What is the social security fund (SSF)?

It is the fund that is established under the Contribution Based Social Security Act, 2074. As the name suggests, the employers and the employees have to make a contribution to the fund each month to enjoy the benefits provided under social security schemes. In total, 31% of the basic salary of the employees is to be deposited in the fund, out of which 20 % is contributed by the employer and 11% is contributed by the employees.

NOTE: Those who do not contribute to the social security fund are not entitled to any social security provided under the act.

Compulsory Participation

Yes, the government has made it compulsory for the government employees and employees of the formal sector to make a contribution to social security funds to enjoy the social security facility. The Labor Act, 2074 has made its provision compulsory under chapter 10. Moreover, the Social Security Act has provided that if any employer does not register itself within the given time or if the employer does not register its employees, the following order will be given to the employer:

Is social security only for employees of the formal sector?

The employees employed in the informal sector, as well as the self-employed person, can also participate in the social security schemes as published in the Nepal Gazette.

How to participate in the Social Security Fund?

First of all, the employer needs to get registered. The procedure to get registered are:

  1. Submit the online application in the prescribed format.
  2. Attach all the necessary documents
  3. The employer will then get the certificate of registration with the registration number.

Once the employer is registered, the employer shall submit an application to register his/her employees and the employees are provided with the identity card having a social security number.

Note: The employer shall register his/her employee within 3 months from the date of appointment or establishment of the employment relationship.

Step by step procedure for Employer Registration

Procedure for Contributor Registration

You may visit https://ssf.gov.np/np for reference.

Documents to be submitted to get registered

Employees Employee
  • Certificate of registration of the firm or company
  • Citizenship certificate/ National Identity Card/ Passport
  • Certificate of Permanent Account Number (PAN) or Value Added Tax (VAT)
  • Photo of the employee to be registered
  • The decision regarding the registration
  • Power of Attorney if the employee cannot be present him/herself

Registration Number and Social Security Number

After registration with the SSF, employers are provided with the registration number of 16 digits and the certificate of registration. The employees are provided with the social security number of 11 digits and the identity card having such numbers.

What if the employer does not register its employees within the given time?

If the employer does not register its employees within the given time, the employees can submit an application to the social security fund. Upon receiving such an application and necessary inspection, the fund will order the employee to register its employees within 15 days. It is the responsibility of the employer to follow such an order of the fund.

Time of Payment of the Contribution

The contribution shall be made monthly. It shall be paid within 15 days of the expiration of each month.

If not paid in time, the fund can recover such amount along with 10% interest. Such interest can be fully or partially exempted upon the inspection of the application made mentioning the reasons for non-payment of contribution on time.

Procedure of Payment

For Online Payment (You shall have a Connect IPS Account. If you do not have the account, you can click in this link and open your account https://login.connectips.com/customer/register. You may visit https://www.youtube.com/watch?v=nMTQSFEzaWU for reference.)

You may visit https://ssf.gov.np/uploads/content/1566211716_np.pdf for reference.

What if the registered employer does not make a contribution on time?

Until the contribution is made, the director of the fund can write to the concerned authority to take the following actions:

The concerned authority commences the necessary process for the same within 15 days of receiving such writing from the director of the fund.

One Response

  1. Thank you very much for the update about SSF highlighting current provisions, procedures and issues for further development (to be addressed).

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