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Every month, nearly a third of a covered employee's basic salary flows into a single government fund — and most employees have only a vague idea of what it buys them. That fund is the Social Security Fund.
The Social Security Fund (SSF) is Nepal's contribution-based social protection system: employers and employees pay a fixed share of basic salary each month, and in return workers gain medical, accident, dependent, and old-age pension protection.
This guide explains the Social Security Fund in Nepal in 2026 — the 31% contribution and how it splits, where the money goes, who must enrol, the schemes it funds, and what employers must do.
The Social Security Fund (SSF) in Nepal is a government-managed, contribution-based social protection system under the Contribution-Based Social Security Act 2074. The total contribution is 31% of an employee's basic salary — 11% from the employee and 20% from the employer — deposited monthly. It funds medical, maternity, accident, disability, dependent-family, and old-age pension protection, and is mandatory for private-sector employers, public enterprises, NGOs, and INGOs.
Notary Kathmandu provides document notarization, certified true copies, and multilingual translation for individuals and businesses across Nepal.
SSF registration and contributions are handled with the Fund itself — but if your business needs employment documents notarised or translated, our notary services in Kathmandu can help. Talk to our team in Kathmandu →
What Is the Social Security Fund in Nepal?
The Social Security Fund is a national scheme that pools regular contributions from employers and employees to provide defined benefits when a worker needs them — illness, an accident, the loss of a breadwinner, or retirement. Instead of each employer running its own provisions, contributions go into one government-managed fund.
It is established under the Contribution-Based Social Security Act 2074 (2017) and administered by the Social Security Fund. The principle is simple: you contribute while you earn, and you draw protection when life events occur.
Key takeaway: The SSF is a government-managed fund under the Contribution-Based Social Security Act 2074 that turns monthly contributions into medical, accident, family, and pension protection.
How Much Is the SSF Contribution?
The headline figure is 31% of basic salary, contributed every month. It is split between the two parties — but note that the larger share comes from the employer.
| Contributor | Share of Basic Salary |
|---|---|
| Employee | 11% |
| Employer | 20% |
| Total | 31% |
The employee's 11% is deducted from salary; the employer adds 20% on top and deposits the combined 31% into the Fund. The calculation is on basic salary, not gross pay, which is a common point of confusion.
Key takeaway: The SSF contribution is 31% of basic salary each month — 11% deducted from the employee and 20% added by the employer.
Where Does the Contribution Go?
The 31% is not a single pot — it is allocated across defined protection schemes, with the great majority going to retirement.
| Scheme | Share of Basic Salary |
|---|---|
| Medical, health and maternity protection | 1% |
| Accident and disability protection | 1.40% |
| Dependent family protection | 0.27% |
| Old-age protection (pension and retirement) | 28.33% |
The lion's share — over 28% — goes to old-age protection, making the SSF primarily a retirement-and-pension vehicle, with the other schemes providing protection along the way.
Key takeaway: Most of the 31% — about 28.33% — funds old-age pension, with smaller shares for medical, accident, and dependent-family protection.
Who Must Enrol in the SSF?
SSF participation is mandatory across a wide span of employers. It covers private-sector employers and their employees, public enterprises, NGOs, and INGOs. For these organisations, enrolling staff and contributing is a legal obligation, not an option.
For the employee, this means a portion of pay is committed to the Fund — but it also means access to protections that an individual would struggle to arrange alone.
Key takeaway: SSF is mandatory for private employers, public enterprises, NGOs, and INGOs and their employees — enrolment and contribution are legal obligations.
Employer Obligations Each Month
The compliance routine is monthly and time-bound. Each month the employer must:
- Calculate 31% of each employee's basic salary
- Deduct the employee's 11% share from their pay
- Add the employer's 20% share
- Deposit the combined amount — typically on or before the 15th of each Nepali month
- Upload the bank voucher or transaction confirmation to the SSF portal
Late or missed contributions create compliance problems for the employer, so payroll teams build this into the monthly cycle. Employment contracts and payroll records that underpin this can be drafted and notarised where a business needs formal documentation.
