Key Highlights of The Social Security Scheme As Announced by The Present Oli Led Government
Key Highlights of The Social Security Scheme As Announced by The Present Oli Led Government
Key highlights of the Social Security Scheme as announced by the present Oli led
government.
The social security scheme for formal sector workers have been announced by Prime
Minister KP Sharma Oli. The scheme is set to initially include medical, health and
maternity benefit; accidental and disability benefit; benefits for dependent family
members, and old age benefit. The scheme has been based as per the contribution-based
social security regulation which is the contribution made by the workers and the
employers.
As per the contribution-based social security regulation, the following has been
mentioned:
To avail medical treatment scheme, the contributor must have deposited their
To avail health and maternity service, the contributor must have worked for 18
The accident and disability security scheme can be availed by workers from
immediately the next day after they deposit their first instalment,
Workers can also receive compensation if they are injured in the workplace or
develop medical complications due to their work condition, however the workers
must have worked for a minimum of 2 years and deposited all instalments on
regular basis.
A worker who has fulfilled the above mentioned criteria is eligible to receive a maximum
of Rs. 700,000 from the fund if they are affected by any aforementioned cause. However,
the workers are not eligible to receive any compensation if they lose their lives due to
natural disasters or any kind of accident not related to the job. Furthermore, if the worker
dies, the fund will provide 60% of the respective workers’ basic salary as pension to the
family members who were dependent on the worker on a monthly basis. It will also
provide 40% educational scholarship every month for children below 18 years of age.
Also, if the workers do not have a spouse or an offspring then the pension amount will be
given to the workers’ parents. If a worker retires from his/her work, then the fund will
provide the worker 60% pension amount till they are alive.
The government has been levying 1% social security tax on basic salaries of all private
sector employees to raise the money required to operate the Social Security Fund.
2. What is broad banding and 401(k) plan?
Broad banding is defined as a strategy for salary structures that consolidate a large
number of pay grades into a few ‘broad bands.’ It is similar to a pay grade system, except
all jobs in a particular category are assigned a specific pay category. It evolved because
organizations want to flatten their hierarchies and move decision-making closer to the
point where necessity and knowledge exist in the organization. With broad banding, a
manager can more easily encourage his/her employees to broaden their skills and
abilities. This is valuable to organizations because employees with broad skills and
stating that it allows for flexibility in terms of pay, movement, and growth of their
employees.
Many employers offer a 401(k) retirement plan to employees as part of their benefits
workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren’t
paid until the money is withdrawn from the account. 401(k) plans offer a good way for
employees to save money for their futures, and for both employers and employees to save
on taxes. If we earn $800 each pay period and elect to defer 5% of our pay, $40.00 is
taken out of our pay and placed in the 401k plan. These contributions are deducted from
our salary on a pre-tax basis. This means that by contributing to a 401k, we actually
lower the amount we pay in current income taxes. For example, instead of being taxed on
the full $800 per pay period, you are only taxed on $760. A 401k is a retirement plan, not