Nepal’s government now requires SSF enrollment for all new public employees, replacing the old pension system. Learn how the system works and what changes for you.

From mid-July 2025, if you’re starting a government job; whether at a ministry, a public office, or a regulatory body, your retirement won’t come with the old-school, state-funded lifelong pension.

Instead, you’ll be part of the Social Security Fund (SSF), a system where you and the government both chip in every month to build your retirement savings over time.

Instead of a fixed pension funded by the government, your future income will now depend on how much you and the state contribute every month, and how well the Social Security Fund performs over time.

That seems to have triggered all kinds of chatter. “No more pension for new government employees!” “The government is trying to cut costs at the expense of future public servants”

Let’s pause right there. 

Pensions aren’t going anywhere. You’ll still get one. It just comes from a new system, with a new name, new math, and possibly a better deal overall.

So what’s different now? Let’s walk through how it works.

What’s Actually Changed?

The pension scheme remains the same for existing government employees. This change only affects those who join in after Asadh 15, 2082.

So, what does this mean if you’re applying for a government job today?

The key difference now, is that instead of getting a pension directly from the government budget, your retirement income will come from your SSF account.

Here’s how it works:

• Every month, you contribute 11% of your basic salary.
• The government adds 20% on top of that.
• That’s 31% of your salary going into a fund for your future.

But under the old system?

• You had to put aside 6%, the government chipped in 6%, and the pension came from a general fund.
• Total contribution was just 12%.

So no, this isn’t the government pulling back. It’s actually putting in more. Twice as much than before.

And as for the “lifelong pension payments”? You’ll still get a monthly pension for life if you contribute to SSF for at least 15 years. So yes, it’s a pension. It just doesn’t come with the same old packaging.

Plus, this shift also ends a debate that’s been simmering for years.

Private vs Public: The Debate is Finally Over

If you’ve worked in the private sector, you’ve probably had this thought before:

“Why do I have to contribute to SSF every month while government staff get pensions without it?”

That question’s been floating around since 2018, when SSF was made mandatory for private companies and their employees. Every month, people working in banks, schools, hospitals, and offices were deducting 11% from their paycheck for SSF. 

Meanwhile, civil servants didn’t have to bother. Their pensions were already guaranteed.

That looks pretty unfair, no?

One group had to save and invest; the other got a retirement fund without lifting a finger. Naturally, many private employees weren’t thrilled. This led to a lot of them resisting the system as well. 

But we fail to realize that public employees weren’t getting pensions for free. Under the Pension Fund Act 2075, they were also contributing to their pensions (6% from their salary, with the government matching it). 

It just wasn’t called SSF, and it wasn’t structured the same way.

Now that public employees are shifting to SSF, the rules are now the same for everyone. Whether you work in a school, bank, or government office, you follow the same system. That tension between the private and public sector? It’s finally getting resolved.

But beyond fairness, there’s something else worth noticing: SSF might actually offer more than the old pension ever did.

Why This New Scheme Might Be Better

Most of us think about pensions as something far-off. Something you get to enjoy only after you turn 60. But when life throws a curveball, you want more than just a retirement plan, something that can financially vouch for you when required, not just after retirement. 

And that’s where SSF steps in.

 The schemes offered under it are:

• Old Age Protection: This is your pension. Contribute for 15+ years, and you’ll get monthly payouts for life after retirement.
• Medical Treatment Scheme: Covers your hospital bills and treatments when things go wrong.
• Maternity and Health Benefits: Especially useful for working parents and families.
• Accident and Disability Support: Because accidents don’t come with a warning.
• Dependent Family Protection: If something happens to you, your family doesn’t have to struggle alone.

And remember, it’s not just your salary that’s going in, the government is adding more than ever before. This means if you start early and stay consistent, your SSF account could grow into something really meaningful by the time you retire.

So the bottom line is: The system hasn’t taken away pensions for government employees. It’s just restructured to be more future-proof.

What Pushed The Government to Act?

The government could see the pressure building. Rather than waiting for the system to snap, it leaned into something it had already committed to years ago for the private sector: SSF. A scheme that’s not just structured and trackable, but also has a better shot at delivering solid returns over time than the traditional pension model ever did. Here’s why making the shift wasn’t just smart, it was necessary:

1. The Fiscal Burden Was Becoming Unsustainable

In FY 2013/14, the pension bill stood at Rs. 22 billion. By 2017/18, it had jumped to Rs. 40.1 billion. Now? It’s blown past Rs. 100 billion a year, just to keep up with the monthly payouts.

