Social and Financial Implications of Social Security Programs

[Joshua Farrell]

What could be the social & financial implications of social security program that affect the perception of employees on applicability of the program?

The Government of Nepal promulgate the Contribution based social security program through the social security Act. The government have no contribution & no tax exemption for any benefit & returns from the SSF. Except some social insurance the beneficiaries will start to get return as pension only after age of 60. Total contribution will be 31% of basic salary, employee & employer will contribute 11% & 20% respectively per month. Participation on program is mandatory for all private organisation. Grievances, debates & discussions are ongoing, even the beneficiaries are not willing to participate as they have alternate funds like CIT, PF & other Insurance schemes.

 

[HayKay]

I don't think there'll be a greater implication than a lack of trust in the program and an ultimate lack of trust in the government at large. This might translate to snowballing effects like inflation and high costs of living.

 

[Smiles20]

From what I have seen in a lot of countries, government usually use the social security programs and unemployment benefits to print more money leading to inflation on the longer-term.

 

[frederick_9]

There won't, in my opinion, be any consequences more significant than a lack of confidence in the program and, ultimately, a loss of confidence in the government as a whole.
This could have cascading impacts like inflation and excessive living expenses.

 

[Nomad]

Social security programs will help the low-income families, however, it will come as a great burden to the government especially if the country is low economy country,

 

[Heatman]

I don't think there'll be a greater implication than a lack of trust in the program and an ultimate lack of trust in the government at large. This might translate to snowballing effects like inflation and high costs of living.

If the government are not promising something that is realistic to those who are interested in being involved in this kind of project, it is going to definitely affect their trust in the program which will make a lot of them to pull out and that is going to mark the end of such problem.