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The Social Security Fund (SSF), known in Nepali as Samajik Sanchaya Kosh, is a cornerstone of Nepal's social safety net. This government-run initiative provides formal and informal sector workers with essential protections including medical care, maternity benefits, accident coverage, old age pension, and family protection. Understanding Social Security Fund registration in Nepal is essential for all employers and employees to ensure compliance with labor laws and access valuable social security benefits. This guide covers the legal framework, registration process, contribution rates, schemes, benefits, and compliance requirements under current Nepali law.
What is the Social Security Fund
The Social Security Fund in Nepal is a government initiative established under the Contribution Based Social Security Act 2075 (2018) to provide social security benefits to workers across the country. The program ensures employees are covered by essential health, accident, disability, and retirement benefits while providing financial guarantees to employees and their families in contingency situations.
SSF registration is mandatory for all employers and employees in Nepal. The Enrollment Gazette Notice does not specify particular sectors or industries for enrollment, meaning all registered entities must participate regardless of business type or size.
Legal Framework
The Social Security Fund system in Nepal is governed by comprehensive legislation establishing the framework for contributions, benefits, and compliance.
| Legislation | Year | Purpose |
|---|---|---|
| Social Security Act | 2075 (2018) | Primary law establishing SSF system and mandatory enrollment |
| Social Security Fund Regulations | 2075 (2018) | Detailed rules for fund operation and administration |
| Social Security Scheme Operation Directive | 2075 (2018) | Operational procedures for scheme benefits and claims |
Registering Authority
The Office of Social Security Fund is the authority responsible for SSF registration, monitoring, and regulation. The Office issues certificates of social security and oversees all activities pertaining to the fund. The Office is located at Babarmahal, Kathmandu, and maintains an official portal at www.ssf.gov.np.
Who Must Register for SSF
SSF registration is mandatory for various entities and individuals, while some categories can participate voluntarily.
| Participant | Participation Type | Remarks |
|---|---|---|
| All Registered Entities | Mandatory | Regardless of sector or business type |
| Employees of Registered Entities | Mandatory | Must be enrolled within 3 months of appointment |
| Self-Employed Individuals | Voluntary | Can make own contributions |
| Informal Sector Workers | Voluntary | Can participate by self-contribution |
| Migrant Workers | Voluntary | Minimum 21.33% of minimum basic salary, maximum 3x minimum salary |
Entities Required to Register
- Private companies
- Public limited companies
- Government-owned enterprises
- NGOs and INGOs
- Cooperatives
- Educational institutions
- Healthcare facilities
- Financial institutions
- Foreign companies operating in Nepal
SSF Registration Process
The registration process involves separate steps for employers and employees, conducted through the SSF online portal.
Employer Registration
| Step | Action | Timeline |
|---|---|---|
| 1 | Visit SSF online portal (www.ssf.gov.np) | — |
| 2 | Register through SOSYS Online Registration feature | — |
| 3 | Submit required documents and company information | — |
| 4 | Receive unique SSF number, username, and password | — |
| 5 | Receive SSF registration certificate | Within 2 days |
Employee Registration
After the employer is successfully registered, employees must be enrolled within 3 months of their appointment date or when employment relationship is established. Employers upload employee information and documents through the online portal.
Required Documents
Different documents are required for employer and employee registration, all submitted online through the SSF portal.
For Employer Registration
| S.N. | Document |
|---|---|
| 1 | Company Registration Certificate |
| 2 | PAN/VAT Certificate |
| 3 | Details of Employer |
| 4 | Application to Office of Social Security Fund |
For Employee Registration
| S.N. | Document |
|---|---|
| 1 | Details of Employee |
| 2 | Citizenship / National ID Card / PAN Card / Passport |
| 3 | Passport-size photograph |
Note: Physical submission of documents is not required. Online submission through the SSF portal is sufficient. There is no government fee for SSF registration.
Contribution Rates
Both employers and employees are required to contribute a percentage of the employee's basic salary to SSF every month.
| Contributor | Rate |
|---|---|
| Employee Contribution | 11% of basic salary |
| Employer Contribution | 20% of basic salary |
| Total Monthly Contribution | 31% of basic salary |
Contribution Calculation Example
If an employee has a total salary of NPR 100,000 with 40% allocated as allowance:
| Component | Amount (NPR) |
|---|---|
| Basic Salary (60%) | 60,000 |
| Allowance (40%) | 40,000 |
| Employee Contribution (11% of 60,000) | 6,600 |
| Employer Contribution (20% of 60,000) | 12,000 |
| Total Monthly SSF Contribution | 18,600 |
Allocation of Contributions
The total 31% contribution is allocated to different protection schemes as follows:
| Scheme | Allocation |
|---|---|
| Medical Treatment, Health and Maternity Protection | 1.00% |
| Accident and Disability Protection | 1.40% |
| Dependent Family Protection | 0.27% |
| Old Age Protection (Provident Fund + Gratuity) | 28.33% |
| Total | 31.00% |
SSF Protection Schemes and Benefits
SSF provides four main protection schemes, each offering specific benefits to contributors and their families.
