Your SSF now covers your kids too! Learn how Nepal’s Social Security Fund works, what you can withdraw, and the benefits most people don’t know about!

As of the new year 2082 BS, Nepal’s Social Security Fund (SSF) just became more family-friendly. That’s right. Your children are now covered under your SSF health plan.

Until now, healthcare benefits under SSF were limited to contributors and their spouses. But with the latest update to section 4 of the Social Security Procedure, effective from Baisakh 2082, children under the age of 18 can also receive medical and medicinal coverage under the plan.

This is a game-changer for working parents. It means that your monthly SSF contribution doesn’t just protect your future, it safeguards your kids too.

And this is just one of many reasons why SSF deserves a closer look.

If you’ve ever wondered:

• “Where is my SSF money going?”
• “Can I take it out before retirement?”
• “Is it worth it compared to saving in a fixed deposit?”
• “What benefits do I really get?”

This guide breaks it all down from how the fund works, what you can withdraw, what you can't, and how SSF can actually offer more protection than any bank account or FD ever could.

Let’s start at the beginning.

What is SSF?

SSF, short for Social Security Fund, is a government-backed scheme designed to protect workers in Nepal from various life risks such as illness, accidents, maternity, retirement, and more by providing them with financial coverage and support.

Think of it as a savings and insurance combo managed by the government. You contribute a portion of your salary every month, and in return, you and your family get access to various financial benefits.

Started in 2076 BS, the fund is managed under the Contribution-Based Social Security Act 2074 and is governed by the Ministry of Labor, Employment and Social Security. It covers employees in the formal, informal, foreign employment, and now, even government-contract sectors.

Why Does SSF Matter?

Most Nepalis have little to no safety net. If you fall sick, lose your job, or retire, you're often on your own. That’s where the SSF comes in. It’s a step toward a more secure future, where you can count on financial support when life doesn’t go as planned.

With SSF, you're not just paying for the future, you’re unlocking benefits even while you’re still working.

SSF Contribution Structure & Payments

One of the most confusing parts about SSF is how the contributions work. Let’s simplify it:

How Much Do Employers and Employees Contribute?

Every month, both employees and employers contribute a percentage of the employee's basic salary to the SSF. Here’s the breakdown:

Employers deduct the 11% from your salary and deposit it, along with their 20%, to the SSF every month.

What Benefits Do You Get from SSF?

SSF is more than just a retirement plan. Here are the four main schemes you benefit from:

Medical Treatment, Health, and Maternity Plan

• Covers your medical bills
• Offers maternity benefits
• Now extended to spouses and children up to age 18 (as of 2082 BS)
• If you’ve contributed for 5 years, up to NPR 10 lakh in hospital treatment, 50% of which is borne by the government

Accidental and Disability Protection Plan

• If you get injured while working or suffer from a disability due to job-related incidents, this plan offers up to NPR 1.2 million in medical and rehabilitation coverage.
• In case of permanent disability, additional compensation is provided based on severity.

Dependent Family Protection Plan

• If a contributor dies, the surviving spouse receives 40% of the eligible pension amount as a monthly allowance.
• Children under 18 are also eligible for benefits until they reach adulthood.

Retirement Plan (Pension + Gratuity)

• Pension: You get 60% of your average salary as a monthly pension if you’ve contributed for at least 15 years and reach the age of 60.
• Gratuity: This is a one-time lump sum amount equal to 8.33% of your salary for the entire period you worked and contributed.
  • You can claim gratuity as soon as you resign or leave your job, regardless of your age or years of service.

So even if you don’t qualify for a pension yet, you’re still entitled to gratuity when you leave your job, a common misconception many employees don’t realize.

Want to read about the benefits of SSF in detail? Head to our blog post ‘Nepal’s Social Security Fund (SSF): Registration, Contribution & Benefits Explained (2025)’

The Big Misconception: "You Can Only Get Your Money After Age 60"

This is partially true, but not the full story. Let’s break it down:

What Portion Can You Withdraw?

Of the total 31% contribution, only 28.33% is technically “yours” and eligible for withdrawal:

• 20% (Pension Fund) – You get this after turning 60 or contributing for 15 consecutive years
• 8.33% (Gratuity) – You can withdraw this when you resign or leave your job

The remaining 2.67% covers your health, maternity, accident, and other insurance benefits. This amount is non-withdrawable, but you get its value through the services offered (like insurance claims, health coverage, etc.).

Can You Withdraw SSF When You Move Abroad?

This is a common question. Here's the simple answer:

• If you're moving abroad for studies or temporary foreign employment, you can only withdraw your 8.33% gratuity.
• You cannot withdraw your 20% pension fund unless:
  • You turn 60, or
  • You have contributed for 15 years, or
  • You renounce Nepali citizenship and take foreign citizenship, in which case the entire 28.33% can be withdrawn as a lump sum.

