Section 26: Establishment of Fund

1) The Social Security Fund has been established for the operation and management of the social security. The Fund shall remain as a revolving fund.

2) The Fund, pursuant to sub-section (1), shall consist of the amount as stated below:

(a) Amount received from the contributor and employer in lieu of the social security scheme,

(b) Amount worth 10 percent of the basic remuneration of the worker received every month pursuant to the prevalent labor law and the amount added as provident fund by the employer,

(c) Amount to be provided by the employer to the worker in lieu of gratuity, retirement, and other benefits as per the prevalent labor law,

(d) Amount deposited, and to be deposited, in the national-level welfare fund pursuant to the prevalent law on bonus,

(e) Amount collected so far, and to be collected in the future, in lieu of social security tax,

(f) Grants received from the Government of Nepal,

(g) Grants, assistance, or loans received from foreign governments, international organizations,

(h) Amount of interest and profit received from the investment of the Fund’s money,

(i) Amount received in the form of loans from the government of Nepal, and

(j) Amounts received from any other sources.

3) ……………………….

4) The Fund shall obtain approval of the Government of Nepal before receiving an amount as per Clause (g) of sub-section (2).

5) The amount received by the Fund pursuant to sub-section (2) shall be deposited by opening an account in a bank or financial institution of class ‘A’ category licensed to carry out financial transactions pursuant to the prevailing law relating to banks and financial institutions, by acting within the scope of this Act.

6) The account of the Fund pursuant to sub-section (5) shall be operated with the joint signatures of the Executive Director and the accounts chief.