Kathmandu — A contribution-based social security system will be implemented for employees appointed from the upcoming fiscal year 2082/83 instead of pension and gratuity.

The Ministry of Finance on Friday issued a circular to all ministries, regulatory bodies, public institutions, boards, committees and institutions asking them to make arrangements to implement the social security system.

The Ministry of Finance has also requested to inform that the Government of Nepal will not bear the liability created due to not implementing the contribution-based social security system.

Currently, the ‘Plan-Based Social Security Act, 2074 BS’ and the ‘Retirement Fund Act, 2075 BS’ for government employees are being implemented to provide social security to employees, laborers and other individuals. According to which, the contribution-based social security system was implemented from 2075 BS.