So no, SSF is not a trap. It’s a long-term savings and protection plan. You just need to understand the timelines.

Want to understand how withdrawal rules under SSF differ from older systems like EPF and in-house gratuity funds? This guide explains it with real workplace examples.

Why Not Just Put My Money in a Fixed Deposit Instead?

A question many people ask is:

“Why should I put money into SSF when I can just save it in a fixed deposit or bank account? At least that way, I have full control.”

At first glance, it makes perfect sense, especially when you hear that SSF’s interest rate for FY 2081/82 is just 5.5%. That’s barely keeping up with most fixed deposits.

So why not just stash your money in an FD and call it a day?

But when you dig deeper, you’ll find that SSF isn’t just about returns, it’s about protection, insurance, and long-term security that FDs simply don’t provide. 

Here’s why:

1. Fixed Deposits Only Save. SSF Protects.

A Fixed Deposit (FD) gives you interest on your savings. That’s it.

But SSF? It does way more than just store your money. It gives you:

• Health insurance worth up to NPR 10,00,000 per year for you, your spouse, and now even your children under 18
• Maternity allowance and hospital coverage when you or your spouse give birth
• Accident and disability coverage up to NPR 1.2 million
• Monthly pension after age 60 
• Gratuity payout when you leave your job
• Family protection benefits if anything happens to you
• Unemployment protection (in some cases where layoffs are covered)

A regular savings account or FD does none of this. It just gives you an annual return, without insurance, protection, or retirement security.

2. SSF Contributions Come With Employer Match

For every 11% you contribute, your employer adds 20%. That’s free money being added to your future.

Would a bank ever give you a 20% bonus on your FD every month?

Of course not.

3. It’s Not Locked Forever, You Can Still Access Part of It

Unlike a pension-only fund, SSF gives you access to your 8.33% gratuity the moment you resign or leave your job.

So even if you don’t stay till retirement, you don’t lose everything. Plus, you’ve already used health coverage and other benefits during your tenure, so you’re not left empty-handed.

4. SSF is Not Just Saving. It’s Social Security.

The idea behind SSF isn’t just to grow your money. It’s to protect your life, from pregnancy to disability to retirement.

FDs and bank savings are passive. You’re on your own if you get sick, injured, or unemployed.

But SSF is like a government-backed friend that shows up when you need it most.

So before you dismiss it, ask yourself:

“Can my FD pay my hospital bills?”
“Will my bank give my family money if something happens to me?”
“Can my savings account replace my income after retirement?”

No?

That’s why SSF is not just another savings scheme. It’s your backup plan, protection net, and future income, all in one.

And the good news?

It’s getting even better.

New Updates You Should Know (Effective 2082 BS)

Health Coverage for Children

Children of contributors up to the age of 18 are now eligible for medical benefits under SSF.

This is a major step forward in ensuring family health coverage and is part of the government’s universal health coverage strategy.

Government-Linked Contract Employees Can Now Join

As of 1st Baisakh 2082 BS, the Ministry of Labor has allowed non-pensionable employees from:

• Local governments
• Provincial governments
• Government-owned institutions, boards, and authorities

to join SSF. The rule says:

60% of their salary will be considered “basic pay,” and the employer contributes 20%, while the employee contributes 11%.

This is not mandatory yet but is being offered as an option for those organizations that can afford it.

Contribution-Based System for Everyone

The long-term vision is to shift from allowance-based social support (like old-age allowance) to a contribution-based system, where every worker, formal or informal, secures their own benefits through regular savings and participation.

Who Can Join the SSF?

The fund now covers:

So yes, even self-employed workers, freelancers, and entrepreneurs can join!

How Much Money is Involved?

As of mid-Chaitra 2081:

• 2.15 million contributors have joined SSF
• 77.67 billion rupees have been deposited
• 13.92 billion rupees have been paid in claims, including:
  • 1.86 billion for medical/maternity
  • 1.82 billion for accident/disability
  • 11.65 billion for retirement benefits

This shows that people are actually using the fund, and it’s not just sitting idle.

How to Join SSF?

If you're employed, your employer must register you. If you’re self-employed, you can:

• Visit ssf.gov.np
• Register as an individual contributor
• Start contributing monthly via bank deposit or online platforms

Need a step-by-step walkthrough for SSF registration as an employee, employer, or self-employed professional?

This complete SSF registration guide by Khatapana has everything from documents needed to contribution examples.

Challenges and Realities: Why SSF Still Feels Confusing for Many

While the Social Security Fund (SSF) has grown rapidly over the last six years, covering millions of workers and collecting billions in contributions, it’s far from perfect.

