Income Tax & Social Security (SSF) Guide 2081/82: Salary, Pension & Withdrawal Rules
How much tax do you pay on your salary? Can you withdraw your SSF money before age 60? We explain the 2081/82 tax slabs, the difference between EPF and SSF, and why your Dashain allowance is taxed.
The “Take Home” Salary Confusion
You negotiated a salary of NPR 50,000, but your bank account only shows NPR 42,000. Where did the money go? Between Income Tax (TDS) and the Social Security Fund (SSF), understanding your paycheck in Nepal has become complicated.
This guide clarifies the 2081/82 (2025) tax rules and the burning question: When can I get my money back?
1. Income Tax Slabs for 2081/82 (2025)
Nepal follows a progressive tax system. The more you earn, the higher percentage you pay.
A. For Unmarried Individuals
| Annual Income | Tax Rate | Meaning |
|---|---|---|
| First NPR 5,00,000 | 1% | Social Security Tax (Not applicable if in SSF) |
| Next NPR 2,00,000 | 10% | On income between 5L and 7L |
| Next NPR 3,00,000 | 20% | On income between 7L and 10L |
| Next NPR 10,00,000 | 30% | On income between 10L and 20L |
| Above NPR 20,00,000 | 36% | High earner surcharge |
B. For Married Couples (Assessed Jointly)
| Annual Income | Tax Rate |
|---|---|
| First NPR 6,00,000 | 1% |
| Next NPR 2,00,000 | 10% |
| Next NPR 3,00,000 | 20% |
| Next NPR 9,00,000 | 30% |
| Above NPR 20,00,000 | 36% |
Crucial Note: The Dashain (Festival) Allowance is NOT tax-free. It is added to your total annual income and taxed at the highest applicable slab.
2. EPF vs. SSF: The Great Debate
Most private companies have shifted from the Employees Provident Fund (EPF/Karmachari Sanchaya Kosh) to the Social Security Fund (SSF). They are NOT the same.
| Feature | EPF (Old System) | SSF (New System) |
|---|---|---|
| Contribution | 10% Employee + 10% Employer | 11% Employee + 20% Employer (31% Total) |
| Withdrawal | Flexible (Can withdraw 75% loan easily) | Strict |
| Medical | Limited Benefits | Full Medical/Accident Insurance included |
| Pension | Lump Sum on Retirement | Monthly Pension (Life-long) |
3. The SSF Withdrawal Trap (Read Carefully)
Many employees are angry about SSF rules. Here is why:
The “Pension” Lock-in
Your 31% contribution is split into different pots.
- Gratuity/Retirement Pot (28.33%): You CAN withdraw this when you resign/leave your job.
- Pension Pot: If you enrolled after July 2021, you CANNOT withdraw the pension portion as a lump sum until you turn 60 years old.
Exception: If you started SSF before July 2021, you might still be eligible to withdraw the full amount as a lump sum upon resignation. Check your enrollment date!
Q: Can I take a loan against SSF? Yes, after 3 years of contribution, you can take a special loan (up to varying limits), but it is not as simple as the old EPF loan.
4. Tax-Saving Hacks for 2025
How to legally pay less tax?
- Life Insurance: Deduction up to NPR 40,000.
- Medical Insurance: Deduction up to NPR 20,000.
- Retirement Fund (SSF/EPF): Contributions up to NPR 5 Lakhs (or 1/3rd of income) are deductible.
- Remote Area: If you work in Karnali or remote zones, you get huge tax rebates.
Conclusion
If you are young, the SSF is excellent for long-term safety (insurance + pension). If you want quick cash in hand, it feels restrictive.
- Tip: Always ask for your “SSF Login” from HR to check if they are actually depositing your 31%.
Disclaimer: Tax laws change every Budget Speech in (May/June). Consult a Registered Auditor for filing.
Important Note
This article provides general information and should not be considered as specific legal advice. Always consult with a qualified attorney for your particular situation.
Praveen Shrestha
Senior Legal Advisor with expertise in corporate law and legal consultation.