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SSF contribution calculator

31% of basic salary goes to the Social Security Fund every month — 11% deducted from you and 20% paid on top by your employer. It is charged on basic, not on your package, and only one of the four schemes is money you get back as savings.

Your monthly pay

Basic is the line on your payslip that allowances are calculated from — usually 50 to 60% of gross. If your payslip shows only one figure, put it in both boxes.

Rs 9,300a month into the Fund · Rs 3,300 from you, Rs 6,000 from your employer

Rules used11% + 20% of basic under the Contribution Based Social Security Act 2074 and the SSF scheme operating procedures. These rates are set by the Act, not by an annual Finance Act.

Who pays what

You, at 11% of basicRs 3,300
Employer, at 20%Rs 6,000
Into the Fund each monthRs 9,300
Over a yearRs 1,11,600
Your pay before taxRs 46,700
Total cost to employ youRs 56,000

Savings against insurance

Retirement potRs 8,499
Insurance coverRs 801
Deducted from you, as a share of gross6.60%

The deduction is 11% of basic, which is a smaller share of what you actually earn.

Where the 31% goes
SchemeRateA monthWhat it buys
Medical treatment, health and maternity1%Rs 300Outpatient and hospital cover, and maternity benefit, after three months of contribution.
Accident and disability protection1.4%Rs 420Workplace and other accidents, and a disability pension where the loss is permanent.
Dependent family protection0.27%Rs 81Pension and education support for the family if the contributor dies.
Old-age protection28.33%Rs 8,499The retirement half. Paid back as a pension after 180 months of contribution, or as a lump sum if you stop short of that.

You do not also get a gratuity. An SSF-registered employee does not also receive a separate gratuity. The employer’s 20% is the vehicle for gratuity, provident fund, medical and pension together. If you are enrolled and your employer is also promising a separate end-of-service payment, one of those two things is not what it appears to be.

And you should not be paying the 1% social security tax. A contributor does not pay the 1% social security tax in the first income-tax band, because this contribution is that levy’s replacement. If your payslip shows both, ask — the salary tax calculator has a switch for exactly this.

The 31% is not 31% of your salary

It is 31% of basic remuneration. On a package where basic is 60% of gross, the deduction from your pay is 6.60% of what you earn, not 11%. This is the commonest misreading of a Nepali payslip, and it runs both ways: employers who budget 31% of gross over-provision, and employees who expect 11% of gross to disappear are relieved when it does not.

It also means the split between basic and allowances is a real decision, not an accounting formality. A package restructured to lower basic lowers the employer's contribution and lowers your pension pot with it.

Only 28.33% of it is yours to get back

Old-age protection is savings: it accumulates in your name and comes back as a pension or a lump sum. The other three schemes —2.67% between them — are insurance. You get nothing back from them if nothing goes wrong, which is what insurance is, and it is worth knowing that is the deal rather than discovering it at the end.

180 months decides pension or cheque

Contribute for 180 months — fifteen years — and old-age protection pays a monthly pension for life. Stop short of that and the balance comes back as a lump sum instead. The months do not have to be continuous and they do not have to be with one employer, which is why transferring your contributor number when you change jobs matters more than almost anything else you do with the Fund.

The contribution reduces your tax bill

Contributions to an approved retirement fund are deductible against income tax, capped at the lower of Rs 5,00,000 and one third of assessable income. For most salaried contributors the SSF contribution is comfortably inside that cap, so the whole of your 11% comes off assessable income before the bands are applied. The salary tax calculator takes it as the retirement contribution figure.

Related

The gratuity calculator shows what the 8.33% inside your employer's contribution is worth, and the TDS calculator covers deductions on payments that are not salary.

Common questions

Is this Nepal SSF contribution calculator page free to use?
Yes. Every Kaamko tool is free, with no sign-up, no account and no usage limit. They are published by Imperial College of Engineering, a Tribhuvan University-affiliated engineering college in Tathali, Bhaktapur, and are not funded by advertising.
Does what I type get sent anywhere?
No. This tool runs entirely in your browser: the calculation happens on your own device, nothing you type is uploaded, and nothing is stored after you close the page.
Where do the figures come from?
Each tool names its source on the page, along with the date that source was read. Where a rate or a slab is provisional — announced in a budget speech but not yet gazetted, for instance — the page says so rather than presenting it as settled.
Who maintains these tools?
Imperial College of Engineering, formerly Janakpur Engineering College, in Tathali, Bhaktapur, Nepal. Corrections are welcome by phone on 01-5091616 or through the contact page, and a figure reported as wrong is checked against its published source rather than adjusted on request.

Last checked by Imperial College of Engineering. Rates, slabs and formulas are re-checked against their published source on this date.