Scheme 1: Medical Treatment, Health and Maternity Protection
| Benefit | Entitlement | Contributor's Cost |
|---|---|---|
| Hospital Treatment | Up to NPR 100,000 per year | 20% of claim |
| Pregnancy/Maternity Expenses | Up to NPR 100,000 per year | 20% of claim |
| Outpatient Medical Care | Up to NPR 25,000 per year | 20% of claim |
| Maternity Care/Stillbirth Allowance | One month minimum salary per child (up to 2 children) | — |
Scheme 2: Accident and Disability Protection
- Full coverage for work injuries or occupational diseases
- Up to NPR 700,000 for non-work-related accidents
- Temporary disability: 60% of basic salary monthly until return to work
- Permanent disability: Lifelong monthly pension based on disability severity
Scheme 3: Dependent Family Protection
- Spouse Pension: 60% of contributor's last basic salary (lifelong)
- Children's Scholarship: 40% of last basic salary monthly (until age 18)
- Parent Benefits: 60% of basic salary (if no spouse or children)
- Funeral Expenses: NPR 25,000
Scheme 4: Old Age Protection
Contributors must contribute for minimum 15 years or until age 60 to be eligible for pension. Upon retirement, total contributions plus investment returns are divided by 180 months and paid as monthly pension for life.
Additional Benefits: Loan Facility
SSF contributors can access loans with favorable interest rates after 36 months of consistent contributions.
| Loan Type | Maximum Amount (NPR) |
|---|---|
| Housing Loan | 7,500,000 |
| Education Loan | 3,500,000 |
| Social Events Loan | 500,000 |
| Overall Maximum (with collateral) | 10,000,000 |
| Without Collateral | 80% of deposited funds |
Contribution Timeline and Deposit
According to Section 7 of the Contribution-Based Social Security Act, the obligated contribution amount must be transferred and deposited into the fund within 15 days following the conclusion of the month in which the contributable income becomes due for payment.
Penalties for Non-Compliance
Failure to comply with SSF registration and contribution requirements results in serious consequences.
| Violation | Penalty |
|---|---|
| Late deposit of contributions | Recovery with 10% interest charge |
| Deducting but not depositing employee contributions | Fine equal to misappropriated amount (or NPR 100,000 minimum) and/or imprisonment up to 1 year |
| Failure to register | Fines, legal action, reputation damage |
Important: Employees cannot opt out of SSF. Registration is compulsory for all employees in Nepal, and employers cannot exempt employees from enrollment.
Need Legal Assistance?
Our legal team provides comprehensive SSF registration and compliance services for employers throughout Nepal. Contact us for professional consultation.
Frequently Asked Questions
The Social Security Fund (Samajik Sanchaya Kosh) is a government-run initiative established under the Contribution Based Social Security Act 2075 (2018). It provides:
- Medical care and health benefits
- Maternity protection
- Accident and disability coverage
- Old age pension
- Dependent family protection
| Law | Year | Purpose |
|---|---|---|
| Social Security Act | 2075 (2018) | Primary legislation |
| Social Security Fund Regulations | 2075 (2018) | Operational rules |
| Social Security Scheme Operation Directive | 2075 (2018) | Scheme procedures |
| Participant | Type |
|---|---|
| All registered entities/companies | Mandatory |
| Employees of registered entities | Mandatory |
| Self-employed individuals | Voluntary |
| Informal sector workers | Voluntary |
| Migrant workers | Voluntary |
| Step | Action | Timeline |
|---|---|---|
| 1 | Visit www.ssf.gov.np | — |
| 2 | Register through SOSYS Online | — |
| 3 | Submit required documents | — |
| 4 | Receive SSF number and credentials | — |
| 5 | Receive registration certificate | 2 days |
| 6 | Register employees | Within 3 months |
For Employer:
- Company Registration Certificate
- PAN/VAT Certificate
- Details of Employer
- Application to SSF Office
For Employee:
- Details of Employee
- Citizenship/National ID/PAN/Passport
- Passport-size photograph
| Contributor | Rate |
|---|---|
| Employee | 11% of basic salary |
| Employer | 20% of basic salary |
| Total | 31% of basic salary |
No, there is no government fee required for SSF registration. The process is free for both employers and employees. All documents can be submitted online without physical submission.
- Medical Treatment, Health and Maternity Protection - Hospital treatment up to NPR 100,000/year
- Accident and Disability Protection - Work injury coverage and disability pension
- Dependent Family Protection - Spouse pension, children's scholarship, funeral expenses
- Old Age Protection - Retirement pension after 15 years of contribution
Example calculation (NPR 100,000 salary with 40% allowance):
| Component | Amount |
|---|---|
| Basic Salary (60%) | NPR 60,000 |
| Employee Contribution (11%) | NPR 6,600 |
| Employer Contribution (20%) | NPR 12,000 |
| Total Monthly | NPR 18,600 |
| Benefit | Entitlement | Contributor Pays |
|---|---|---|
| Hospital treatment | Up to NPR 100,000/year | 20% |
| Pregnancy/maternity | Up to NPR 100,000/year | 20% |
| Outpatient care | Up to NPR 25,000/year | 20% |
| Maternity allowance | 1 month minimum salary (up to 2 children) | — |
No, SSF registration is compulsory for all employees. Under Section 6 of the Act, employees must participate in all schemes with no provision for opting out. Employers cannot exempt employees from enrollment.
| Violation | Penalty |
|---|---|
| Late contribution deposit | 10% interest charge |
| Misappropriating employee contributions | Fine equal to amount (minimum NPR 100,000) and/or up to 1 year imprisonment |
| Failure to register | Fines and legal action |
When an employee changes jobs:
- SSF number remains unchanged
- Contributions continue under new employer
- Benefits accumulate across employment periods
- New employer must update SSF records
| Loan Type | Maximum Amount |
|---|---|
| Housing loan | NPR 7,500,000 |
| Education loan | NPR 3,500,000 |
| Social events loan | NPR 500,000 |
| Without collateral | 80% of deposits |
Eligibility: Minimum 36 months of consistent contributions.
Contributions must be deposited within 15 days following the end of each month. For example, January contributions must be deposited by February 15. Failure to deposit on time results in 10% interest charges on the employer contribution amount.
