Social Security in Nepal: Schemes, Eligibility, and Legal Provisions

Social security in Nepal is a fundamental right guaranteed by the Constitution of 2015. It aims to provide protection and support to the elderly, disabled, marginalized, and economically vulnerable groups. The government implements both contributory and non-contributory social security programs. The contributory scheme, managed by the Social Security Fund (SSF), covers formal sector workers and includes benefits like medical care, accident protection, pensions, and family support. Non-contributory programs include allowances for senior citizens, persons with disabilities, single women, and marginalized communities. Despite progress, the social security system in Nepal faces several challenges, including low coverage, especially among informal sector workers, limited awareness, and implementation gaps. The government is working to expand the reach of social security schemes and improve delivery mechanisms through digital platforms and local government coordination. Strengthening social security is essential for ensuring social justice and improving the well-being of all Nepali citizens.

Entitled to social security in Nepal

• Senior citizens
• Indigent,
• Incapacitated and helpless persons,
• Helpless single women,
• Citizens with disabilities,
• Children,
• Citizens unable to take care of themselves.

Senior citizen allowance

Dalit and single women senior citizens aged 60 and above, and other senior citizens aged 70 and above, are entitled to receive a government-prescribed social security allowance. However, the Government of Nepal may also provide this allowance to senior citizens below these age limits if they reside in specific areas designated by the government.

Destitute citizens

Destitute citizens are entitled to receive a social security allowance in an amount specified by the Government of Nepal.

Incapacitated and helpless citizens

Incapacitated and helpless citizens are entitled to receive a social security allowance in an amount specified by the Government of Nepal.

Helpless single women

Helpless single women aged 60 and above, such as divorced women who haven't remarried, widows, legally separated women, and unmarried women, are eligible for a government-specified social security allowance. Additionally, those under 60 in the same categories may also receive the allowance if they have no income source, earn less than the government’s set threshold, and are unable to work.

Disabilities

Citizens with total disabilities are entitled to receive a social security allowance in an amount specified by the Government of Nepal.

Child Nutrition Allowance

Children who are extremely destitute, at risk of extinction, or under five years of age, as specified by the Government of Nepal, are eligible for a child nutrition allowance. The procedures for providing this allowance will be as prescribed by the government.

Tribe on the verge of extinction allowance

Citizens belonging to tribes on the verge of extinction are entitled to receive a social security allowance as specified by the Government of Nepal. The procedures for providing this allowance will be prescribed by the government.

Citizens who are unable to take care of themselves

Citizens who are unable to take care of themselves are entitled to receive a social security allowance as specified by the Government of Nepal. The procedures for providing this allowance will be prescribed by the government.

Process of obtaining Social Security in Nepal

• Step 1: Verify that you meet the eligibility requirements.
• Step 2: Apply through the local government office.
• Step 3: Wait for the local authority’s decision on your application.
• Step 4: Receive the Social Security benefits if approved.

Step 1: Verify that you meet the eligibility requirements

Before applying, you must ensure that you qualify for social security benefits. Eligibility depends on factors such as age, disability, income level, marital status, or belonging to a vulnerable group (e.g., Dalits, single women, endangered tribes). The specific criteria vary depending on the type of allowance.

Step 2: Apply through the local government office

Once you confirm your eligibility, you must fill out and submit an application to your local level government office (such as ward offices or municipalities). You may be required to provide supporting documents like citizenship certificates, medical reports, or income statements.

Step 3: Wait for the local authority’s decision on your application

After submission, the local government reviews your application and verifies your information. This may involve checking documents, conducting interviews, or field verification to ensure that you meet the criteria.

Step 4: Receive the social security benefits if approved

If your application is approved, you will be registered for the social security allowance. Payments are usually provided regularly (monthly or quarterly) as specified by the Government of Nepal, and the amount may vary based on the category you fall under.

Social Security Schemes

• Medical Treatment, Health and Maternity Protection Scheme
• Accident and Disability Protection Scheme
• Dependent Family Protection Scheme and,
• Old Age Protection Scheme

Contribution

The Employer and the Employees are required to contribute certain amount of the employee’s basic salary each month to the Social Security Fund. The rate of contribution is as follows:

Employee- 11% of the total employee’s salary

Employer- 20% of the total employee’s salary

Allocation of Contribution

An identity card is required for Social Security.

The provision requires each local-level government to issue standardized identity cards to all citizens eligible for social security allowances, and to include the details of any guardian, curator, or caretaker on the card when the beneficiary cannot act on their own. Local authorities must review and update disability related identity card records annually, and any additional rules about these cards will be set by regulation. Importantly, individuals who have not obtained this official identity card will be ineligible to receive their social security allowance.

Offense and punishment

• Obtains a social security allowance by giving false information,
• Claims or receives it in any way that violates the Act or its rules,
• A guardian or other person misuses an allowance paid to a beneficiary,
• An official misappropriates the funds while distributing them, or
• Submits false documents or recommendations, commits an offence under the Act.

The offender must first repay the improperly taken amount and then pay an additional fine equal to that amount.

If an official embezzles social security funds during distribution (offenced) or issues a false recommendation (offencee), that official is punishable according to the penalties set by the general law in force, in addition to repaying any misused money.

Social security in Nepal has evolved into a multipronged safety net that blends contributory insurance for formal sector workers with non-contributory cash allowances for the country’s most vulnerable citizens. Anchored in the 2015 Constitution, the system now covers senior citizens, persons with disabilities, single women, destitute families, endangered ethnic groups, and children at nutritional risk, while the Social Security Fund protects formal employees against sickness, accidents, old age income loss, and family bereavement.Yet large implementation gaps persist. Informal sector workers, who make up the bulk of the labor force, remain largely excluded; awareness of entitlements is uneven; digital payment systems and identity card registration still fall short in some rural wards; and leakages or misuse occasionally undermine public trust. Meeting these challenges will require tighter oversight, universal digital ID coverage, expanded outreach, and better coordination between federal, provincial, and local governments. Strengthening social security is thus indispensable to delivering the constitution’s promise of social justice and inclusive prosperity for every Nepali.