:: 31% | SSF total (employee 11% + employer 20%)
:: 10% / 10% | EPF default (employee / employer)
:: NPR 15,500 | SSF total on NPR 50,000 basic salary
:: 15th | SSF deposit day of the next Nepali month
The short answer
SSF is 31% of basic salary: the employee pays 11% and the employer pays 20%. EPF is usually 10% from the employee and 10% from the employer. Both are calculated on basic salary, not on allowances. SSF is deposited by the 15th of the following Nepali month.
SSF rates in Nepal
The Social Security Fund (SSF) works under the Contribution-Based Social Security Act, 2074. A company enrolled in SSF deposits 31% of each employee's monthly basic salary.
Employee share: 11%
- 10% provident fund
- 1% social security tax
Employer share: 20%
- 10% provident fund
- 8.33% gratuity
- 1.67% additional contribution
The employee's 11% is deducted from salary. The employer's 20% is paid on top of salary. The 1% social security tax is already part of the employee's 11%, so employees contributing to SSF are not charged it again in income tax.
Worked example: basic salary NPR 50,000
- Employee share, 11%: NPR 5,500 (deducted from salary)
- Employer share, 20%: NPR 10,000 (paid by the company)
- Total deposited to SSF, 31%: NPR 15,500
The employer share is made of 5,000 provident fund, 4,165 gratuity and 835 additional contribution.
EPF rates in Nepal
The Employees Provident Fund (EPF) is the older provident fund system. The usual contribution is 10% of basic salary from the employee and 10% from the employer, 20% in total. On a basic salary of NPR 50,000 that is NPR 5,000 from the employee and NPR 5,000 from the employer.
SSF or EPF: which one applies?
Companies enrolled in SSF do not run a separate provident fund, gratuity or medical insurance arrangement for the same employees, because SSF includes them. Which system applies to your company depends on how it is registered, so confirm with the SSF office or your accountant.
Deadlines and common mistakes
The employer deposits the full SSF amount (employee and employer share together) by the 15th of the following Nepali month. A late deposit can add interest, and a new employee must be enrolled by the employer.
Common mistakes:
- Calculating on total salary instead of basic salary.
- Forgetting to deduct the employee's 11% from the payslip.
- Paying only the employee share and leaving out the employer's 20%.
- Missing the monthly deposit date.
Let the software do the calculation
Attendance.work calculates the SSF and EPF share of every employee, deducts the employee share when you mark a salary as paid, and shows it on the payslip that goes to the employee by email. The payroll table lists salary, deduction, payable amount and the SSF and EPF shares of all employees, and you can print it or save it as PDF. The percentages are set in the dashboard, so you can match your company's rates.
It does not yet create files for the SSF portal upload or calculate income tax. Start your 14-day free trial or read about attendance software in Nepal.
Please note
This article is general information, not legal or tax advice. Rates and rules can change, so confirm them with the Social Security Fund office or your accountant.