Social Security Fund (SSF)

Social Security Fund (सामाजिक सुरक्षा कोष)

A nation’s prosperity is possible only when the future of its citizens is secure. Life is uncertain; risks such as illness, accidents, old age, or death can arise at any time. To ensure economic and social protection amid such uncertainty, the Government of Nepal introduced the concept of a “contribution-based Social Security Fund” (Social Security Fund – SSF).

This fund was established with the goal of expanding benefits such as pensions and gratuity—previously limited only to government employees—to workers in the private and informal sectors. It is not merely a government account or a tax. It is a “lifeline” that protects the interests of both workers and employers. It addresses a worker’s concern, “Who will look after my future?” and an employer’s stress, “How do I meet my responsibilities toward workers?”

In this profile article, we discuss the Social Security Fund’s legal foundation, its schemes, the claims process, and practical solutions to common problems in detail.

Social Security Fund: Identity Snapshot

For readers seeking key facts and basic information, here is a concise snapshot of the Fund:

• Official Name (Nepali): सामाजिक सुरक्षा कोष (Samajik Suraksha Kosh)

• Official Name (English): Social Security Fund (SSF)

• Institution Type: Autonomous body of the Government of Nepal (Statutory Body)

• Line Ministry: Ministry of Labour, Employment and Social Security

• Year Established: BS 2067 (Act introduced: 2074; scheme started: 2075, Mangsir 11)

• Head Office: Babarmahal, Kathmandu, Nepal

• Website: www.ssf.gov.np

• Contact/Helpline: 1151 (toll-free), 01-4260851

• Core Objective: To collect contributions from workers and employers and provide financial security through designated social security schemes.

Lack of public understanding: Many people think SSF only collects taxes. In reality, “SSF converts your small monthly savings into a larger insurance and pension plan that supports you when you fall ill, face an accident, or need support in old age.”

Legal Foundation and Mandate

This Fund is not an ad hoc committee. It is a strong institution guided by Nepal’s Constitution and laws passed by Parliament. Without understanding its legal foundation, its importance cannot be fully understood.

Key legal documents:

1. Constitution of Nepal: Article 34 (Right to Labour) and Article 43 (Right to Social Security).

2. Contribution-Based Social Security Act, 2074: This is the backbone of the Fund.

3. Contribution-Based Social Security Regulations, 2075: The method for implementing the Act.

4. Social Security Scheme Operation Procedure, 2075 (with amendments): Detailed rules on benefits and entitlements under each scheme.

Mandate of the Fund:

• Bring workers from both formal and informal sectors under the social security framework.

• Collect contributions and invest them securely.

• Ensure timely and transparent payment of claims.

Definitions (in simple language):

• Contributor: A person (worker) who deposits a portion of earnings into the Fund.

• Employer: A company, institution, or person that provides work.

• Dependent family: Spouse and/or children who receive benefits if the contributor dies.

Vision, Mission, and Core Values

Although government documents often use complex language, the meaning is simple for the general public:

Vision: A dignified and happy life with a secure future.

Mission:

• Bring all workers under the social security umbrella.

• Deliver transparent and technology-friendly services.

• Provide sustainable economic protection.

Service commitments:

• Real-time visibility of contributions in accounts.

• Payment within specified days after claim processing is completed.

• Prompt hearing of grievances.

Who SSF Serves (Eligibility)

Although it was initially seen as only for staff of private companies, SSF’s scope is now broader.

1. Formal sector:

• Full-time, part-time, or contract employees working in companies, industries, institutions, and NGOs/INGOs.

• Employees of private schools, colleges, and hospitals.

2. Foreign employment (new provision):

• Nepali citizens working abroad or preparing to go abroad with labour approval.

• Nepali citizens who are self-employed abroad.

3. Informal and self-employed sector (new provision):

• Domestic workers, agricultural workers, construction labourers.

• Individuals running small businesses.

Who is not covered?

• Permanent employees of the Government of Nepal who receive government pension benefits (civil service, army, police—these groups have separate provident fund and pension systems).

Why join?
Even if you change jobs repeatedly, your social security account remains the same. When you leave one job and join another, your previous amount does not disappear—it continues accumulating in the same account.

Governance Structure

Who manages the Fund’s money? This is a critical question. The Fund operates under a “tripartite” model.

Board of Directors:
It includes representation from three sides, maintaining checks and balances:

1. Government: Labour Secretary (Chairperson).

2. Employers: Representatives including from the Federation of Nepalese Chambers of Commerce and Industry (who pay contributions).

