Social Security Fund in Nepal

Social Security Fund (SSF) is a newly introduced concept in Nepal. With the enactment of Social Security Act and Rules, the Government has implemented and enforced the SSF. However, many employers and employees are still confused and uninformed about the provisions regarding the SSF. At Chintan Law Associates, we have expertise in matters related with employment and labor law. We provide expert opinions and services to our clients in these matters. Below are some basic Q&As that shall help anyone trying to get information about SSF. It is now compulsory for all the employers, including the companies, firm, NGOs, INGOs, agencies to register at SSF and also deposit the required contribution of its employees.

1. How can one participate in SSF?
   By visiting the website of SSF at www.ssf.gov.np one can register by clicking SOSYS online Registration after which a unique SSF number, username and password can be obtained. After this all the necessary details of employer and employee can be updated and uploaded online.
   

    

2. What benefits can one obtain after participating in SSF?
   -Medical checkups and maternity security plan
   -Accidental and physically impaired Security plan
   -Dependent family security plan
   -Old age security plan
   
   
3. How to deposit amount in SSF?
   Amounts can be deposited online in SSF through Connect IPS. SSF bears a call account in Nepal Bank Limited, having account number 00211606720012000002.
   
   
4. Is it absolutely compulsory to participate in SSF?
   It is a compulsory to participate in the SSF pursuant to the Labour Act. However, in the writ petition filed by the employees of Banks, a joint bench of Supreme Court has issued an interim order on 3 August 2021 to make the participation optional until the final verdict is passed by the SC.
   
   
5. What is the total contribution to be made in SSF?
   31% of the basic salary of an employee must be deposited in the SSF. 20% of which shall be borne by the employer and the remaining 11% shall be borne by the employee.
   
   
6. What happens if an employee resigns from an enterprise and joins another enterprise?
   The social security number of such employee shall remain the same. Regular contribution shall have to be made even from a different entity.
   
   
7. What if someone quits a job and starts own business?
   Self-employed persons can also be a part of SSF by depositing regular contribution. In case if someone quits an existing job and starts own business, such person can continue to contribute in SSF.
8. Is it necessary to deposit 1% social security tax after participating in SSF?
   Not necessary. 1% social security tax is not required to be paid after contributing in the SSF.
   
   
9. Until what age does one have to contribute in SSF?
   Until 60 years of age. One must contribute for 15 years regularly to get pension from SSF. If someone retires before contributing for 15 years, such employee shall receive lump sum.

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