SSF Enrollment in Nepal for Companies: Registration, Contribution and Process

What Is the Social Security Fund (SSF) in Nepal?

Nepal's Social Security Fund (SSF) is the government contributory scheme that collects monthly contributions from employers and employees and pays health, accident, family and old-age benefits. It operates under the Contribution Based Social Security Act 2074.

The fund, known in Nepali as the Samajik Suraksha Kosh (सामाजिक सुरक्षा कोष), gives formal-sector employees social protection that the employer and the employee pay for together. A listed employer deducts the employee's share from the basic salary, adds its own share and deposits both in the fund.

Informal-sector workers and self-employed persons join the fund voluntarily, as the Ministry of Labour, Employment and Social Security notifies in the Nepal Gazette. For a company, the SSF is a payroll duty that starts with the employer's own registration.

Is SSF Enrollment Mandatory for Companies in Nepal?

Yes, SSF enrollment is mandatory for a company in Nepal that employs workers: the employer lists itself with the fund and enrols each employee. The Contribution Based Social Security Act 2074 places this duty on the employers the Government of Nepal names by Nepal Gazette notice. The notice published on 12 November 2018 required employers to list with the fund by regional deadlines, and to enrol their employees within 3 months of listing.

The Act defines an employer as any person or institution that employs workers, so a company or any other establishment with staff falls within it. An employee whose employer does not enrol them applies to the fund directly.

The SSF online portal registers 5 categories of participant:

• Employers, which list themselves and their employees
• Migrants in foreign employment
• Workers abroad under the Employment Permit System (EPS)
• Workers in the informal sector
• Persons in self-employment

A company uses the employer category, which is the route to SSF for employers in Nepal. The employer then enrols every employee on its payroll through the same portal.

What Is the SSF Contribution Rate?

The SSF contribution rate is 31% of basic salary: 11% deducted from the employee and 20% added by the employer. The Social Security Scheme Operating Procedure 2075 of the SSF sets this split, and the employer deposits both shares in the fund each month.

Under the Contribution Based Social Security Act 2074, the labour ministry fixes the rate by a notice in the Nepal Gazette. The table shows how each party in Nepal contributes to the 31 percent contribution rate.

The fund divides the 31% among 4 schemes: 28.33% to old-age protection, 1% to the medical scheme, 1.40% to the accident scheme and 0.27% to dependent family protection. The old-age share equals the Labour Act 2074 provident fund and gratuity: 10% of basic salary from each side plus 8.33% for gratuity.

The remaining 2.67 points of the 31% fund the medical, accident and dependent family schemes. Each party's share splits into pension, gratuity and social security tax. The employee's 11% is 10% provident fund plus 1% in place of the social security tax, and the employer's 20% is 10% provident fund, 8.33% gratuity and a 1.67% additional contribution. An SSF contributor therefore pays no separate 1% social security tax on employment income.

What Schemes Does the SSF Cover?

SSF benefits come through 4 schemes: medical, health and maternity; accident and disability; dependent family; and old-age protection. The Social Security Scheme Operating Procedure 2075 runs each scheme from the monthly contributions that employers deposit for their employees.

• Medical, health and maternity protection
• Accident and disability protection
• Dependent family protection
• Old-age (pension) protection

Every enrolled employee is covered by all 4 schemes through one contribution. The Contribution Based Social Security Act 2074 names 8 scheme types, including unemployment assistance, and the procedure runs these 4.

How Do You Enrol a Company in the SSF?

To enrol a company in the SSF, the employer completes 4 steps on the SSF online portal, from its own registration to the monthly contribution. The portal runs at sosys.ssf.gov.np, and the fund verifies each record before the next step opens.

1. Step 1: Register the employer account on the SSF online portal. The employer opens New Registration in the employer section, submits the request for a submission number and then fills in the company's details.
2. Step 2: Complete document verification. SSF staff verify the employer record and uploaded documents. The fund then issues a username, a password and an SSID, its identification number for the employer.
3. Step 3: Enrol the employees and generate their SSF IDs. The employer registers each employee as a contributor in the employer portal. The fund verifies each contributor and issues a username, a password and an SSID.
4. Step 4: Set up the monthly contribution and reporting. The employer logs in to the employer portal and deposits each month's contribution. Payroll data drives every monthly SSF filing, and accounting & bookkeeping services keep those salary records ready for the deposit.

The SSF process in Nepal runs through digital portal accounts, and the employer repeats Step 4 every month for as long as it has employees. Each employee logs in to the contributor portal with that username, password and SSID.

What Documents Are Required for SSF Registration?

SSF registration requires 2 sets of details: the employer's registration documents and contact data, and each employee's identity, photo and payment details. For SSF registration, Nepal's Social Security Fund takes both sets through the SSF portal.

The employer form on the SSF portal asks for 6 items:

Each employee's contributor record carries 4 items:

The employer files both sets online, and SSF staff check them before the fund issues any SSID.

What Are the SSF Deadlines and Penalties?

An employer deposits each month's SSF contribution within 25 days after the month ends, and a late deposit carries 10% interest on the contribution. The Contribution Based Social Security Act 2074 sets both rules, and the fund recovers the unpaid amount with that interest from the employer.

A company with staff works to 3 SSF deadlines:

• Registration of the employer with the fund, within the period the Act and Government notices set; the regional deadlines in the November 2018 notice have passed, so a new employer lists before it enrols staff, and enrols each employee within 3 months of the employment starting
• Contributions from the date each employee started work, under the Labour Act 2074
• Payment of each month's contribution within 25 days after that month ends

The 25-day deadline repeats every month, so a company with employees meets 12 deposit deadlines a year. Companies comply by depositing both shares within that deadline every month.

The Act names 4 offences: late or no deposit of contributions, false or incomplete details, improper benefit claims and irregularities in a scheme. An employer that deducts the employee's share and does not deposit it commits the non-deposit offence. The penalty is a fine of up to the amount involved, or up to NPR 1 lakh where that amount cannot be determined, imprisonment of up to one year, or both. An accomplice receives half that penalty.

Frequently Asked Questions