3. Labour trade unions: Representatives of workers (who receive benefits).

Because of this structure, the government cannot unilaterally use the Fund’s money arbitrarily. Workers and employers also have veto power.

Schemes and Benefits

This is the most important section, answering the question: “What do I get?” For the formal sector, the total contribution of 31% is allocated across different schemes.

(a) Medical Treatment, Health, and Maternity Protection Scheme

Who is eligible: After 3 months of contributions.

Benefits:

• Inpatient hospitalization (IPD): Treatment expenses up to NPR 100,000 per year (Fund covers 80%, individual pays 20%).

• Outpatient (OPD): Up to NPR 25,000 per year (included within the NPR 100,000 limit).

• Maternity: Newborn care support when a female contributor, or the wife of a male contributor, gives birth (equal to one month of minimum remuneration per child). In addition, a female contributor can receive salary for up to 98 days at a 60% rate if the employer has not provided it.

(b) Accident and Disability Protection Scheme

Who is eligible: Applicable from the date of contribution.

Benefits:

• Work-related accident: If an accident occurs during work, the Fund covers all treatment costs (no limit).

• Other accidents: If an accident occurs outside work (e.g., falling at home, during leave), treatment costs are covered up to NPR 700,000.

• Disability: If a contributor cannot work due to an accident, lifetime monthly allowance (pension) or a lump sum amount (based on the percentage of disability).

(c) Dependent Family Protection Scheme

Who is eligible: The contributor’s family in case of the contributor’s death.

Benefits:

• Spouse pension: 60% of the contributor’s last basic salary, paid monthly for life.

• Child allowance: Educational allowance (40% amount) for children below 18 years (or 21 years if studying).

• Funeral expenses: Lump sum NPR 25,000.

(d) Old Age Security (Pension)

The amount accumulated under this scheme (28.33%) is received later.

• Pension scheme: For those joining after the end of Ashad 2078, this amount goes to the pension scheme (monthly pension begins after reaching age 60 and completing 15 years of contributions).

• Retirement option: Those who joined before Ashad 2078 may choose to exit with a lump sum amount plus interest or continue under the pension scheme.

• Special loan: A contributor may take a loan for home, education, or special purposes, borrowing a certain percentage of their accumulated amount (as per current rules, 80–90%).

Contribution System: How Money Is Deposited

Understanding this calculation is essential. This is not magic—it is a joint investment by you and your employer.

For the formal sector (company employees):

• Total contribution: 31% of basic salary

• Deducted from worker’s salary: 11%

• Added by employer: 20%

Example:
If your basic salary is NPR 15,000:

• Deducted from your salary: NPR 1,650 (11%)

• Added by employer: NPR 3,000 (20%)

• Total deposited to the Fund: NPR 4,650 (31%)

Allocation of the 31% contribution:

1. Medical treatment and maternity: 1%

2. Accident and disability: 1.40%

3. Dependent family protection: 0.27%

4. Old age security (pension/gratuity): 28.33%

Note: For foreign employment and the informal sector, rules are slightly different (generally, a minimum deposit starting from around NPR 2,000 is required, and since there is no employer, the individual deposits fully or partially).

Registration Process

Registration is now fully online (paperless).

(a) Employer registration

1. Visit the SSF website (ssf.gov.np).

2. Click “Employer Registration.”

3. Enter the company’s PAN/VAT, registration certificate, and details of the contact person.

4. After submission, you receive a “Submission Number” via email.

5. After verification, the Fund provides an “SSF Employer ID” and password.

(b) Employee registration

This is done by the employer through their login.
Required details include the employee’s citizenship certificate, photo, mobile number, and bank account details.
After entry, the employee receives an 11-digit SSF ID (social security number) on their mobile.

(c) Record correction

If the name or date of birth is incorrect, the employer must submit an online “Correction Request” and upload a scanned copy of the citizenship certificate. Since this problem occurs frequently, it is wise to enter correct details from the beginning.

Digital Services and App

The Fund uses software called “SOSYS” (Social Security System).

What users can do:

• Download the SSF Nepal Mobile App.

• Log in using SSF ID and password.

• View monthly contribution statements.

• Update KYC.

• Apply for loans.

• Track the status of submitted claims.

Claims Process Guide

Many people feel frustrated because they do not know how to claim benefits. Below is a “claim checklist”:

Scenario 1: Medical claim

Cashless method (easier): Visit hospitals contracted with the Fund. Show your SSF card or identity card and an official government document for identification. You pay only 20%, and the hospital claims 80% directly from the Fund.

