FNCCI Chairman Dhakal says Social Security Fund Contributions Should Be Invested in Productive Sectors
27th November 2025, Kathmandu
Chandra Prasad Dhakal, the President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has strongly emphasized that the accumulated contributions within the Social Security Fund (SSF) must be strategically invested in the productive sectors of the economy.
SSF Contribution in Productive Sectors
His remarks, delivered on Mangsir 11, 2082, during the 8th annual celebration of the fund at Singha Durbar, Kathmandu, centered on the necessity of utilizing these vast funds to enhance national development and maximize returns.
Dhakal highlighted that the effective utilization of the collected contributions should be safe, sustainable, and return-oriented. He positioned the SSF not just as a reserve for worker welfare but as a powerful financial instrument capable of stimulating significant economic activity.
Critique of Current Investment Strategy and Call for Redirection
The FNCCI President pointed out the current conservative, and in his view, less impactful, investment practice of the Social Security Fund.
Current Status: Dhakal noted that the total contributions collected by the SSF have reached a significant amount, approximately 9.568 billion Nepalese Rupees.
Primary Investment: He expressed concern that this substantial corpus is mainly kept in bank deposits. While bank deposits are considered safe, the returns are often lower and the capital is not directly channeled into industries that drive economic growth and employment.
Redirection Rationale: Dhakal stressed that redirecting these funds to productive sectors could significantly support the country’s growth agenda. Investing in areas such as manufacturing, infrastructure, and technology would not only ensure potentially higher returns for the fund but would also create jobs and enhance the nation’s productive capacity, creating a virtuous cycle where worker savings support the very industries that employ them.
Strengthening the Social Security Framework
Dhakal commended the government for institutionalizing the social security system, acknowledging its benefits for both workers and the formal economy.
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Institutional Strength: He stated that the implementation of the Labor Act 2084 and the Contribution-Based Social Security Act 2074 has significantly strengthened the institutional social security system in Nepal.
Formalization and Tripartite Cooperation: These legal frameworks have also been instrumental in expanding the formal labor market and promoting safe and regulated workplaces. He specifically mentioned that this progress has been achieved through effective tripartite cooperation, involving the government, employers (represented by FNCCI), and workers.
Key Recommendations for SSF Improvement and Expansion
To ensure the long-term success, efficiency, and broader reach of the Social Security Fund, the FNCCI President put forth a series of actionable recommendations focusing on administration, investment, and coverage.
Digital and Administrative Reforms: He recommended that the fund focus heavily on digital service expansion to improve accessibility for contributors. Furthermore, he urged the SSF to take steps to reduce the administrative burden imposed on small and medium enterprises (SMEs) during the enrollment and contribution process, thereby encouraging wider participation.
Coverage Expansion: A critical challenge remains the inclusion of workers outside the formal economy. Dhakal stressed the imperative to integrate informal and self-employed workers into the system, a move necessary for achieving universal social security coverage in the country.
Investment Modernization: He called for a shift towards transparent and risk-managed investment structures. These structures should be modernized according to international labor standards to ensure the safety and optimal returns of the workers’ funds.
Worker Perception and Benefits: Dhakal strongly emphasized the need for the fund to introduce industry-friendly facilities and enhance its promotional activities effectively. This is vital to ensure that workers can clearly perceive direct and tangible benefits from their regular contributions, thereby increasing confidence and compliance.
In closing, FNCCI Chairman Dhakal reiterated the private sector’s dedication, reaffirming the organization’s commitment to fostering a formal, safe, and sustainable labor market. This support extends to worker welfare, ensuring safe labor environments, and contributing to the nation’s long-term economic growth through responsible investment practices of the SSF.
For More: SSF Contribution in Productive Sectors
