- September 11, 2017
- Posted by: Marvin Garcia
Nepal’s Employees Provident Fund (EPF), which operates under the Government of Nepal’s Ministry of Finance, is an example of a well-governed institution providing social security to all private and public sector employees. Its strong governance system makes it a well-rounded institution adopting international standards, providing social security to the entire civil servants working throughout the Kingdom of Nepal.
Prior to the creation of the EPF, Nepal created the Army Provident Fund in 1934 with the intentions of easing financial problems of the army personnel after their retirement. The Fund was broadened a decade later which led to the establishment of the Nijamati Provident Fund in 1944 to manage the scheme for civil servants working in Kathmandu. It was in 1948 that the coverage of the scheme was extended to provide coverage to the entire civil servants working throughout the country.
It is in this context that the Employees’ Provident Fund Department was established in 1959, under the Ministry of Finance and Economic Affairs. This department was entrusted with the management of both the Sainik Drabya Kosh and Nijamati Provident Fund.
Three (3) years after the establishment of the Department, the present Employees Provident Fund (EPF) was established by a Special Act as an autonomous provident fund organization. Since then, EPF has grown by leaps and bounds, and today stands as a strong social security providing organization in Nepal.
With the strong governance system in place and the adoption of international standards to guide its operations, the EPF turned into a successful organization providing myriads of benefits to the public and private sectors in Nepal.
EPF’s “Governance Program” won the 2017 ADFIAP Outstanding Development Project Awards under the Corporate Governance Category.