Overview
Karmachari Sanachaya Kosh (Employees Provident Fund—EPF) (Nepali: कर्मचारी सञ्चय कोष) was established in 1944 as a Nijamati Provident Fund. The EPF is managed as a Provident Fund (PF) in Nepal on behalf of the Government for government, public, and private sector employees and comes under the Ministry of Finance.
The EPF approved the retirement fund of the Government of Nepal (GoN), and the Provident Fund (PF) that it manages is supposed to help its contributors financially upon retirement or separation from their jobs. Besides managing the Provident Fund of our contributors, it also provides certain social benefits to our contributors.
Membership in EPF is also open to private sector firms, with the only condition that firms have at least 10 (ten) employees contributing regularly to become members.
History of Provident Fund in Nepal
In Nepal, the history of the Provident Fund dates back to 1934 when the Provident Fund scheme began with the establishment of Sainik Dravya Kosh (Army Provident Fund) during the Rana Regime. The scheme was initiated to remove financial hardships for the army personnel after retirement. Under the scheme, the army staff was required to contribute a specific percentage of their salary to their provident fund (Sanchaya Kosh) account in Sainik Dravya Kosh. A decade later, the scheme was broadened to cover the employees of the civil services.
A separate organization named Nijamati Provident Fund (NPF) was established in 1944 to manage the scheme for civil servants working within Kathmandu. In 1948, the scheme's coverage was extended to all civil servants working throughout Nepal. In 1959, the Employees Provident Fund Department was established under the Ministry of Finance and Economic Affairs. This department was entrusted with managing the Sainik Dravya Kosh and the Nijamati Provident Fund. The scheme's scope was extended to cover all government employees, including the police.
Three years after the establishment of the EPF Department, a special Act called the "Karmachari Sanchaya Kosh Act" was legislated in 1962. Under the act, the Karmachari Sanchayakosh was established as an autonomous provident fund organization.
After KSK was established, the erstwhile Sainik Dravya Kosh, Nijamati Provident Fund, and Provident Fund Department were merged into Karmachari Sanchaya Kosh. Since then, Karmachari Sanchaya Kosh (KSK) has grown by leaps and bounds, and today, it stands as a strong social security provider organization in Nepal.
Scope of Operations
The Fund manages provident savings for government, public, and private sector employees and self-employed contributors.
Since Shrawan 1, 2076 BS, in accordance with the Retirement Fund Act, 2075, it has also administered retirement savings for civil servants of the Government of Nepal, the Army, the Police, the Armed Police Force, and employees of all government-owned and grant-aided bodies.
Social Security and Loan Facilities
The Fund provides social security benefits, researches additional facilities, and operates various loan schemes to meet contributors’ service-period needs.
Legal and Administrative Framework
The Fund, organized as a mandatory savings institution under the Income Tax Act, 2058, defines itself as an approved retirement fund. The Ministry of Finance manages its relationship with the government of Nepal. The central office is located in Pulchowk, Lalitpur.
Vision and Mission
Vision
Develop the Fund, through management of provident, retirement, and other social security schemes, into an integrated social security institution for the government and public sectors.
Mission
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Mobilize resources effectively, deliver sustainable, high-quality services, and expand basic social security programs to establish the Fund as a respected provider.
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Adopt lean management, quality service development, competitive and service-friendly practices, and collaboration and partnership to develop into an internationally capable social security institution.
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Foster a happy and healthy family of satisfied contributors through sound management of provident, retirement, and other schemes.
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Utilize long-term savings for the nation’s productive and infrastructure development, contributing to sustainable economic growth.
Legal Structure
Board of Directors
Under the Employees Provident Fund Act, 2019, a seven-member Board of Directors is constituted:
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A Chair appointed by the Government of Nepal
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Three Directors nominated by the government from various services
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Two Directors nominated by the government from banks, financial institutions, and other organized bodies
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The Fund’s Administrator as Director
Nominations ensure rotational representation across services, financial institution,s and organized bodies. The term of office for all directors except the Administrator is three years; upon expiration, they may be reappointed once.
Responsibilities
The Board drafts plans, programs, and policies, approves the annual budget, and, through the administrator, oversees all daily operations under the Act’s rules and regulations.
Financial Services
Special Loan
Launched in 2057 BS to meet contributors’ financial needs. Contributors with two years of regular deductions may borrow up to 90 percent of their accumulated balance. Applications can be made in person at the Thamel office, Lagankhel, Singha Durbar service centers, or any branch. Since Jestha 2077 BS, contributors may apply online, with funds deposited directly into their bank account.
