The decision of the government to use some 80 percent of the money that workers contributed in the Social Security Fund (SSF) to finance political programs like establishing Marxism Study Centre is shameful. More than that it is a violation of existing financial law since it clearly states that one percent social security tax that all workers pay need to be maintained in a separate revenue account for the purpose of funding social security programs like health insurance, accident cover, lay off benefits and other financial cushions.

However, it is disturbing to note that of the total collection of Rs 450 million, the new budget has allocated Rs 100 million to the fund whereas the remaining Rs 350 million has been transferred to support political programs.

Still worse: Concerned officials do not even regret the indiscipline. Rather they argue there is no need for such a huge amount of money as the fund manager, Social Security Fund Management Committee, is yet to commence it operation. But who is to blame for it? Undoubtedly, it is the government itself. Though the government appointed all members of the committee last year, it was not given enough budget and other support to make it strong enough to start negotiations with service providers for the implementation of the employee welfare schemes.

Worrisomely, the situation is not better this year since the government has again allocated a meager 20 percent of the total sum that is estimated to need to kick start the much-sought social security program. This is unfair. In words, the government says social security of workers is its top priority, but in action it has acted otherwise.

Hence, we urge the government to straighten its priority. The government must provide adequate budget to the fund manager and push it to implement the programs at the earliest. The Ministry of Finance should instantly stop misuse of SSF and transfer all the money paid by the workers to the fund. Instead of leaving the enactment of SSF Act for the next fiscal year, as cited in the budget, we urge it to enact the same this year so that the extent of contributions of the state and the employers in SSF could be decided at the earliest. Otherwise, only forcing workers to contribute in the fund will be unjust. We demand the government to uphold the idea behind the fund and work on that line.

Published on: 21 July 2011 | Republica