Nepal has four different retirement and social security contribution systems — and confusion between them is extremely common. Your payslip shows deductions for SSF or CIT but most employees do not know what they are or where the money goes. This guide explains all four clearly.
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Try this free toolThe four Nepal retirement/social security systems
| Fund | Who it applies to | Employee % | Employer % |
|---|---|---|---|
| SSF (Social Security Fund) | Private sector employees | 11% of basic | 20% of basic |
| CIT (Citizen Investment Trust) | Government employees (optional for private) | 10% of basic | 10% of basic |
| GPF (General Provident Fund) | Permanent government employees | 10% of basic | No employer contribution |
| EPF (Employee Provident Fund) | Some organized private sector companies | Varies | Varies |
SSF — Social Security Fund
SSF is the main retirement and social protection system for private sector employees under the Contribution-Based Social Security Act 2017.
Employee contributes: 11% of basic salary monthly Employer contributes: 20% of basic salary (this is an additional cost to the employer, not taken from your salary)
What SSF covers
SSF provides four schemes:
- Medical treatment and health protection — hospitalization benefits
- Maternity protection — paid leave for mothers
- Accident and disability protection — compensation for workplace injuries
- Old age protection — monthly pension after 60 years old (if contributed for 15+ years)
How to access your SSF money
You can check your SSF balance at ssf.gov.np. You can withdraw contributions:
- At retirement (age 60)
- On permanent disability
- On death (family can claim)
- Not accessible before retirement under most conditions
CIT — Citizen Investment Trust
CIT is primarily a government employee retirement instrument, but private sector employees can also voluntarily contribute.
Employee contributes: 10% of basic salary Employer contributes: 10% matching (for government employees)
CIT vs SSF — key differences
| Factor | SSF | CIT |
|---|---|---|
| Primarily for | Private sector | Government sector |
| Employer contribution | 20% | 10% (govt) / 0% (private) |
| Investment return | Fixed government rate | Invested in capital markets — varies |
| Withdrawal flexibility | Limited | Can borrow against balance |
| Tax deductibility | Yes — full 11% deductible | Yes — up to रू 3,00,000/year |
CIT tax benefit
CIT contributions up to रू 3,00,000 per year are deductible from taxable income. If you are in the 30% tax bracket and contribute रू 3,00,000 to CIT, you save रू 90,000 in income tax.
GPF — General Provident Fund
GPF applies exclusively to permanent Nepal government employees (civil servants).
Employee contributes: 10% of basic salary No employer contribution — GPF is purely the employee's own savings held by the government
GPF features
- Government guarantees the principal and a fixed interest rate (currently around 8–9%)
- Balance grows with compound interest over the career
- Can be withdrawn in full upon retirement or resignation
- Partial withdrawal allowed for specific purposes (medical emergency, house purchase)
GPF is mandatory for permanent civil servants and is tracked by the Office of the Auditor General. Employees can check their GPF balance at the concerned ministry or department.
How these deductions affect your take-home salary
Example: Private sector employee with रू 60,000 basic salary on SSF
| Item | Monthly amount |
|---|---|
| Basic salary | रू 60,000 |
| SSF deduction (11%) | रू 6,600 |
| Income tax (TDS) | ~रू 4,500 (estimated) |
| Net take-home | ~रू 48,900 |
| Employer SSF (20% — not from your salary) | रू 12,000 |
Example: Government employee with रू 60,000 basic salary with GPF + CIT
| Item | Monthly amount |
|---|---|
| Basic salary + allowances | ~रू 85,000 |
| GPF deduction (10% of basic) | रू 6,000 |
| CIT deduction (10% of basic) | रू 6,000 |
| Income tax (TDS) | ~रू 5,000 |
| Net take-home | ~रू 68,000 |
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