That’s a massive and growing chunk of the national budget, year after year. When you stack that up against SSF, a system where contributions are pooled, tracked, and actually have the potential to grow over time, the shift starts to feel less like a gamble and more like a calculated move. The government wasn’t just trying to plug a leak. It was betting on a system that might actually float.

2. The Math Was Starting to Break

Let’s take FY 2022/23. The government had planned for Rs. 52 billion in pension payments. But when the numbers came in? The bill was Rs. 77 billion.

That’s a Rs. 25 billion shortfall. The Pension Management Office had to scramble to cover it mid-year. Turns out there was no rainy-day fund. Just a gap that had to be plugged immediately.

You can only do that for so long before something gives. SSF, in contrast, is built to grow with time. It’s designed around contributions, accountability, and compounding. It gives both the state and employees a chance to breathe.

3. The Country Is Getting Older, Fast

Back in 2011, 8.1% of Nepal’s population was aged 60 or older. By 2021, that had already climbed to 10.2%. And it’s not slowing down. The elderly population is growing by 3.29% every year, more than twice the national rate.

By 2054 BS, Nepal will officially be classified as an "aging society." More seniors. More people are retiring. And more years of pension payouts for each individual.

Already, over 283,000 people receive pensions. Every year, about 18,000 more join the list. And as life expectancy rises, the cost of supporting these retirees grows too.

Put that all together, and the choice becomes clearer: stick with a system that can’t keep up, or shift to one like SSF that actually plans for what’s coming.

But Is SSF Ready for the Spotlight?

Let’s be fully honest here. SSF hasn’t had the smoothest journey so far.

Most of its current formal contributors (About 75%) are from Bagmati Province. Provinces like Karnali and Far-West barely have 3,000 contributors each. Even in major regions like Madhesh and Koshi, participation is far lower than expected.

Then there’s the self-employed: freelancers, shopkeepers, tutors, barbers, you name it. Out of the thousands who could’ve signed up, only 404 have. That’s across the entire country.

So why hasn’t it clicked yet?

Well, one reason is enforcement. The only place where SSF really works is in foreign employment. This is only because if you’re not enrolled, you don’t get your labor permit. Simple. It's that clarity and consequence that made adoption work.

Another reason is trust. For those already enrolled, SSF offers a 5.5% annual return, which, frankly, is lower than what most fixed deposits offer. So naturally, people wonder: why lock up part of your salary into something that feels less rewarding?

Then there’s the myth that once your money goes into SSF, it’s untouchable until you’re 60. That it just disappears into some black hole, never to be seen again. And that kind of thinking makes people feel like they’re losing control over their own income.

Truth be told, you do have access to benefits along the way, like medical coverage, maternity care, and support in case of accidents. But the misinformation floating around has damaged the public perception. And if SSF wants to win over skeptics, it’ll need to clear up these doubts fast.

Now, with government employees entering the system, SSF is the main stage.

And the Ministry of Finance has already drawn the line as well. They’ve clearly said that if government offices fail to enroll their staff properly, the ministry won’t cover the gap. No safety net. No bailout.

So, the question now is whether SSF can deliver on its promises, and finally build the kind of confidence people need to feel safe investing in their own future.

What About the Emotional Side of All This?

Let’s not sugarcoat it: This shift will still feel like a loss for many.

Because the SSF system might be more structured, and maybe even more generous over time, but it doesn’t feel that way yet.

It’s new. It’s technical. It’s a bit more complicated, and it doesn’t yet have the emotional reassurance that the old pension system carried.

And for many, it can feel like things are moving in the wrong direction. Especially when the narrative online is filled with headlines like “pension being cut off” or “SSF locks your money until you turn 60.” These stories create more fear than facts, and leave people unsure about what to believe.

So, the biggest risk of this shift is less in the math and so much more in how this feels to people.

Will employees feel secure enough to commit long-term to government service?

Will this new system inspire confidence, or will it just create more confusion?

Final Thoughts

The old pension setup had reached its limits. Costs were ballooning, the gap between private and public workers kept growing, and the system wasn’t built to handle the future.

Now, for the first time, everyone’s in the same boat. Whether you work for a ministry or a private firm, the rules are the same. You contribute, your employer contributes, and your future is tied to a shared system. That finally puts an end to a long-standing divide, and brings a sense of fairness that was missing for far too long.

Still, fixing the structure is just the first step. The real test is whether SSF can earn people’s trust. That means benefits that actually show up when you need them. A system that feels accessible, not buried in red tape. And clear communication, so people stop relying on half-truths and rumors to figure out their own future.

SSF doesn’t need to be perfect. But it does need to be reliable. If it can show that it works, not just in theory, but in people’s lives, it might just become the thing it’s trying to replace: something people can count on.

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