SSF Nepal Explained: Contribution Rates, Registration (2026)

Q: I have 8 employees. Do I have to enroll in SSF?

No — SSF is mandatory at 10+ employees. Below 10 it is voluntary. Most early-stage Kathmandu startups stay on the legacy regime (private PF arrangement + gratuity provisioning + private medical insurance) until they cross 10 employees. Some choose to enroll voluntarily earlier as a hiring signal — 'we run real benefits.'

Q: Can foreign employees in Nepal contribute to SSF?

Foreign nationals working in Nepal on a valid labour permit are generally covered. The contribution mechanics are identical. Some workers prefer to opt out where possible because lump-sum withdrawal at exit (without 15 years of contribution) is restricted to the employee's pension-fund portion.

Q: What is 'basic salary' for SSF purposes?

The 'basic' line item on the payslip — not gross, not CTC. Labour Rules require basic to be at least 60% of gross wages. Allowances (transport, food, communication, dearness allowance, festival allowance) are excluded from the SSF base.

Q: Is the Dashain festival bonus subject to SSF?

If your payroll structure pays Dashain as a separate festival allowance (one month's basic, paid annually before Dashain), it is generally excluded from monthly SSF. If you fold it into the monthly basic salary structure, it is included. Practice varies; document your treatment.

Q: How do I terminate an employee from SSF?

Mark the exit date on the SSF portal, pay the final pro-rata contribution, and provide the employee with their SSF statement of contributions. Pension entitlements vest with the employee in SSF; they continue accruing if the employee joins another SSF-enrolled employer.

Q: Is SSF the same as Karmachari Sanchaya Kosh (EPF)?

No. EPF (Employees Provident Fund / Sanchaya Kosh) is the legacy provident-fund institution that still manages historical PF balances and ongoing PF contributions for employees not enrolled in SSF (typically civil-service and certain pre-SSF private-sector cases). SSF is the newer, broader contributory scheme that supersedes EPF for newly-enrolled private-sector employees.

Q: Can EOR providers handle SSF for me?

Yes — that's a core part of the EOR proposition for foreign companies hiring in Nepal. The EOR's Nepali entity is the employer of record; it enrolls the worker in SSF under its employer number, files monthly, and bundles the cost into your invoice.

60-Second Summary

The Social Security Fund (SSF) is Nepal's contributory social-security scheme, established under the Contribution Based Social Security Act 2074 (2017) and operationalized from late 2019. Governed by the Ministry of Labour, Employment and Social Security.
Contribution rate: 11% of basic salary from the employee (10% pension + 1% social-security tax) plus 20% from the employer (10% pension + 8.33% gratuity + 1.67% additional) — total 31% of basic monthly.
Mandatory for every employer with 10+ employees; voluntary for smaller employers and for self-employed individuals (separate scheme).
Four benefit pillars: (1) Medical, health & maternity protection, (2) Accident & disability safety, (3) Dependent family protection, (4) Old-age pension. For SSF-enrolled employees, SSF replaces the legacy separate gratuity, provident fund, and accident-insurance obligations.
Contributions are due by the 15th of the following month. Late deposit accrues interest at 10% p.a. and triggers enforcement.

If you employ people in Nepal — as a Nepali founder, an HR generalist, or a foreign company on EOR — the Social Security Fund (SSF) is the single most consequential statutory obligation after paying salary itself. This is the plain-English guide: what it is, what it costs, what it covers, and how to operate it correctly.

What SSF is

The Social Security Fund (Nepali: सामाजिक सुरक्षा कोष, abbreviated SSF) is Nepal's unified contributory social-security scheme. It was established under the Contribution Based Social Security Act 2074 (2017) and the Social Security Regulations 2075 (2018), and became operational for private-sector enrolment from late 2019.

SSF is governed by a 13-member tripartite board chaired by the Secretary of the Ministry of Labour, Employment and Social Security (MoLESS), with representation from government, employers, and trade unions. As of recent SSF figures, the Fund covers ~18,500+ registered employers and ~1 million+ contributing employees nationwide.

Contribution rates

Rates verified against ssf.gov.np (2026). Contributions are computed on basic salary only — not gross salary, not allowances. Labour Rules require basic to be at least 60% of gross.

Contributor	Heading	% of basic salary
Employee	Pension Fund	10%
Employee	Social Security Tax	1%
Employee — TOTAL		11%
Employer	Pension Fund	10%
Employer	Gratuity	8.33%
Employer	Additional contribution	1.67%
Employer — TOTAL		20%
GRAND TOTAL monthly to SSF		31% of basic

Worked example

Engineer on NPR 200,000 gross/month with 60% basic (NPR 120,000) + 40% allowances. Monthly SSF: employee 11% × NPR 120K = NPR 13,200 (deducted from net pay) + employer 20% × NPR 120K = NPR 24,000 (employer cost on top of gross). Total NPR 37,200/month to SSF for this employee.

Who must enroll

Employer profile	SSF enrollment status
10+ employees, formal sector	Mandatory
<10 employees, formal sector	Voluntary (often deferred to legacy PF + gratuity regime)
Foreign-owned company in Nepal with any employees	Same threshold — mandatory at 10+
EOR provider operating in Nepal	EOR's Nepali entity enrolls the workers it employs
Self-employed / informal sector	Separate voluntary scheme
Genuine independent contractor on a service agreement	Not covered (contractor handles own retirement provisions)

Don't game the 10-employee threshold

Splitting a 12-person company into two 6-person 'related' entities to avoid SSF enrolment doesn't survive a Labour Office or SSF audit. The substance-over-form test applies. Penalty: back-contributions for the full period plus interest.

