SSF Filing Due Dates in Nepal: A Complete 2083/84 Compliance Calendar
Payroll month closings often determine whether you have a painless or a headache month, but they are determined by the SSF Filing Due Dates. The Social Security Fund is a regular deduction for a lot of Nepali employers. Then a few days later there’s a deadline and people begin to get interested. The working of theSocial Security Fund Nepal is on a monthly basis. All enrolled employers must deduct the employee’s share, and make a contribution of their own, and then deposit both of these amounts. The whole contribution is 31% Basic salary. 11 percent of the employees’ contributions are matched by 20 percent from the employer. The window of each deposit is also fixed with an end of Nepali month counter.
The rules have undergone a recent change so it is not uncommon to find some confusion. Older articles continue to refer to the 15-day window for when SSF contributions were due. Such a change was reportedly made in the Contribution-based Social Security Act, with an extension of the deadline to 25 days in 2082. HR teams that use dated notes may find themselves planning on the wrong date. Some pay on time and nothing is lost. Others overpay late fees charges they could avoid. This article outlines the monthly deposit cycle, the associated tax dates and penalties for a missed deposit. Also demonstrates how to create a basic SSF Compliance Calendar for the entire fiscal year. A well organized calendar is important to both small businesses and large businesses, keeping both your employees and your reputation safe and helping to keep your business licence.
How the Monthly SSF Contribution Cycle Works
Payroll is the first of a series of cycles. The contribution is based on an employee’s basic salary, not gross salary, determined by employers. The salary is deducted by 11 per cent. of the employee. The employer is responsible for paying 20 percent also. It’s one deposit that goes to theSocial Security Fund for the combined 31 percent.
Money is deposited via the employer account on the SSF portal – sosys.ssf.gov.np – generally via bank deposit or Connect IPS. Retain the deposit voucher on your payroll records. It becomes your proof in case a question occurs in the future.
Where an employee is working part of a month the contribution is worked out on a pro-rata basis. This is relevant to those who join and leave the staff mid-month. This is a minor detail often overlooked which can lead to errors in reconciliation.
Monthly SSF Filing Due Dates: A Month-by-Month Calendar
Please refer to the table below to find out when the contribution for each month comes due. The first column indicates the month of earning a salary, in nepali calendar. The second column is the usual “15th of the next month” date. The third column is outside the box in the longer, extended 25 day window.
Salary Month | Traditional Date (15th) | Outer Limit (25th) |
Baisakh | 15 Jestha | 25 Jestha |
Jestha | 15 Ashadh | 25 Ashadh |
Ashadh | 15 Shrawan | 25 Shrawan |
Shrawan | 15 Bhadra | 25 Bhadra |
Bhadra | 15 Ashwin | 25 Ashwin |
Ashwin | 15 Kartik | 25 Kartik |
Kartik | 15 Mangsir | 25 Mangsir |
Mangsir | 15 Poush | 25 Poush |
Poush | 15 Magh | 25 Magh |
Magh | 15 Falgun | 25 Falgun |
Falgun | 15 Chaitra | 25 Chaitra |
Chaitra | 15 Baisakh | 25 Baisakh |
The months vary in length in Nepali calendar: 29 to 32 days. This is because dates don’t refer to a set number of calendar days, but rather to the name of the month. It is always reckoned from the day of the last month of the Nepali month and not theGregorian date.
The law used to provide employers with 15 days from the end of the month. As per the Act to Amend Some Nepal Acts published in Nepal Gazette on 2082/04/14, this was increased to 25 days. There are still many web sites and training notes that haven’t yet caught up. That’s why there are two dates around in the market.
As far as practical, the best way is a hybrid. Set the 15th as a personal goal. Consider the 25th to be the official deadline. This allows you to account for 10 days for the bank delay, portal downtime and approval delays. Please check the current date on the SSF portal or an official notice before finalising your calendar. Payroll rules are subject to rapid change.
