What's Happening?
Nepal has initiated a National Campaign on Social Security targeting informal workers and the self-employed, a significant move to extend social protection to millions currently outside formal safety nets. The campaign, launched by the Ministry of Labour,
Employment and Social Security (MoLESS), the Social Security Fund (SSF), and the International Labour Organisation (ILO) in Nepal, aims to address the substantial challenge of including over 86% of the workforce engaged in informal employment. Women, who make up over 90% of the informal sector, are particularly affected, often lacking access to essential protections like maternity leave and health coverage. Despite nearly 2.7 million workers registered with the SSF, participation from informal workers remains low, highlighting a significant inclusion gap. The campaign seeks to bring together various stakeholders, including government institutions, employers, workers' organizations, and civil society, to expand social security coverage to those most in need.
Why It's Important?
This initiative is crucial as it addresses the significant gap in social protection for informal workers, who constitute a large portion of Nepal's workforce. By expanding social security coverage, the campaign aims to enhance economic resilience and promote inclusive development. The focus on women workers is particularly important, as it seeks to provide them with protections that can prevent income loss due to maternity or illness. The campaign also aligns with Nepal's broader development goals, aiming to increase social protection coverage to 60% of the population by 2028. This move is expected to reduce informality and improve the economic agency of women, thereby contributing to the country's overall economic growth and stability.
What's Next?
The campaign will focus on strengthening the role of local governments in identifying and enrolling informal workers, operationalizing contribution subsidies, and enhancing public awareness. It will also involve improving digital systems and building stronger partnerships across government, civil society, and social partners. The initiative is supported by European Union funding under the Women's Empowerment Programme, which aims to strengthen women's economic agency and reduce vulnerability. As the campaign progresses, it will be crucial to monitor its impact on social protection coverage and the inclusion of informal workers, particularly women, in the social security system.
Beyond the Headlines
The campaign highlights the ethical dimension of social security as a human right, emphasizing the need for inclusive policies that leave no worker behind. It also underscores the importance of addressing social security as both a right and an investment, drawing parallels with Europe's social model. The initiative could serve as a model for other countries facing similar challenges in extending social protection to informal workers. Additionally, the campaign's success could lead to long-term shifts in Nepal's labor market, reducing informality and enhancing economic resilience.
