(1) A welfare fund will be established for the welfare of Nepali army servicemen and ex-servicemen and their families.
(2) The following amounts will be included in the fund under sub-section (1):-
(a) The amount deducted by the specified percentage from the amount received for serving the Nepalese army in any part of the world at the invitation of the United Nations for peace-keeping operations,
(b) The amount saved by carrying out welfare work from the interest earned on the amount deposited in various banks and financial institutions,
(c) The amount earned by investing in welfare activities as specified (d) Amounts deposited in various banks and financial institutions as principal and interest received therefrom from the month of Ashadha of the year 2032 till the commencement of this Act,
(e) Movable immovable property in the name of the organization designated by the Nepali Military Base for welfare work and the amount increased therefrom,
(f) The movable and immovable property currently being used by the Nepali Army for welfare work and the amount increased therefrom.
(3) To operate the welfare fund as per sub-section (1), there will be a military welfare fund operation and management committee consisting of seven members as follows:-
(a) Commander-in-Chief – Chairman
(b) Two members nominated by the Guardian from among ex- and present-day military officers (c) Two members nominated by the Commander-in-Chief from among serving and ex-servicemen (d) Representative Ministry of Finance (R.P. First Grade Officer) – Member
(e) Representative Ministry of Defense (R.P. First Grade Officer) – Member
(4) There will be a welfare planning directorate at the Nepali military base to assist in the day-to-day operations of the committee. Its work, duties and rights will be as determined by the committee.
(5) According to sub-section (2), the amount accumulated in the welfare fund shall be spent as prescribed for the welfare of the current and former members of the Nepali Army and their families. Explanation: For the purpose of this section, "family" means the husband or wife, son, daughter and mother-in-law of a former and current member of the Nepali Army, and in the case of female employees, their mother-in-law, father-in-law.