Quick Answer (TL;DR)

SSF = 11% (you) + 20% (employer) = 31% of basic salary. The scheme-wise allocation (commonly quoted as ~20% provident fund, ~8.33% gratuity, remainder medical/accident/dependent protection) follows the SSF Contribution & Schemes Directive — the exact split moves by directive amendment, so confirm the current directive text on ssf.gov.np before payroll (figures here are the commonly cited working split as of October 2026). Enrolled via employer on ssf.gov.np, paid monthly. SST 1% treatment + SSF loans (housing, education) per current SSF notice — confirm eligibility/tenure on ssf.gov.np.

31% Breakdown — Where Your Money Goes

Employee 11% of basiccommonly described as ~10% provident fund + ~1% social-security pool — confirm the current directive split on ssf.gov.np
Employer 20% of basiccommonly described as ~10% provident fund + ~8.33% gratuity + remainder medical/accident/dependent schemes — confirm the current directive split on ssf.gov.np
Total 31% example (Rs 40,000 basic)Rs 4,400 + Rs 8,000 = Rs 12,400/month → Rs 148,800/year
BaseBasic salary only (not allowances) — check appointment letter split; inflating allowances to cut basic is non-compliant
Monthly SSF = Basic × 31% Employee in-hand cut = Basic × 11% Employer extra cost = Basic × 20%

Try SolutionsNepal’s SSF Calculator or Salary Checker (shows SSF + TDS + net in one view).

4 Schemes & What You Get

  • Medical, health & maternity: OPD/inpatient + maternity per SSF limits at listed hospitals
  • Accident & disability: treatment + disability pension/compensation per degree
  • Dependent family protection: pension to spouse/children on contributor death
  • Old-age protection: pension or lump-sum (PF + gratuity + interest) at retirement — choice per directive

Enrollment & Payment — Step by Step

  1. Employer registers company on ssf.gov.np → employer portal with PAN + company docs
  2. Adds employees (citizenship + appointment + basic salary + bank) → SSF ID generated
  3. Monthly deposit by employer before deadline via IPS / connectIPS / bank — both shares together
  4. Employee checks passbook on ssf.gov.np → contributor login; keeps contribution history for loans/claims
  5. Leaving job? Transfer to new employer — do not double-register; claim per SSF exit/retirement rule

Common Mistakes & Loans

Mistake #1Contributing on gross instead of basic (or vice versa) — SSF base is basic salary per Act
Mistake #2Employer deducts 11% but never deposits 20% — check passbook monthly
SSF loansHome, hire-purchase & education loans up to contribution-linked limits after the minimum contribution period in the current SSF loan notice — check the live eligibility/tenure/ceiling notice on ssf.gov.np before applying (generic description only; specifics change by notice)
Tax tipSSF contribution deductible for income tax within IRD limits + 1% SST exempt — keep SSF statements for tax filing

Official Sources & Final Note

Source: Social Security Fund (ssf.gov.np) — Contribution & Schemes Directives under Social Security Fund Act 2074 (scheme-wise % split per the current directive text) + SSF loan/benefit notices for eligibility specifics. Rates revise by Fund notice — verify before payroll. Working splits/loan descriptions here are as of October 2026.

Last updated: September 27, 2026. SolutionsNepal is an educational guide, not SSF/IRD.

Frequently asked questions

How much is SSF contribution?

31% of basic salary total — 11% deducted from employee + 20% added by employer. Example: Rs 40,000 basic → Rs 4,400 employee + Rs 8,000 employer = Rs 12,400/month to SSF.

Is SSF mandatory?

Yes for formal private/organized employees under the Social Security Fund Act 2074 — employer must enroll workers and deposit monthly via ssf.gov.np. Informal/self-employed can join voluntarily under specified schemes.

Do I still pay SST (Social Security Tax)?

No — 1% SST on salary is waived if you contribute to SSF. SSF contributors also get income-tax deduction benefit on contributions within limits.

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Written by SolutionsNepal Team

Nepal finance & labor researchers