Govt to raise elderly allowance age to 70

The government is set to raise the age eligibility for the elderly allowance to 70 years. The action plan prepared to implement the recommendations of the 2081 High-Level Economic Reform Commission has been approved by the Council of Ministers.

KATHMANDU, May 23: The government is set to raise the age eligibility for the elderly allowance to 70 years. The action plan prepared to implement the recommendations of the 2081 High-Level Economic Reform Commission has been approved by the Council of Ministers.

Currently, all senior citizens aged 68 and above receive a monthly allowance of Rs 4,000. The government plans to officially set the age at 70 through the upcoming budget. The plan also includes making a national identity card mandatory to receive the allowance, with full implementation expected within a year. As a result, the elderly allowance will be given only to those aged 70 and above who are registered with a national identity card.

The government plans to expand the coverage of contribution-based social security but has not set a specific timeline for this. The Ministry of Finance (MoF) is also preparing to address misuse and duplication of social security allowances in the upcoming budget.

Citizens of districts in the former Karnali Zone and Dalit citizens nationwide receive a monthly elderly allowance of Rs 2,660 upon reaching 60 years of age. Unmarried women aged 60, women who are divorced or legally separated at 60, and widows of any age also receive this allowance.

Additionally, people with disabilities, endangered indigenous groups, and children from designated areas are provided with monthly allowances.

In Fiscal Year (FY) 2016/17, social security accounted for 7.3 percent of the current expenditure, which increased to 19.67 percent by 2023/24, indicating greater pressure on resources.

According to the MoF, the total mandatory government expenditure in FY 2023/24 reached Rs 1,152.40 billion, of which social security and assistance payments amounted to Rs 226.68 billion.

In the current FY 2024/25, the government is implementing a budget of Rs 1,960 billion, allocating Rs 213 billion (11.5 percent of the total budget) for social security. The government had lowered the pension age to 68 from 70 starting FY 2022/23.

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