Key takeaway: Employers must calculate, deduct, add their share, deposit by around the 15th of each Nepali month, and upload proof to the SSF portal — on time, every month.
Conclusion: A Forced Saving That Buys Protection
The Social Security Fund can feel like a deduction, but it is better understood as enforced protection: a monthly 31% of basic salary that converts into medical cover, accident and disability protection, support for dependents, and — above all — a retirement pension. For employees it is a safety net; for employers it is a clear monthly compliance duty.
Notary Kathmandu does not handle SSF registration or contributions — those are managed directly with the Fund. Where a business needs employment contracts, declarations, or corporate documents notarised or translated, that document layer is where we help.
For your business's document needs, see our drafting and notarisation services or talk to our team in Kathmandu. Get your documents notarized in Kathmandu →
Reviewed by: The Legal Team at Notary Kathmandu — Nepal Bar Council registered advocates
Last reviewed: April 2026
This article is for informational purposes only and does not constitute legal advice, advertisement, or solicitation. Notary Kathmandu and its team are not liable for any consequences arising from reliance on this information. For legal advice, please contact us directly.
Frequently Asked Questions
The Social Security Fund (SSF) is Nepal's government-managed, contribution-based social protection system under the Contribution-Based Social Security Act 2074.
The total SSF contribution is 31% of basic salary each month — 11% from the employee and 20% from the employer.
Yes. SSF is mandatory for private-sector employers, public enterprises, NGOs, and INGOs, and their employees.
The employee contributes 11% of basic salary, which is deducted from their pay, and the employer contributes 20% on top. The combined 31% is deposited into the Fund each month by the employer, who handles the calculation and payment.
SSF is calculated on basic salary, not gross pay. This is a common point of confusion — allowances and other components outside basic salary are not part of the 31% base unless treated as basic under the applicable rules.
The SSF funds medical, health and maternity protection, accident and disability protection, dependent-family protection, and old-age protection (pension and retirement). The largest share of the contribution goes to old-age protection, making it primarily a pension vehicle.
Of the 31% of basic salary, about 1% goes to medical, health and maternity protection, 1.40% to accident and disability protection, 0.27% to dependent-family protection, and around 28.33% to old-age pension and retirement protection.
The Social Security Fund is established under the Contribution-Based Social Security Act 2074 (2017). The Fund administers the scheme, sets the contribution structure, and pays out benefits under the schemes the Act defines.
Employers typically deposit the combined contribution on or before the 15th of each Nepali month and upload the bank voucher or transaction confirmation to the SSF portal. Timely monthly deposit is part of the employer's compliance obligation.
Failing to enrol staff or deposit contributions creates compliance problems for the employer, since SSF participation is a legal obligation for covered organisations. Employers build the monthly contribution into payroll to avoid late or missed payments.
The employer pays more. The employee contributes 11% of basic salary while the employer contributes 20%, so the employer's share is nearly double the employee's. Together they make up the total 31% deposited each month.
They are related but not identical. The SSF is the contribution-based social security scheme under the 2074 Act covering several protections including pension. Provident fund arrangements are a separate retirement-savings mechanism, and how they interact depends on the employer's setup and current rules.
The Social Security Fund is a government-managed body that administers the contribution-based scheme. Employers register and contribute through the Fund's system, and the Fund pays out benefits to enrolled workers under the medical, accident, dependent, and old-age schemes.
Yes. A portion of the contribution funds medical, health and maternity protection, alongside accident and disability cover and dependent-family protection. The bulk of the contribution, however, is directed to old-age pension and retirement.
No. SSF registration and contributions are handled directly with the Social Security Fund. Notary Kathmandu helps only with the document layer — notarising or translating employment contracts, declarations, and corporate documents a business may need.
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