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Last updated: 05/4/2024

Programme Details

Programme objectives

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.

References
World Bank 2016. “Project Appraisal Document On A Proposed Credit In The Amount of SDR107.6 Million (US$150 Million Equivalent) To Nepal For A Strengthening Systems For Social Protection And Civil Registration Project”. Washington, D.C.: World Bank. <https://documents1.worldbank.org/curated/en/609981480906831854/pdf/1480906826924-000A10458-P154548-PAD-for-Board-Nov-8-2016-ym-11112016.pdf>. Accessed 16th Oct 2023.
Start date
1995
References
Irudaya Rajan, S. 2003, Old age allowance program in Nepal, Accessed 16th Oct 2023. Accessible: https://www.gov.uk/research-for-development-outputs/old-age-allowance-program-in-nepal
Coverage
1.496 million people (44% of all social security beneficiaries)
References
UNICEF, 2023.SOCIAL PROTECTION BUDGET BRIEF UPDATE: FY 2022/23. Accessible:https://socialprotection.org/discover/programmes/disability-grant-0/edit. Accessed: 04 April 2024
Programme expenditure
NPR 62.4 (2021-2022) (65% of social security allowance expenditure)
References
UNICEF, 2023.SOCIAL PROTECTION BUDGET BRIEF UPDATE: FY 2022/23. Accessible:https://socialprotection.org/discover/programmes/disability-grant-0/edit. Accessed: 04 April 2024

Targeting and eligiblity

Targeting methods
Categorical Targeting
Geographical Targeting
References
Arruda, P.; Markhof, Y.; Franciscon, I.; Silva, W. and Bilo, C. 2020. Overview of non-contributory social protection programmes in South Asia from a child and equity perspective. Research Report No. 46. International Policy Centre for Inclusive Growth and UNICEF Regional Office for South Asia. . Accessed 16th Oct 2023.Accessible: https://socialprotection.org/sites/default/files/publications_files/RR46_Overview_of_non_contributory_social_protection_programmes.pdf
Targeted areas
Nationwide
References
Radio Nepal, 2024. Old age allowance from 68 years – Radio Nepal (onlineradionepal.gov.np) , Accessed 11 January 2024. Accessible: https://onlineradionepal.gov.np/en/2022/05/29/288086.html
Target groups
Elderly
References
Arruda, P.; Markhof, Y.; Franciscon, I.; Silva, W. and Bilo, C. 2020. Overview of non-contributory social protection programmes in South Asia from a child and equity perspective. Research Report No. 46. International Policy Centre for Inclusive Growth and UNICEF Regional Office for South Asia. . Accessed 16th Oct 2023.Accessible: https://socialprotection.org/sites/default/files/publications_files/RR46_Overview_of_non_contributory_social_protection_programmes.pdf
Eligibility criteria
Elderly aged 68 years old and above. For Dalit communities and Karnali region, elderly aged 60 years and above.
References
Khanal, R. (2022). Minimum eligible age for elderly allowance reduced to 68 from 70 years. My República. Accessible https://myrepublica.nagariknetwork.com/news/govt-reduces-minimum-age-limit-for-elderly-allowance-to-68-from-70-years/ Accessed 26 March 2024

Coverage and other information

Type of benefits
Cash
References
Arruda, P.; Markhof, Y.; Franciscon, I.; Silva, W. and Bilo, C. 2020. Overview of non-contributory social protection programmes in South Asia from a child and equity perspective. Research Report No. 46. International Policy Centre for Inclusive Growth and UNICEF Regional Office for South Asia. . Accessed 16th Oct 2023.Accessible: https://socialprotection.org/sites/default/files/publications_files/RR46_Overview_of_non_contributory_social_protection_programmes.pdf
Amount of benefits
Rs 4000 per month
References
Khanal, R. (2022). Minimum eligible age for elderly allowance reduced to 68 from 70 years. My República. Accessible https://myrepublica.nagariknetwork.com/news/govt-reduces-minimum-age-limit-for-elderly-allowance-to-68-from-70-years/ Accessed 26 March 2024
Payment/delivery frequency
Every four months
References
World Bank 2016. “Project Appraisal Document On A Proposed Credit In The Amount of SDR107.6 Million (US$150 Million Equivalent) To Nepal For A Strengthening Systems For Social Protection And Civil Registration Project”. Washington, D.C.: World Bank. <https://documents1.worldbank.org/curated/en/609981480906831854/pdf/1480906826924-000A10458-P154548-PAD-for-Board-Nov-8-2016-ym-11112016.pdf>. Accessed 16 May 2018.
Benefit delivery mechanism
VDCs and municipalities distribute the money. The government plans to expand postal saving banks to all local levels and to use them as the delivery mechanism for the country's social security allowances. If beneficiaries cannot collect the money themselves, the benefits may be delivered to their home
References
(i)World Bank 2016. “Project Appraisal Document On A Proposed Credit In The Amount of SDR107.6 Million (US$150 Million Equivalent) To Nepal For A Strengthening Systems For Social Protection And Civil Registration Project”. Washington, D.C.: World Bank. <https://documents1.worldbank.org/curated/en/609981480906831854/pdf/1480906826924-000A10458-P154548-PAD-for-Board-Nov-8-2016-ym-11112016.pdf>. Accessed 16th Oct 2023. (ii)MoF 2017. “Budget Speech of Fiscal Year 2017/18”. Government of Nepal Ministry of Finance. <https://bit.ly/2PCIjFb>. 16th Oct 2023. (iii) ADB. 2012. Social Protection for Older Persons: Social Pensions in Asia. Edited by Sri Wening Handayani and Babken Babajanian. Mandaluyong City: Asian Development Bank. <https://bit.ly/2OAqTwu>. Accessed 16th Oct 2023.
Benefit recipients
If beneficiaries cannot collect the money themselves, the benefits may be delivered to their home.
References
ADB. 2012. Social Protection for Older Persons: Social Pensions in Asia. Edited by Sri Wening Handayani and Babken Babajanian. Mandaluyong City: Asian Development Bank. <https://www.adb.org/publications/social-protection-older-persons-social-pensions-asia>. Accessed 16 May 2018.
Monitoring and evaluation mechanisms and frequency
The DDC shall supervise and monitor the allowance distribution procedure in coordination with the District Social Security Coordination Committee. The Ministry of Local Development, Ministry of Women, Children and Social Welfare and the Ministry of Finance, DDC, VDC and Municipal authority can regularly or intermittently monitor the program. The DDC must send a report after discussing such monitoring reports to the Ministry of Finance within one month after the completion of the report of the fiscal year. DDC, in coordination with other sectoral offices of the district and managing fund will adopt an Integrated Monitoring System.
References
Government of Nepal National Planning Commission, 2012, Assessment of Social Security Allowance Program in Nepal, Accessed 17th Oct 2023. Accessible: https://www.npc.gov.np/images/category/Assessment-of-Social-Security-Allowance-Program-in-Nepal.pdf
Legal Framework
Social Welfare Act, 2049 (1992)
References
Government of Nepal. 2017. “Social Welfare Act, 2049 (1992)”. Government of Nepal. <http://www.swc.org.np/wp-content/uploads/2015/06/SWC-Act.pdf>
MIS
The Department of Civil Registration (DoCR) under the Ministry of Federal Affairs and General Administration maintains the Vital Events Registration and Social Protection Management Information System (VERSPMIS).
References
Bikas Udhyami. 2018. “A Study into Development Data in Nepal”. Bikas Udhyami. <https://www.nepalindata.com/media/resources/items/19/bA_Study_Into_Development_Data_in_Nepal.pdf> Accessed 25 March 2024.

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