The Social Security Fund (SSF) has become mandatory for a growing share of Nepali employers, and it materially changes both payroll processing and employee take-home tax.
Employer Registration
Employers register their business and enroll employees through the SSF online portal, which then requires ongoing monthly contribution entries — a meaningfully more complex process than the PF-only payroll many businesses ran previously.
Contribution Structure
Both employer and employee contribute a percentage of salary into the fund, covering benefits including provident fund, gratuity, medical insurance, and other social protections bundled under one scheme rather than managed separately.
The Tax Benefit for SSF Contributors
Employees who contribute to SSF are exempt from the 1% social security tax on the first income slab — under the current structure, this makes the first NPR 5,00,000–6,00,000 (or NPR 10,00,000 under the new FY 2083/84 unified schedule) of income effectively tax-free at that first bracket.
Managing the Transition
Moving from a standalone Provident Fund arrangement to full SSF enrollment involves reconciling historical contributions and updating your payroll software — not a same-day switch, so plan for a transition period.
Company Sathi manages SSF registration and ongoing contribution filing as part of full payroll support.
