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.
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:
- To get registered in the fund immediately and to enlist its employees too.
- To deposit the amount of contribution calculated from the date employment relationship between such employer and employee was established and interest.
- Even if the employment relationship between certain employees and employers has ended, to pay the amount equal to the facility that employee is entitled in the period of the employment as per law.
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:
- Submit the online application in the prescribed format.
- Attach all the necessary documents
- 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
- Open the website of SSF. https://ssf.gov.np/np
- Click on employer registration and then click on new registration.
- You need submission no to register employer, to get submission no, enter the required information
- Click on submit and ok
- Fill all the information related to the employer
- Click on the submit button. After submitting, you cannot change the filled record.
- SSF will verify this record and the employer will get the user name, password, and SSID.
Procedure for Contributor Registration
- Login to Employer Portal by using the employer user name, password, and SSID
- Click on the Contributor Register and choose KYC.
- Get Submission No.
- Fill the required details
- SSF verifies the record and contributor user name, password and SSID will be provided.
You may visit https://ssf.gov.np/np for reference.
Documents to be submitted to get registered
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
- Log in to Employer Portal and Click on the Collection button.
- Submission number will be asked, for which you have to click on GetSubNo and the Submission number will be displayed which you have to take note of.
- Enter Submission no.
- Select Bank Name and Account No.
- For the first time, you shall fill up the amount of basic salary of the employee.
- The amount to be deposited will be shown.
- Click on Recalculate Penalty and the Grand Total of the amount to be deposited will be shown.
- Click the Save button and if all the details that you filled are correct click on the Submit button.
- The print and Payment button will be active.
- You can either print the voucher and pay through a bank or make online payment through the Nepal Clearing House by clicking on the Payment button.
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.)
- When you click on the Payment button, you shall write Payment for SSF in the Payment Module and click on Proceed.
- Username and Password of Connect IPS will be asked which you shall fill and Sign in.
- The voucher will be displayed as per the details you filled.
- Select the Bank Account and click on the submit button.
- You will receive One Time Password (OTP) in the registered mobile phone via SMS.
- Click Submit button
- Transaction Successful alert will be shown.
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:
- To freeze the account of a bank or financial institutions
- To freeze the property of the concerned person or the organization
- To cut off or hold the facility, subsidy that he/she is entitled as per law
- To suspend the license or certificate of permission of the concerned person or the organization
- To freeze the passport of the concerned person.
The concerned authority commences the necessary process for the same within 15 days of receiving such writing from the director of the fund.