Eligibility and Conditions
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Minimum two years of regular contributions
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Re-application permitted one year after the previous loan
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If previous loans and interest are fully repaid, a new loan may be taken at any time
Required Documents
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Physical application:
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Application form certified by the office head
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Original and copy of the Fund identity card
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Online application:
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Log in at https://login.epf.org.np/ or via the EPF App
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No form upload required
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Office KYC and individual KYC must be up to date
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Online Repayment
Contributors with updated KYC may repay special, home, educational, revolving, and home-repair loans and interest via NCHL ConnectIPS or mobile banking. Repayment is recorded upon transfer.
Home Loan
Purpose: house construction, land purchase, additional floors
Limit:
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Service period remaining ≤ 10 years: up to ten years’ salary
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Service period remaining > 10 years: up to fifteen years’ salary
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Maximum NPR 1 crore
Eligibility
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Minimum two years of regular contributions
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Service period ≥ 2 years before retirement
Collateral
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House or land within the Fund’s designated area, under the contributor, spouse, or both
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Minimum road width: 8 ft in Kathmandu Valley; 12 ft elsewhere
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Minimum land area:
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Municipality: 2½ aana or five dhur
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Rural municipality: 4 aana or 7½ dhur
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Utilization Period
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The first installment must be used within six months of approval, or the loan will be cancelled.
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The entire loan must be utilized within two years of the first disbursement.
Fees
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Management fee: NPR 2,000 (non-refundable)
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Valuation fee: NPR 5,000 (excluding VAT) plus NPR 2,000 per disbursement
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Additional NPR 1,000 for valuations outside Kathmandu Valley
Required Documents
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Office-recommended home loan application form
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Certified copies of Fund card, KYC, spouse’s, and minor children’s citizenship
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Relationship certificate
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A letter stating salary and retirement date
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Copy of land ownership certificate and related documents
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Original and 30-day-old map and trace paper of collateral property
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30-day-old road-opening certificate from the local authority
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Receipt of the current fiscal year's property tax
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Approved house construction permit
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Certified house plan (site plan/elevation plan)
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Construction completion certificate (if applicable)
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Schedule 2 purchase agreement (if applicable)
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Statement of assets and liabilities
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A recent photo showing the property boundary and the road
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Any additional documents as required
Educational Loan
Purpose: higher education for the contributor, spouse, or child
Limit: same salary-based limit as Home Loan, capped at NPR 4,000,000
Eligibility, Collateral, Conditions, Fees, and Documents
All criteria mirror the Home Loan, except the cap of NPR 4,000,000.
Simple Loan
Purpose: social work or other miscellaneous needs
Limit: same salary-based limit, capped at NPR 6,000,000
Eligibility, Collateral, Conditions, Fees, and Documents
Conditions mirror those of the Home Loan, except the cap of NPR 6,000,000.
Home Repair Loan
Purpose: home maintenance and repair
Limit: same salary-based limit as Home Loan, capped at NPR 4,000,000
Eligibility, Collateral, Conditions, Fees, and Documents
Conditions mirror those of the Home Loan, except the cap of NPR 4,000,000.
Land Purchase Loan
Purpose: land acquisition
Limit: salary-based limit capped at NPR 1 crore
Collateral and Conditions
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Designated land only
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Minimum road width: 12 ft
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Minimum land area: same as Home Loan
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Utilization period, fees, and documents mirror the Home Loan, referencing the land purchase application.
Branch Offices and Service Centres
Branch offices: Viratnagar, Hetauda, Butwal, Surkhet, Pokhara, Dhangadhi, Kohalpur, Janakpur
Service centres: Dhankuta, Singha Durbar, Birtamode, Lagankhel
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Office Name |
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Telephone |
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Central Office, Pulchowk |
01-5010165 |
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01-4223320, 01-5359607, 01-5352140 |
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Lagankhel: |
01-5521992 |
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Branch Office/ Service Center Name |
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Telephone |
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Branch Office, Biratnagar |
021-472784 |
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Branch Office, Janakpur |
041-422166 |
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Branch Office, Hetauda |
057-524377 |
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Branch Office, Pokhara |
061-526811 |
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Branch Office, Butwal |
071-551518 |
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Branch Office, Kohalpur |
081-541282 |
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Branch Office, Surkhet |
083-523066 |
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Branch Office, Dhangadhi |
091-520692 |
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Sewa Kendra, Dhankuta |
026-520049 |
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Sewa Kendra, Singhadurbar |
01-4200466 |
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Sewa Kendra, Lagankhel |
01-5525707 |
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Sewa Kendra, Birtamode |
023-591228 |
