As of December 20, nearly 2.7 million private-sector workers in Nepal have been brought under the ambit of the social security system. Until recently, however, access to health insurance, pensions and other social security benefits was widely regarded as the exclusive privilege of a limited number of public servants. This development marks a significant transformation toward fulfilling the constitutional promise of social justice and social democracy.

Nepal has, indeed, made commendable progress in establishing legal and institutional frameworks to strengthen and expand its social security system. The Contribution-Based Social Security Act 2017, along with its accompanying regulations, provides social security coverage to workers across the private sector, including those in the formal and informal sectors, self-employed individuals and migrant workers. Furthermore, the 16th Periodic Development Plan 2024/25-2028/29 sets ambitious targets: Extending social security coverage to 60 percent of the population and reducing informal employment by 22 percent by the end of Fiscal Year 2028. Complementing these efforts, the Integrated National Social Protection Framework seeks to promote contribution-based social security while consolidating fragmented social protection programmes to enhance their overall effectiveness.

While the government has articulated these forward-looking and ambitious policies, and provincial and local governments are making concerted efforts to bring poor and vulnerable workers under the umbrella of the Social Security Fund (SSF), a stark gap persists between policy intent and lived reality. Despite the constitutional goal of guaranteeing contribution-based social security as a fundamental right for every worker, more than four out of five workers in Nepal continue to be employed informally—beyond the effective reach of labour and social security laws.

The reality of the informal sector is not evenly distribiuted. Women are more likely than men to be trapped in informal work: Over 90 percent of employed women work informally, compared to 81.1 percent of men. Informality is even more pervasive among historically marginalised groups. Dalit and Muslim communities face the highest rates, with Madhesi Dalits almost entirely excluded—an alarming 98 percent are engaged in informal employment.

These statistics are not abstract. They represent the farmers who feed the nation, the street vendors who sustain urban economies, the construction labourers who build our infrastructure, and the domestic workers who support countless households. Together, they keep Nepal’s economy running—yet they remain invisible to the very systems meant to protect workers. Most informal workers live with constant insecurity: No insurance, no income protection, no safety net during illness, accidents, old age, or economic shocks. When their rights are ignored, millions of families are left trapped in cycles of poverty and exclusion.

Extending social security to informal workers is, therefore, not only a moral imperative but also a development necessity. Informality and poverty go hand in hand. While only 2.98 percent of formal workers live in poverty, 18 percent of informal workers do. The situation is even more dire for agricultural wage workers, whose poverty rate stands at 37.8 percent—the highest in the country. Precarious working conditions deepen this vulnerability: 42 percent of informal wage workers earn less than the minimum wage, 80 percent rely on verbal contracts that can be terminated at any time, and the vast majority lack protection during sickness, maternity, disability, workplace accidents, or the loss of a family breadwinner. These conditions—low and unstable incomes, job insecurity and absence of social protection—perpetuate intergenerational poverty. Social security is one of the most powerful tools to break this cycle.

The importance of social protection becomes most evident during crises. Shocks such as natural disasters and pandemics do not affect everyone equally; they magnify existing vulnerabilities. The Covid-19 lockdowns were a painful reminder. Daily wage earners and informal workers bore the brunt of the crisis—not because of the virus, but because they had no savings, job security or access to social protection. This experience should serve as a lesson. Social protection measures—health insurance, pensions, maternity benefits and disability or accident coverage—help families survive crises and recover faster.

Strengthening social security is also critical in a country as climate-vulnerable as Nepal. Climate-induced disasters are becoming more frequent and severe, threatening livelihoods and pushing vulnerable populations deeper into poverty. Robust social protection systems play a vital role in climate adaptation by addressing the root causes of vulnerability, reducing inequality and building resilience. They support a just transition by enabling people and communities to cope with climate-related risks.

Finally, extending social security to informal workers is not merely good policy—it is a legal and moral obligation. Nepal’s Constitution, under Article 34, enshrines social security as a fundamental right for all workers, regardless of employment status. Nepal has also expressed its commitment to following the International Labour Organisation Recommendation (ILO) No. 202, which calls on countries to guarantee at least a basic level of social protection for everyone, including access to essential health care and minimum income security. Expanding coverage is also central to achieving the Sustainable Development Goals, particularly those related to ending poverty, promoting health and well-being, achieving gender equality, ensuring decent work, and reducing inequality.

Extending social security to Nepal’s informal workforce must not be treated as an optional measure; it is a matter of human rights and justice that demands urgent action. In the federal Nepal, local governments must be empowered and held accountable to identify informal workers, maintain accurate records, and link them systematically to public services, including social security schemes. At the same time, effective coordination and collaboration among federal, provincial and local governments are essential to operationalise contribution subsidies, as envisioned in the Contribution-Based Social Security Act. Without such coordinated action, policy commitments will remain unrealised promises.

The ILO is starting a National Campaign together with the SSF and the Ministry of Labour, Employment and Social Security to bring the informal workers and the self-employed under the umbrella of the social security system. The motto of the campaign is, “Join Social Security for a secure future for you and your family.”

The time to act is now. We expect all the workers, employers and authorities to support this collective effort and join in the campaign to build a Nepal where no worker is left behind.