Here are some of the key challenges that still hold the system back from reaching its full potential:

Low Awareness and Misconceptions

Most employees and even employers don’t fully understand what SSF is, how it works, or what benefits they’re entitled to.

• Many still believe that SSF is only for retirement, and they can only withdraw money after turning 60, not knowing about gratuity withdrawals, health coverage, or disability benefits.
• Others think that the fund eats into their salary with no tangible returns, especially if they switch jobs or move abroad.

“SSF ma haleko paisa feri kati bela niskinchha ta?” is still one of the most common questions people ask.

This lack of clarity discourages people from engaging seriously with the fund and leads to underutilization of the benefits they’re already entitled to.

Many HR teams still rely on outdated assumptions and ignore the monthly accrual system that the Labour Act now enforces.

This article on PF, gratuity, and SSF explains what most HR departments are still getting wrong; a must-read if you're in charge of payroll or compliance.

Complex Rules and Poor Communication

SSF’s rules, especially regarding contributions, eligibility, claim filing, and withdrawal can feel overly technical and bureaucratic.

• Terms like “pension fund,” “gratuity,” and “contributory coverage” are rarely explained in simple language.
• Official notices are often released in Gazette format, written in legalese, and hard to digest for everyday workers.
• Many employers do not brief their employees properly during onboarding or salary discussions, and HR departments often skip explaining how SSF contributions work.

This leads to mistrust and confusion, and in some cases, employees don’t even know they are being registered under SSF until they see deductions on their payslip.

Delays in Claims and Service Gaps

• Medical reimbursement claims can take weeks or months to process, especially when documentation is incomplete or delayed by the hospital.
• Some contributors report issues like:
  • Slow portal response
  • Incomplete online forms
  • Difficulty in tracking claim status
  • Lack of customer service response

While SSF has made progress in launching an online portal and call centers, user experience still lags behind, especially for less tech-savvy users.

Uneven Employer Participation

Although SSF is mandatory for formal sector workers, many small businesses and contractors still do not register their employees properly.

Some issues include:

• Employers deduct the 11% from employees’ salaries but fail to deposit the matching 20% on time
• No proper orientation or SSF registration in informal jobs or project-based work
• Deliberate avoidance by some companies, citing cost burdens

This results in gaps in contributions and loss of benefits, especially for workers who switch jobs frequently.

Difficulties for Foreign Employment Workers

While over 1.5 million SSF contributors are people who have gone abroad for work, many don’t continue contributing after reaching their destination, even though it’s mandatory when applying for a labor permit.

Why?

• No clear system for continued contributions while abroad
• Workers assume they can’t withdraw their funds if they don’t return
• Lack of awareness about foreign employment scheme benefits

This leads to dead accounts and wasted contributions, and defeats the purpose of long-term financial security.

Institutional & Government Coordination Issues

• Some local and provincial governments are still unsure about how to join SSF or contribute for their contract staff
• Public corporations and semi-government bodies often lack clear instructions on what to do for non-pensionable employees
• Policy decisions (like the new 2082 BS update) take time to reach the field level due to bureaucratic delays

This slows down the rollout of potentially impactful reforms.

So, Is There Hope?

Yes.

Despite these challenges, the Social Security Fund is evolving. In recent years, we’ve seen:

• Expanded coverage (including informal sector, foreign workers, and now children)
• New healthcare benefits and hospital support
• Opening up of SSF to local-level contract staff
• Efforts to move toward universal, contribution-based social protection

With the right reforms in digital access, communication, and policy enforcement, SSF can become the backbone of Nepal’s long-term welfare system.

But the most important thing SSF needs right now?

Public trust and understanding.

And that begins with clarity, simplicity, and support.

Final Thoughts: Should You Join the SSF?

If you’re working in Nepal or planning to, SSF is not just a government formality. It’s your safety net. A fallback. A way to protect your future, and your family’s.

Yes, you can’t withdraw all of it instantly. But you’re not supposed to. Like any good savings or insurance plan, it’s there for when life hits hard.

And now, with children’s coverage, higher hospital benefits, and pension plans, SSF is becoming more useful than ever before.

So next time someone says, “Yo SSF ta paisa fasaune khel matra ho,” you’ll know what to say.

Have questions about SSF? Drop them in the comments. We’ll help you figure it out!

Want to take action? Check out Khatapana’s 2025 SSF guide to register, calculate your contribution, and start making the most of your benefits.

Additional Resources:

• Tax Rate in Nepal: A Comprehensive Guide to Tax Slabs, Deductions, and Tax Calculator Tools 
• 10 Ways to Earn Money Online in Nepal Without Investment (2025) 
• Salary and Tax Calculator in Nepal: Simplifying Your Financial Planning 
• The Complete & Full Guide on Starting a Business in Nepal