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Salary, SSF and festival allowance
What goes to the Social Security Fund each month, what you take home before tax and your festival allowance
Details
Employee [YOUR NAME]
Position [YOUR POSITION]
Employer [EMPLOYER NAME]
Scheme [SSF / NOT YET IN SSF]
SSF number [SSF CONTRIBUTOR ID]
Each month
Line Amount
Basic remuneration Rs. [AMOUNT]
Other allowances Rs. [AMOUNT]
Deducted from your pay (11% / 10%) Rs. [AMOUNT]
Paid by the employer on top (20% / 18.33%) Rs. [AMOUNT]
Into your own retirement account (28.33%) Rs. [AMOUNT]
Social insurance, SSF only (2.67%) Rs. [AMOUNT]
Pay before income tax (TDS) Rs. [AMOUNT]
Each year
Line Amount
Into your retirement account (12 months) Rs. [AMOUNT]
Months worked by the festival payment day [MONTHS]
Festival allowance Rs. [AMOUNT]
What the law says
Festival allowance: one month's basic remuneration every year, paid at Dashain unless you ask in writing for your own main festival; under a year of service, in proportion (Labour Act 2074, s. 37).
Provident fund: the employer deducts 10% of basic pay and adds the same amount (s. 52). Gratuity: 8.33% of basic pay every month (s. 53).
Both go to the Social Security Fund in your name; an employer in the SSF scheme pays the SSF contribution instead (s. 57).
SSF contribution: 31% of basic remuneration — 11% from you, 20% from the employer. 28.33% goes to your own retirement account (8.33% retirement, 20% pension); 2.67% is social insurance that pays for medical, maternity, accident and dependants' cover.
Home leave: one day for every 20 days worked; sick leave: 12 days a year; keep up to 90 and 45 days; paid at your last basic pay when you leave (ss. 43, 44, 49).
Request to receive the festival allowance at my own festival
To: [MANAGER OR HR NAME]
[EMPLOYER NAME]
Date: [DATE]
Subject: Festival allowance under section 37 of the Labour Act, 2017 (2074)
Dear Sir/Madam,
Under section 37(2) of the Labour Act, 2017 (2074), I request that my festival allowance for this fiscal year be paid on the occasion of [FESTIVAL, E.G. TIHAR, CHHATH, LHOSAR, EID OR CHRISTMAS], the main festival I celebrate, instead of at Dashain. Please pay it in full with my salary before the festival, in proportion to the months I have worked if I have not completed a year by then.
I would also be grateful for a statement of the contributions deposited in my name with the Social Security Fund this fiscal year.
Yours faithfully,
[YOUR NAME]
[YOUR POSITION AND EMPLOYEE NUMBER]
Employee: ________________________________ Date: ____/____/________
Received by: ________________________________ Date: ____/____/________
Check your SSF account
☐ Your SSF contributor ID is on your payslip or appointment letter.
☐ Each month's contribution appears in the SSF app or contributor login.
☐ The basic pay used for SSF is your basic remuneration, not your gross pay.
☐ Your nominee details are up to date.
Labour Act, 2017 (2074) ss. 37, 43, 44, 49, 52, 53, 57 (Nepal Law Commission); Social Security Fund — contribution and allocation (ssf.gov.np). Income tax (TDS) is not calculated. A calculation and a letter, not legal advice.