Government data shows that around 4.4 million workers—about 62.2 percent of Nepal’s workforce—remain in the informal sector. Although a policy to include informal and self-employed workers in the Social Security Fund took effect on August 17, 2023, enrollment remains minimal, with only 1,469 contributors registered so far. This includes 809 informal workers and 660 self-employed individuals. Expansion plans for government contract staff and informal workers have stalled at the Ministry of Finance. So far, only 114 local governments have signed agreements, and just six are actively implementing contribution mechanisms.