Reimbursement: If you receive treatment at another hospital, keep bills, prescriptions, and discharge summary safe. Submit the claim online within 35 days.

Scenario 2: Accident claim

A police report (if it is a road accident) or an employer letter (if it occurs at the workplace) is mandatory.
Scan bills and documents and upload them to the portal.

Main reasons claims are rejected:

• Claim submitted after the specified time limit.

• Missing documents (e.g., doctor’s signature and stamp on the bill).

• Employer not depositing contributions regularly.

Common Problems and Troubleshooting

Based on the writer’s experience, these are common user problems and solutions:

Problem 1: Money deducted from salary but not deposited to SSF

Solution: Check your statement in the mobile app. If the amount is not deposited, first ask the employer’s HR or accounts section. If not resolved, file a grievance with SSF using payslip or bank statement as evidence.

Problem 2: Duplicate account created

Solution: Sometimes, a new number may be created when changing employers. In such cases, visit the Fund office or submit a “Merge Request” by email.

Problem 3: Forgot login password

Solution: Click “Forgot Password” on the website or app. An OTP will be sent to the registered mobile number or email, after which you can set a new password.

Service Delivery Timelines

• Contribution update: Within 1–3 days after depositing money in the bank.

• Medical claim payment: Within 15 to 30 days after all required documents are received.

• Pension processing: Shortly after retirement or after initiating the process.

Note: If documents are incomplete, timelines may extend.

Transparency and Accountability

SSF uses public funds, therefore its audit is conducted by the Office of the Auditor General. Annual reports are published on the website.

Where to view statistics:

The website homepage displays “Live Data” such as number of contributors, number of employers, and total claims paid. This increases public trust in the institution.

Fraud Prevention

Warning: SSF never calls to ask for your password or OTP.

If you receive any suspicious call, verify through the official number (1151).

Submitting claims with fake bills is a legal offense and may result in permanent suspension of benefits.

Users’ Rights and Responsibilities

Rights:

• View account details at any time.

• Receive entitled benefits without unnecessary hassle.

• Seek legal remedies if dissatisfied.

Responsibilities:

• Provide accurate personal details.

• Inform the Fund when leaving or changing jobs (through the employer).

• Submit claims within the specified timelines.

Grievance Redressal Mechanism

The Fund has multiple channels for grievance management:

1. Online: “Grievance” tab on the website.

2. Telephone: Toll-free number 1151.

3. In-person: Central office at Babarmahal or designated branch offices.

Information to include when filing a grievance:

• Your SSF number.

• Clear description of the problem.

• Relevant supporting evidence.

Offices and Contact Points

The Fund is expanding services and is in the process of opening contact offices in all seven provinces and branch offices in major industrial corridors.

• Central office: Babarmahal, Kathmandu (near Babarmahal Revisited).

• Branch/contact points: Biratnagar, Simara, Butwal, Nepalgunj, Pokhara, and other major cities (for details, see the website).

Inter-Agency Linkages

SSF does not operate alone.

• Banks: For collecting contributions and making payments.

• Hospitals: For health service delivery.

• Company Registrar/Tax Office: For verifying employer details.

This “ecosystem” helps keep your money secure and processes transparent.

Frequently Asked Questions (FAQ)

When can I withdraw the money I deposited?

Those in the pension scheme receive pension after age 60. However, upon leaving a job or in special circumstances, some amount can be withdrawn according to rules under special loan or retirement schemes. Contributors before Ashad 2078 also have withdrawal options if they leave a job and remain unemployed for a certain period.

My spouse also has SSF. Can both of us claim medical benefits?

Yes. If both are contributors, both can claim benefits up to their respective limits (NPR 100,000 each). Claims can be made through either spouse’s account, but the same bill cannot be claimed from two accounts.

What happens if I go abroad?

A: If you are going for foreign employment, you can continue your Nepal account by joining SSF’s “Foreign Employment Scheme.”

Conclusion

The Social Security Fund is a transformational change in Nepal’s labour market. Although there were initial technical issues and confusion, the system is gradually maturing. It is not merely a place where money is deducted—it is a partner in your “savings and protection.”

If you are an employer, proudly enlist your employees—this reduces your legal liability and increases employee productivity. If you are a worker, demand social security as your right.

“Today’s contribution, tomorrow’s secure life.”

Disclaimer

This article has been prepared for informational purposes only. The legal provisions, interest rates, and benefit limits mentioned here may change based on amendments made by the Government of Nepal and the Social Security Fund from time to time. For official and updated information, always refer to the Fund’s official website (ssf.gov.np) or contact the relevant office. This is not legal advice.