Social Security Fund (SSF) contributions in Nepal
For an employee enrolled in the Social Security Fund, the employee contributes 11% and the employer 20%, 31% in total. The employer 20% is made up of provident fund 10%, gratuity 8.33% and insurance 1.67%. SSF contributors also do not pay the 1% social security tax slab on their salary tax.
Last reviewed: 2026-10-10. This is general information, not tax advice.
How the 31% splits.
The two shares are worked out separately and only one of them comes out of the employee's pay.
- Employee: 11%, deducted from salary before net pay.
- Employer: 20%, paid by the employer: provident fund 10%, gratuity 8.33%, insurance 1.67%.
- Total: 31%.
The tax side.
Salary tax starts with a 1% social security tax slab (the first NPR 10,00,000 for FY 2083/84). An SSF contributor pays nothing on that slab, so their tax starts at 10%. SSF deposits also count toward the PF, SSF and CIT deduction, capped at one third of gross salary or NPR 5,00,000, whichever is lower.
How EK ERP handles it.
- For staff enrolled in SSF, each payroll run works out the employee and employer contributions.
- The employee share is deducted before net pay.
- Salary TDS for SSF contributors skips the 1% social security tax slab.
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SSF, answered.
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What are the SSF contribution rates in Nepal?
Employee 11% and employer 20%, 31% in total. The employer 20% is provident fund 10%, gratuity 8.33% and insurance 1.67%.
Do SSF contributors pay the 1% social security tax?
No. The 1% social security tax slab is waived for SSF contributors, so their salary tax starts at the 10% slab.
Does EK ERP calculate SSF?
Yes. For staff enrolled in the Social Security Fund, each payroll run works out the employee and employer SSF contributions and deducts the employee share before net pay.
Is this tax advice?
No. This is general information, not tax advice. It was last reviewed on 2026-10-10. Check the current Act or ask your auditor before you file.
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