June 25: Employees of banks and financial institutions (BFIs) as well as insurance companies have warned of a strike against the contribution-based Social Security Fund (SSF) if their concerns are not addressed.

Employees' unions of about two dozen banks, financial institutions, and insurance companies issued a joint statement on Thursday, June 24, urging the SSF to consider their suggestions.

The employees have been protesting against the mandatory provision of joining SSF and have demanded voluntary participation. They have also submitted dozens of suggestions after the Social Security Fund directed all private sectors to get registered in the government scheme by mid-July.

According to the employees' union, the pressure of the social security fund has created panic amongst the BFI's employees.

“The pressure from the fund has made a psychological impact and has affected the productivity of the employees. Therefore, we are unable to be join the existing plan of the fund,” mentions the press statement.

"If we create unnecessary fear, intimidation, and pressure in this area by ignoring the suggestions given at various period to amend the provisions of the Act, Rules, and Procedures, we will be compelled to start a movement against the scheme," the statement said.

The employees’ unions had earlier submitted a 14-point recommendation to the fund. As some provisions of the contribution-based Social Security Act, Rules and Procedures do not favor the employees, amendments are necessary to make them in favour of the workers and guarantee that the services provided to the employees will not be reduced. 

According to Clause 19 (4) (c) of the work procedure of SSF, if the workers do not want to transfer the amount from the provident fund and gratuity allowance to the SSF before the date of commencement of contribution to SSF, the contributor can receive the amount themselves or deposit the amount to any other retirement fund. However, this provision is not mentioned in the Social Security Act and the employees have demanded the SSF to include it in the act as well, besides suggesting the fund to remove double taxation for them.

Similarly, they suggest that in case of death of the contributor with 180 months of contribution to the fund, the deposited amount should be returned to his / her family or the person he/she has nominated.

The employees have also demanded amendment of the provision that allows them to take out only 80 percent of the amount deposited after three years of joining the social security fund and to make it possible to take loans up to 90 percent at any time.