Older People and Social Security System in Nepal

  


    
SN

    
Group

    
Monthly    Allowances in NRs

  

  


    
1

    
Elderly above 68 years

    
4000

  

  


    
2

    
Elderly from Karnali Province above 60 years

    
4000

  

  


    
3

    
Elderly from Dalits above 60 years

    
4000

  

  


    
4

    
Single women above 60 years

    
2660

  

  


    
5

    
Widows

    
2660

  

  


    
6

    
Endangered ethinic groups

    
3990

  

  


    
7

    
Disabled (Fully- Red card holder)

    
3990

  

  


    
8

    
Disabled (Blue card holder)

    
2128

  

  


    
9

    
Children below 5 years (Dalits & Karnali    Province)

    
532

  

Table 2: Classification of people receiving social security allowances and amount

in Nepal.

2011 census data shows total population growth rate was 1.35 % and older person’s growth rate was 3.59% (Chalise, 2020; [1]. If the elderly population continues to grow at the annual growth rate of 3.59% per year, 2.15 million elderly of 2011 will double in 19.22 years [2] i.e in 2031 we will have around 4.30 million older persons 60 years and above. Preliminary census result of 2021 shows that population growth rate has decreased to below 1%, it shows the trend of fertility is going down to below replacement level and proportion of older population will increase rapidly in the coming decades. Further, latest estimate of 2021 shows, TFR of Nepal is below 2, IMR 23.4, CDR 6.3 and life expectancy increased to 71 years [24]. It shows over the last two decades, Nepal has experienced very rapid demographic changes i.e., significant declines in its total fertility rate, infant mortality rate, crude death rates, decrease in population growth, alongside significant improvements in life expectancy [4]. In the last three decades life expectancy increased from around 54 years to 71 years, that implies in every 1.7 years and 1 years life expectancy increased in Nepal [3]. For the country like Nepal, which has not prepared anything for the rapidly growing population, this is going to be a great challenge.

Nepal’s Demographic Transition and Aged Society

Due to the declining fertility rate, declining mortality rate and increasing life expectancy, the young population under 15 is decreasing but the relative size of the population in the 15-59 age group is increasing.

Comparison of the population pyramid of the Nepal (1997-2017) clearly shows that the new cohorts in recent years are shrinking. So there is no doubt that Nepal is in a demographic transition and stands to gain its demographic dividend.

On the other hand the proportion of older population is increasing continuously. UN data shows that Percentage of older persons (65+) was 1.9 percent in 1950, 3.3 percent in 1980, 3.8 percent in 2000, 5.0 percent in 2010 and 5.9 percent in 2017 (UN, 2015). UN projection shows that Nepal will reach in aging society (7% elderly 65+) in 2028 and aged society (14% elderly 65+) in 2054. It will take 26 years for Nepal, to reach from aging society to aged society [4].

Cultural Part of Caring in Nepal

In Nepal, the family, as a social institution, is the main source of support and care for its elderly people. Family has the responsibility towards elderly with day-to-day activities and giving them all kinds of support [2,10]. Most Nepalese people follow the Hindu religion [1]. Nepali Hindu society, like Indian Hindu society, is structured partly by the notion of life that has four stages (ashramas) and that life is driven by four goals: Brahmacharya (sexual abstinence or the life of a student), Grihastha (Marital life or householder), Vanaprastha (life in the jungle) and Sannyasa (asceticism) [7]. Each life stage prepares for the next stage, with the final goal of attaining redemption, moksha, from the cycle of rebirth. In the fourth and final stage of life, sannyasa, an individual is expected to sever all worldly ties in order to realize full inner spirituality [2,7]. Hinduism contributes to the Nepali value system through the goal of Dharma. Dharma means duty and refers to the responsibilities a person has in his everyday life according to his place in the life cycle. The values in Hinduism are embedded in everyday life. Knowledge of customs and norms, and compliance with these traditions is expected not only by family members, but by the surrounding community as well [2].

Nepali culture requires that children care for their parents well into old age, making care giving in Nepali families a cultural practice. In fact, a child takes it as a blessing from God to care for their parents and many even consider it a ‘punya,’ or accumulation of good karma. Ordinarily, the son has sole responsibility to care for his aging parents [2,17]. Not doing so brands him a failure. In Nepali families, the elders of the house are treated with high regard, especially the men. Traditional values, instilled during childhood, regard older and wiser people with respect and honour. Further, it is considered immoral and cruel to neglect the needs of one’s elders, making care giving in Nepal a highly important task [2].