Registration steps

Enrolling an employer in SSF

1
1. Employer registration
Apply on the SSF portal (ssf.gov.np) with the company's PAN, certificate of incorporation, business address, and authorized signatory details. Issued an employer registration number.
2
2. Employee enrollment
Each employee is enrolled individually with national ID/Citizenship details, date of birth, designation, basic salary, and joining date. Issued an SSF contributor ID.
3
3. Bank linkage
Designate a corporate bank account for monthly SSF debits. Most commercial banks in Nepal are integrated with SSF's collection system.
4
4. First contribution
Calculate the first month's 31% (or pro-rata for partial month), file the monthly contribution statement on the SSF portal, and remit by the 15th of the following month.

Monthly contribution & filing

By the 15th of each month: file the previous month's contribution statement on the SSF portal (employee list × basic × 31%).
Pay the calculated amount via designated bank to SSF's collection account; obtain the deposit voucher.
Provide each employee with a payslip showing the 11% deduction and (best practice) the 20% employer share for transparency.
Reconcile annually; file annual return alongside the Labour Office filing.
On joining / exit: enroll new employees within 30 days; mark exits with last working day and pay final contribution pro-rata.

Late payment is expensive

Late SSF contributions accrue interest at 10% per annum from the due date. Sustained non-payment triggers SSF enforcement notices, Labour Office inspection, and reputational damage that surfaces during termination disputes (Labour Court will examine SSF compliance as evidence of good faith).

The four benefit schemes

What contributors receive

1
1. Medicine, health & maternity protection
Reimbursement of medical expenses (subject to schedules), full-pay maternity for 98 days, and partial paternity coverage. Eligibility kicks in after a minimum contribution period (typically 3 months for maternity, longer for some medical claims).
2
2. Accident & disability safety
Coverage for workplace and non-workplace accidents resulting in temporary or permanent disability. Includes treatment cost reimbursement and disability pension.
3
3. Dependent family protection
On the death of a contributor, dependent family members (spouse, minor children, dependent parents) receive a survivor pension calculated on the contributor's average pensionable salary and years of contribution.
4
4. Old-age pension
Lifetime monthly pension from age 60 (with at least 180 months / 15 years of contribution). Pension is calculated on average pensionable basic over the contribution period. Below 15 years, contributor receives lump-sum withdrawal of accumulated pension contributions plus interest.

SSF vs legacy gratuity & PF

Before SSF, Nepalese employees were entitled to separate provident-fund contributions (typically 10% employer + 10% employee held with the Employees Provident Fund — Karmachari Sanchaya Kosh) and a gratuity calculated as 8.33% of basic per year of service, payable on exit. Some employers also carried separate group accident insurance.

For SSF-enrolled employees, the 20% employer SSF contribution explicitly absorbs the 8.33% gratuity and substitutes for the legacy PF, and the four benefit schemes substitute for separate insurance arrangements. The employee no longer has a separate PF balance growing in EPF — the equivalent is the pension and dependent benefits inside SSF.

Item	Legacy regime (pre-SSF / <10 employees)	SSF regime
Provident Fund	10% employer + 10% employee → EPF (Sanchaya Kosh)	Absorbed into SSF 31% structure
Gratuity	8.33% × years of service, paid on exit	Absorbed into employer's 20% SSF share
Medical insurance	Private group policy (employer's choice)	SSF medical scheme (subject to schedule)
Accident insurance	Private group accident policy	SSF accident & disability scheme
Old-age provision	EPF lump-sum at exit + (optional) annuity	SSF lifetime pension at 60 (with 15+ years contribution)

Common mistakes

Mistake	Consequence	Fix
Calculating SSF on gross instead of basic	Over-deduction; employee grievance	Always 31% of basic only (Labour Rules require basic ≥60% of gross)
Running parallel PF and SSF for the same employee	Double-deduction; refund/reconciliation headache	Pick one regime per employee; SSF supersedes legacy PF for SSF-enrolled employees
Late monthly deposit	10% p.a. interest + enforcement notice	Calendar reminders for the 15th; bank standing instruction
Not enrolling new joiners within 30 days	Coverage gap; back-payment liability	Run SSF enrollment as part of Day-1 onboarding checklist
Treating 'consultants' as SSF-exempt to save 20%	Reclassification + back-contributions + 100% penalty	Use proper contractor agreements only for genuine project work; SSF-enroll everyone else
Not paying SSF on the Dashain bonus	If Dashain bonus is part of basic structure: under-contribution. If it's a separate festival allowance: no SSF.	Confirm pay-component classification with auditor; document treatment

FAQ

Frequently asked questions

I have 8 employees. Do I have to enroll in SSF?

No — SSF is mandatory at 10+ employees. Below 10 it is voluntary. Most early-stage Kathmandu startups stay on the legacy regime (private PF arrangement + gratuity provisioning + private medical insurance) until they cross 10 employees. Some choose to enroll voluntarily earlier as a hiring signal — 'we run real benefits.'

Can foreign employees in Nepal contribute to SSF?

Foreign nationals working in Nepal on a valid labour permit are generally covered. The contribution mechanics are identical. Some workers prefer to opt out where possible because lump-sum withdrawal at exit (without 15 years of contribution) is restricted to the employee's pension-fund portion.

What is 'basic salary' for SSF purposes?

The 'basic' line item on the payslip — not gross, not CTC. Labour Rules require basic to be at least 60% of gross wages. Allowances (transport, food, communication, dearness allowance, festival allowance) are excluded from the SSF base.

Is the Dashain festival bonus subject to SSF?

If your payroll structure pays Dashain as a separate festival allowance (one month's basic, paid annually before Dashain), it is generally excluded from monthly SSF. If you fold it into the monthly basic salary structure, it is included. Practice varies; document your treatment.

How do I terminate an employee from SSF?