Provident Fund (EPF) designed new regulations in September 2016 in line with its Act to implement a contributory pension scheme. The envisaged pension scheme aims to cover workers in the private sector. As per the projection by the actuarial valuation, the total number of contributors in 2016–17 would be 282,464 and would increase to 4.3 million by 2060–61. The contribution rate is 20 per cent of insurable earnings shared equally between the employer and the employee. The maximum insurable earnings are established at five times the minimum wage (Nepalese Rupees 40,000 in 2015).
ILO's contribution to the outcome
The ILO organized study visits, a training and a workshop that contributed to enhance knowledge and technical capacity of the EPF’s management on pension schemes. The ILO developed the actuarial valuation of the contributory pension scheme for private sector workers for the EPF. The ILO also supported the drafting of the regulations in line with the EPF amended Act. The ILO supported the EPF through the organization of a tripartite consultation before finalizing the regulations for the proposed Private Sector Workers’ Pension Scheme.