In the hindu culture the common cultural explanations for taking on care roles included feeling compelled to care for one’s family, akin to but distinct from filial piety (respect for elders and parents) [28]. Cultural gender norms remained important, but they are not the sole motivators of care expectations. Studies from India and Nepal show a key reward for care providers was the hope that providing their loved one care would result in this being their last re-birth, offering them a better birth or life in the next life. Care giving appeared distinct from seva, a Hindu concept of selfless service [2,28].

Nepali culture shows traditional family values, including revering elders, and providing care and support to the elderly, is considered a social norm and a moral duty for family members [7]. Anecdotal evidence suggests that most primary care giving is provided by either wives or daughters-in-law. Daughters, once they get married, move to the husband’s home and take care of the husband’s family. This is considered their major responsibility [17]. As there is no formal care system of the elderly developed [21], still parents directly or indirectly think of their children as insurance for their old age. Taking care of older parents is considered a responsibility of children, especially sons [7]. But, recently with the nucleation of family and permanent migration of son’s family to foreign countries, daughters are also increasingly taking care of their parents [17]. It shows the chaning pattern of care system different than traditional norms and values.

Living Arrangement of Nepalese Elderly

The living arrangement of the elderly in Nepal is contingent on their level of support [6]. In particular, the availability of care from a spouse or child may be essential to the well-being of the very old or frail elderly [7]. The elderly depend on their children, particularly sons, for support and security in their old age in Nepal.

A latest community study from Nepal shows highest proportion of older people were living with Son/daughter-in-law (66.3%), followed by 11.6% living with spouse, 6.2% were living alone, 6.1% with daughter/son-in-law, 4% unmarried son/daughter, 2.3% with grand children, 1.4% brother/sister-in-law, 1.3% with other family members and 0.9% others. It shows majority of older persons were living with famiy members (81.3%), followed by spouse (11.6%), alone (6.2%) and others (0.9) [27]. This study further shows the proportion of living alone increases with age and among high caste (Brahmin/Chhetri) and having poor source of income older people.

Major causes of living alone were having no own children, children live far from parents, no support from children, marriage of daughter, death of spouse and personal desire also [27].

In the Nepali culture, still majority of parents think having children as insurance for old age. There is no other social security system well developed till now although government has initiated some good things recently [2,21]. Less than 7 percent of older people supposed to receive pension from government [6]. In such a situation living alone or only with the spouse is really a challenging to get required support during old age. With the effect of modernization, international labour migration, trends of increasing younger generation going aboard for higher education, this traditional living arrangement with children will further deteriorate in the coming days and proportion of living alone and with spouse only will increase.

Social Security in Nepal

The idea behind the concept of social security is that the state shall be responsible for protecting its citizens against certain contingencies of life. There is no such a universally accepted definition of social security (Social security, nd). The definition of social security may be different from country to country according to the prevailing social legislations, culture, traditions, and principles. The basic principle of social security implies collective action by the community to help a member against misfortunes and wants she/he cannot meet with her/ his own resources [21]. It is based on business ethics “ideals of human dignity and social justice” (Ahmed, 1991). Matridevo Bhava (regard your mother as a god), and Pitridevo bhava (regard your father as a god) were traditional norms and values system prevailing in Nepali society [7]. Higher age is considered respectable in different social functions [17].

In Nepal, the economy is dominated by agriculture. More than 70% people still report working on agriculture sector [1]. Agriculture is the main source of food, income, and employment for the majority of Nepalese. It provides about 31.7% of the Gross Domestic Product (GDP) (Wikipedia, nd). A majority of Nepalese elderly tend to work in the informal sectors and lack the provision of regular income after retirement. According to Chalise and Brightman [6], less than 7 percent of the elderly receive a pension and the majority of pension recipients are former security personnel (military and police). The bulk of the elderly population of Nepal receives no pension and most of them depend on familial support and personal savings, or continue working as before. According to Subedi [29], despite their old age, a large proportion (54%) of the elderly contributes in non-economic activities related to the household.

Nepal has launched the contribution based social security program in 2017 through labor act 2017 and Social Security act 2017 [14]. The contribution-based social security scheme is funded through the contributions made by the workers and the employers. While the workers contribute 11 per cent of their basic salary, the employers top up 20 per cent of the workers’ basic salary. Most importantly, the workers are eligible to participate in the social security scheme from day one of their employment, and there is no probation period of employment to be eligible to participate in the scheme. However, workers cannot claim for a particular benefit unless they have made mandatory contribution for a number of months into the fund. For example, to claim a medical benefit, a worker must have deposited his/her contribution regularly for at least six months. But this government program is getting hard time to implement as many private sectors are not interested to join on it.

