Social Security Tax (SST) सामाजिक सुरक्षा कर
The social security tax is the 1% charged on the first NPR 1,000,000 of a resident individual's annual income. It is collected through payroll like ordinary income tax, and it is waived for employees who contribute to the Social Security Fund.
Also called: SST, 1 percent tax Nepal, social security tax Nepal
Where it sits
The first band of the annual income tax table carries a 1% rate. That 1% is the social security tax rather than income tax proper, and it applies to the first NPR 1,000,000 of income for a resident natural person.
The SSF waiver
An employee contributing to the Social Security Fund is already funding social security directly, so the 1% is waived for them and the first band is charged at zero. Every band above it is unchanged.
In practice this means two employees on identical salaries can show different monthly TDS purely because one is SSF-enrolled and the other is not. It is not an error in the payroll run.
Social Security Tax (SST), answered
It is the social security tax, charged on the first NPR 1,000,000 of annual income for a resident individual. It is collected through payroll along with income tax.
Employees who contribute to the Social Security Fund. Their SSF contribution covers the same obligation, so the first band is charged at zero for them.
- Income Tax Act 2058 first-band provisions as reflected in lib/nepal-payroll.ts for FY 2083/84.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Related terms
- Income Tax Slabsआयकर दरAn income tax slab is a band of annual taxable income that is taxed at its own rate. Nepal's personal income tax is marginal: each rate applies only to the income inside its band, so moving into a higher slab never raises the tax on the income below it.
- Social Security Fund (SSF)सामाजिक सुरक्षा कोषSocial Security Fund (SSF) लाई नेपालीमा सामाजिक सुरक्षा कोष (samajik suraksha kosh) भनिन्छ। यसमा कर्मचारीको आधारभूत तलबको 11% कर्मचारीले र 20% रोजगारदाताले हरेक महिना योगदान गर्छन्, र यही रकमबाट उपचार, दुर्घटना, आश्रित परिवार र वृद्धावस्थाको सुरक्षा दिइन्छ। The Social Security Fund is Nepal's contributory social security scheme. Employer and employee together deposit 31% of the employee's basic salary every month (11% from the employee, 20% from the employer), and that pool pays out medical, accident, dependent-family and old-age benefits.
- TDS (Tax Deducted at Source)स्रोतमा कर कट्टीTDS is income tax withheld by the employer from an employee's salary each month and deposited with the Inland Revenue Department on the employee's behalf. It is calculated on annual projected income and spread across the year, not charged month by month in isolation.
Stop looking this up. Let the system apply it.
NepalHRM applies Nepal's payroll, leave and attendance rules per employee, every run, so the policy in your handbook and the numbers on the payslip stay the same document.
- No minimum commitment
- Nepal IRD compliant
- Free onboarding
- Cancel anytime