Ministry of Labour, Employment and Social Security Urges Unregistered Employers and Workers to Enrol with the Social Security Fund

Employers and workers who have not yet enrolled with the Social Security Fund (SSF) are urged to do so without delay, as required under the Labour Act, 2074 (2017) and the Contribution-Based Social Security Act, 2074 (2017).

Introduction

The Ministry of Labour, Employment and Social Security, Government of Nepal, has issued a notice urging all employers and workers who have not yet enrolled with the Social Security Fund (SSF) to complete their enrolment at the earliest.

The notice recalls that under Section 52(2) and Section 53(2) of the Labour Act, 2074 (2017), employers are legally required to deposit provident fund and gratuity contributions of workers into the SSF. Pursuant to Section 19 of the Contribution-Based Social Security Act, 2074 (2017), a gazette notification was published on 2076/07/26 (12 November 2019) requiring workers in sectors covered by the Labour Act to enroll with the SSF. 

A further gazette notification was published on 2082/01/01 (14 April 2025) specifically requiring institutions, corporations, boards, authorities, and other similar bodies under full or partial ownership of the Federal Government, Provincial Governments, or Local Governments to enrol with the SSF. Despite these notifications, a number of establishments and bodies in the said sectors have still not completed their enrolment, prompting the Ministry to issue this notice.

Practical Implications

1. Legal Obligation to Enroll with the SSF

Enrolment with the SSF is not discretionary, it is a statutory requirement under the Labour Act, 2074 (2017) and the Contribution-Based Social Security Act, 2074 (2017). Employers operating in sectors covered by the Labour Act, as well as government-owned or partially government-owned entities, are legally obliged to enroll and make the prescribed contributions on behalf of their workers.

2. Obligation to Deposit Provident Fund and Gratuity

Employers who have been maintaining separate provident fund or gratuity arrangements outside the SSF must transition these contributions to the SSF in accordance with the applicable legal provisions. Continued non-compliance with this requirement constitutes a breach of the Labour Act, 2074 (2017).

All concerned employers and establishments are strongly advised to complete their SSF enrolment promptly and ensure that ongoing contributions are deposited in accordance with the prescribed timelines and procedures.