Sustainability of Old Age Allowances

According to Senior Citizens Act- 2063 individual 60 years and older are considered elderly According to ‘Rights of senior citizens’ a fundamental right, the senior citizens shall have the right to special protection and social security from the state (Senior citizen Act, 2063). The government of Nepal has made the provision of providing allowance to senior citizens. The objectives of the Old Age Allowance (OAA) or Senior Citizen’s Allowance programme are social security allowances in Nepal (including the old-age pension, single woman’s pension, the child grant, disability grant, and endangered ethnicity grant) aim to assist groups considered socially and/or economically vulnerable [21].

Till last year, senior citizens above 70 years were entitled to receive Rs 4,000 in monthly social security allowance. But from this fiscal year elderly above 68 years and above; those aged 60 and above from the Karnali region and Dalit communities; helpless widows and single women; people with disabilities; people from endangered communities and children from some specific regions and communities are entitled to social security allowances. According to 2011 census there were 0.8 million older people 68 years and older. This population is supposed to increase 1.4 million in 2022 [1].

In the South Asian Countries, Nepal expenses large amount of money in the social security. Government allocated Rs 11 Arab in the fiscal year 2070/71, 32.7 Arab in 2073/74 and Rs 100 Arab in 2078/79 [2]. The proportion of social security budget to total budget is more than 5% in the latest budget. Last year, the government increased the monthly allowance for senior citizens to Rs 4,000 from Rs 3,000 per month. As a result, the budgetary allocation in 2021/22 had jumped to over Rs 100 billion, an additional Rs 23 billion than the previous year, for the purpose of social security allowances [22]. With the revised age limit for old-age allowance from this year, the government is likely to face an additional financial burden of Rs 25-30 billion annually.

Further, Political parties wants to go with cheap political slogan to increase the old age allowances and lower the age to 65 years to provide the old age allowances. The decision will put an additional burden on the state offers on various kinds of social security to the citizens. If that happens government has to allocate more than 10% of the budzet in the coming days. In such a situation this program may be a heavy burden to the government and it will be difficult to sustain. In such a situation government should go with alternative model to make some contribution to participate in the old age allowances.

Old Age Home (Briddhashram)

Currently altogether 141 Briddhashramare in Nepal. Of them 75 are situated in Kathmandu and the rest of them in different parts of the country [2,23]. However, many of them are still deprived of proper care, support and basic need for comfortable survival [2]. The elderly are also found refused informally in different temples and monasteries. Although the exact number of the elderly living in these Briddhashrams is difficult to collect (the number remains in flux), the number is very low [2].

Studies show the evidence that older Nepalese individuals are dissatisfied when they live apart from their children [2,13]. Older persons who came to old age home after their children’s out migration are not happy [18] as their children are away from country. However, some of the research shows that due to social change, traditional norms and values are breaking down, resulting in the living arrangement of the elderly, elderly suffering from different chronic diseases [2]. Further due to out migration of children [18], or low quality of life [15,16], older persons abuse [25] people are looking for the alternative way during their retired life.

Some Pertinent Policy Intervention

As the population of Nepal is also aging rapidly, government of Nepal should also focus on the social security of aging population. She should start alternative social security as the traditional care system of older persons also is in crisis in the changing context and present system of old age allowance delivery may not be sustainable. Nepal need to learn many things from other aging society like Japan how they are developing their social security and should make own policy. Some of the policy related suggestions is given below in points:

• Utilize Demographic Dividend for the National Development

• National level Research on Ageing and Proper Policy formulation is needed

• Develop Proper Social Security System reviewing the policy of developed country.

• Introduce health insurance from the government or private level.

• Long Term Care for the elderly who needs full care.

• Ageing friendly policy

• Discourage institutionalization

• Aging in place and community care

Conclusion

Population of Nepal is aging slowly but it is faster than socioeconomic and health services development of Nepal. Traditional living arrangement and traditional care model to older people is also in crisis due to out migration of children and effect of globalization and cultural diffusion. Majority of elderly of Nepal work in the informal sector and do not receive any pension. Old age allowance is quite popular in Nepal. But, it has created large pressure on the government budget and need to work how this system can be made sustainable through some alternative way. On the other hand, Nepal government should introduce appropriate policies to make older people healthy to have quality life when they need support.

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