Related Deadlines to Track Alongside SSF
SSF is just one of the pieces to the payroll compliance puzzle. Thetax on salary is paid in the same flow. The employers withhold TDS from the salary and pay it to the Inland Revenue Department. This is usually filed within 25 days of the end of the month in Nepali calendar, and usually it is filed electronically.
New Employees get their own clock. It is expected that employers will start new employees with the fund within three months of their employment. Contributions should be based on the first month of work, however. No one is responsible for the delay if someone holds back on enrolling.
An annual angle is there as well. Reports suggest that there will be a check of SSF compliance from FY 2082/83 at the time of renewal of business registration. This can mean that you won’t be subjected to delays when it’s time for renewal if your contribution record is clean.
Penalties for Missing SSF Filing Due Dates
There’s more than a financial penalty for late payments. The Act allows for interest of 10% on not timely deposits of contributions. An employer may apply to the fund, and report on the situation where the circumstances are out of their control. In this situation, the fund can grant you the full or part relief, but it is not a given.
There have also been expanded powers of enforcement. The recent amendment broadened the powers of the fund to take action against the employers who do not deposit and/or do not enlist employees. These may range from freezing bank accounts and property, to the cancellation of a licence. Penalties for non-compliance or false information are also up to NPR 100,000; imprisonment up to one year; or both.
Staff are also covered. Without contributions, employees might not receive benefits like a pension credit, accident coverage and medical insurance. It’s a very serious matter of trust in any company. One absence can easily escalate into something more than a financial issue, it’s a morale issue.
Establish a trustworthy SSF Compliance Calendar
The key steps in a good calendar are to own it, and then you can play with it. Choose a person who will be responsible for making the monthly deposit, either from HR or the finance team. Assign alternate teacher(s) for when you are away. It is human nature to let deadlines expire if there’s no named owner.
Then, link the deposit with thepayroll. A large number of employers make the SSF payment on the same day as their salary is paid. This makes it easier to avoid having to keep track of a separate date. This also helps to keep the numbers current and minimises the reconciliation process.
For each month in the Nepali month, set reminders for the 10th and 12th. These early warnings will allow you time to correct errors before deadlines. Take SSF Filing Due Dates seriously as if it were salary day. If staff are aware that contributions will never be late then trust is built up in the system.
Last but not least, reconcile monthly. Check the payroll register with the amount of deposits. Review new hires, terminations and promotions. It’s much more cost-effective to do a short review every month than to have to clean it up at the end of the year. Payroll software likeHajir HRM can automate calculating the dates and marking them up, thereby reducing manual work for larger teams.
Mistakes that Lead to Late Payment
The most common mistake is to calculate using gross pay rather than basic salary. This updates the contribution amount and will make a disparity with the SSF records. A common problem is that it’s not always possible to find a new joiner in the monthly list. The fund is willing to receive payments from the first month of work.
Some employers also neglect to remember that holidays and weekends don’t suspend the deadline. In the event of the 25th being a public holiday, banks might be closed. Don’t wait until the last few days to pay to prevent risk. Finally, there are still certain companies that make use of verbal reminders. It’s always better to have a written calendar with a clearly designated “owner”.
Frequently Asked Questions (FAQ)
The contributions by the employers are to be made on a monthly basis after the end of each Nepali month. The older window was 15 days. There is a report that it was extended to 25 days in a 2082 amendment. Check with the SSF portal for the current date prior to confirming your Calendar.
This is a total of 31 per cent of basic salary. Employers pay 20% and employees pay 11%. Both the shares are put into the same bank.
Interest may be charged for late payments at a rate of 10 percent by the fund. Serious cases will also allow for wider enforcement actions. If delays were outside their control, the employers can apply for relief.
The contributions are made via the SSF Employer portal workflow. Typically, payment is by bank deposit or via Connect IPS. Retain all the vouchers.
Basic Salary is used for the calculation of SSF. Usually do not include allowances. Verify your appointment notices, to ensure that the basic figure is clear and consistent.
It is expected that employers should enroll new employees within 3 months. The first month of the job should be counted as the first month of the contribution. There is no exemption for late enrolment.