Table of Contents
Information to SSF Nepal
What is the Social Security Fund (SSF) in Nepal?
The Social Security Fund (SSF) is a mandatory contributory social security system in Nepal that provides financial protection to workers and their families. The primary purpose of SSF is to provide lifelong protection through benefits that include pension schemes, healthcare coverage, maternity benefits, and financial support for dependent family members.
Who is required to register with SSF?
With the government making SSF enrolment compulsory from FY 2082/83, all employers must register and contribute for their employees. The SSF is a mandatory system, meaning all employees, employers, and self-employed individuals must participate in the system.
When did SSF become mandatory?
SSF enrollment became compulsory from FY 2082/83 (2025/26). Starting from the upcoming fiscal year 2082/83 (2025/26), newly appointed government employees will be enrolled in a contribution-based social security system instead of receiving traditional pension and gratuity benefits.
Contribution and Registration
What are the contribution rates for SSF?
Employers should contribute 20 per cent and contributors 11 percent and a total of 31 percent monthly and regularly. This means:
- Employer contribution: 20% of employee’s monthly salary
- Employee contribution: 11% of monthly salary
- Total contribution: 31% of monthly salary
How is the contribution calculated?
The contribution is calculated based on the employee’s monthly basic salary. Both employer and employee contributions are deposited into the SSF account monthly.
What happens if an employer fails to deposit contributions?
SSF can recover the contribution from the employer for failure of deposition with 10% interest within the 15 days from end of each month. In case the employer has misappropriated the amount to be deposited in SSF (for example deducting from the monthly salary but failing to deposit with SSF), legal action can be taken against the employer.
When should contributions be deposited?
Contributions must be deposited within 15 days from the end of each month. Failure to deposit within this timeframe attracts a 10% interest penalty.
Benefits and Coverage
What benefits does SSF provide?
Workers who retire receive a regular income (pension) from the SSF. This helps them live with financial stability even after they stop working. Healthcare for workers and their families – The SSF helps cover medical expenses for workers and their dependents. The main benefits include:
- Pension Benefits: Monthly pension after retirement
- Healthcare Coverage: Medical insurance for workers and families
- Maternity Benefits: Support for female workers
- Disability Benefits: Financial support for disabled workers
- Accident Coverage: Protection against workplace accidents
- Dependent Family Benefits: Support for family members
How is the pension amount calculated?
Upon completion of the retirement age, the total sum amount of contribution made by the employer and the employee and the amount of accrued from the investment made by the Fund will be divided by 180 months (15 years) and such amount will be provided as pension every month. The monthly pension amount is the resultant amount after dividing the sum of total amount deposited in the pension fund and the returns on it by 160.
Formula: Pension Amount = (Total Contributions + Investment Returns) ÷ 160
What are the eligibility criteria for pension?
To be eligible for a pension from the SSF, an individual must consistently contribute for a minimum of 15 years or shall contribute till the age of 60 years.
What happens in case of permanent disability?
In case of permanent disability, the employee will be provided with life-time pension at the rate of 60 percent of the last drawn basic remuneration of the employee.
What benefits are available to dependents after a contributor’s death?
In case of the death of any contributor, the pension is provided to his/her spouse and gets 60% of the basic salary lifetime. The spouse will receive a lifetime monthly allowance equivalent to 60% of the contributor’s last basic salary while the deceased worker’s children will receive 40% of the basic salary (for up to 2 children on pro rata basis) as educational support until the age of 18.
Healthcare and Medical Benefits
Does SSF provide healthcare coverage?
Yes, SSF provides comprehensive healthcare coverage for registered workers and their dependents. This includes coverage for medical expenses, hospitalization, and treatment costs.
Who is covered under SSF healthcare?
Healthcare coverage extends to:
- The registered worker
- Spouse
- Dependent children
- Other eligible family members as defined by SSF rules
What is the medical insurance coverage limit?
The SSF provides medical insurance coverage with specific limits that are periodically reviewed and updated by the Social Security Fund Board.
Withdrawal and Claims
Can I withdraw my SSF contributions before retirement?
Generally, SSF contributions cannot be withdrawn before retirement age except in specific circumstances such as:
- Permanent disability
- Emigration
- Termination of employment under certain conditions
- Death of the contributor
What documents are required for SSF claims?
Required documents typically include:
- SSF registration certificate
- Employment termination letter (if applicable)
- Medical certificates (for disability claims)
- Death certificate (for dependent claims)
- Bank account details
- Citizenship certificate
- Other supporting documents as required
How long does it take to process SSF claims?
The processing time for SSF claims varies depending on the type of claim and completeness of documentation. Generally, it takes 15-30 days for routine claims processing.
Compliance and Legal Requirements
What are the penalties for non-compliance?
Employers who fail to register or contribute to SSF may face:
- 10% interest on overdue contributions
- Legal action
- Fines and penalties
- Restriction on business operations
Are there any tax benefits for SSF contributions?
Yes, SSF contributions are generally tax-deductible for both employers and employees, providing significant tax benefits while securing future financial security.
How does SSF integrate with other social security schemes?
Could have double insurance in case of an accident. SSF can work alongside other insurance schemes, and beneficiaries may receive benefits from multiple sources in certain situations.
Registration Process
How do I register for SSF?
The registration process involves:
- Employer Registration: Employers must first register their organization with SSF
- Employee Enrollment: Individual employees are then enrolled under their employer’s SSF account
- Documentation: Submit required documents including business registration, employee details, and bank information
- Contribution Setup: Establish monthly contribution payment mechanisms
What documents are needed for SSF registration?
- Business registration certificate
- PAN certificate
- Employee details and contracts
- Bank account information
- Citizenship certificates
- Other relevant business documents
Can self-employed individuals register for SSF?
Yes, self-employed individuals can register for SSF as individual contributors and enjoy the same benefits as employed workers.
Recent Updates and Changes
What changes have been made to SSF in 2025?
The government making SSF enrolment compulsory from FY 2082/83, all employers must register and contribute for their employees. Starting from the upcoming fiscal year 2082/83 (2025/26), newly appointed government employees will be enrolled in a contribution-based social security system instead of receiving traditional pension and gratuity benefits.
How does the new system differ from the old pension system?
The new contribution-based system replaces the traditional pension scheme with a more sustainable model where benefits are directly linked to contributions made during the working period.
Are there any pension adjustments?
As per 24 (b) of the Security Planning Procedure, the pension amount is increased with the increment of insurance assessment every 3 years. This ensures that pension amounts are adjusted to keep pace with inflation and changing economic conditions.
Contact and Support
Where can I get help with SSF-related queries?
For SSF-related assistance, you can:
- Visit the official SSF website: https://ssf.gov.np/
- Contact SSF offices in your district
- Consult with legal professionals specializing in social security law
- Reach out to HR departments for workplace-related SSF queries
What should I do if I face issues with SSF contributions or benefits?
If you encounter problems with SSF:
- Document the issue clearly
- Contact your employer’s HR department first
- Reach out to the nearest SSF office
- File a formal complaint if necessary
- Seek legal advice for complex disputes
This comprehensive FAQ covers the essential aspects of Nepal’s Social Security Fund system. For the most current information and specific cases, it’s recommended to consult the official SSF website or contact SSF offices directly.
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