If you have a payslip in Nepal, chances are a chunk of it already disappears into EPF, SSF, or CIT every month - often without anyone explaining what the difference is. This guide compares all three on the things that actually matter: how much goes in, what you get back, how safe it is, and who each one is really built for.
Quick Answer
EPF (Karmachari Sanchaya Kosh) is a straightforward, fixed-return retirement savings fund for salaried employees - simple, predictable, but retirement-only. SSF (Social Security Fund) is Nepal's newer, mandatory, broader-coverage scheme that bundles pension savings with medical, accident, and dependent-family protection - and it is gradually replacing EPF for new employment relationships. CIT (Citizen Investment Trust) is a voluntary top-up you can add on your own, including if you are self-employed or freelance, with several scheme options and returns that move with investment performance rather than being fixed.
Most salaried employees do not choose just one - they are enrolled in EPF or SSF through their employer, and optionally add CIT for extra savings and tax deduction room.
What Each Fund Actually Is
EPF - Employees Provident Fund (Karmachari Sanchaya Kosh)
EPF is Nepal's original statutory retirement savings scheme, operating under the Employee Provident Fund Act. Every month, 10% of your basic salary is deducted and your employer adds a matching 10%, so 20% of basic salary goes into your individual account. EPF also offers subsidized loans against your balance for home construction, land purchase, and renovation, which is one of its most-used practical benefits.
Returns are declared annually by EPF's board and are not tied to market performance. For FY 2082/83 (the Nepali fiscal year beginning mid-July 2025), EPF set its contributors' interest rate at 5.00% per annum, revised from the previous year. Because this rate changes yearly, always check the current figure on the official EPF website (epf.org.np) before making assumptions in your own planning.
SSF - Social Security Fund (Samajik Suraksha Kosh)
SSF was established under the Contribution Based Social Security Act, 2074 (2017) and has been rolling out across Nepal's formal private sector since 2018/2019. It is now mandatory for employers with 10 or more employees, and many new hires are enrolled directly into SSF rather than EPF.
The combined contribution is higher than EPF at 31% of basic salary: 11% from the employee (10% toward pension savings plus 1% social security tax) and 20% from the employer (10% pension matching, 8.33% gratuity, and 1.67% additional contribution). In exchange for the higher contribution, SSF bundles four protections into one scheme instead of just retirement savings:
- Medical, health and maternity protection - hospitalization and maternity-related coverage
- Accident and disability protection - compensation for workplace accidents and disability
- Dependent family protection - a payout to nominees if the contributor dies
- Old-age protection - the pension and lump-sum component paid at retirement
SSF membership cannot be opted out of once an employer is registered, and enforcement has tightened - a July 2025 amendment increased penalties for employers who fail to deposit contributions on time.
CIT - Citizen Investment Trust (Nagarik Lagani Kosh)
CIT is a government-owned financial institution operating under the Citizen Investment Trust Act, 2047 (1991). Unlike EPF and SSF, CIT is not a single scheme - it runs several products, and participation is generally voluntary rather than a payroll-mandated deduction:
- Employee Savings Growth Retirement Fund (ESGRF) - an employer-organized retirement scheme, an alternative some organizations use instead of, or alongside, EPF
- Citizen Pension Scheme (Nagarik Pension Yojana) - fully voluntary and open to anyone, including the self-employed, freelancers, and informal-sector workers, starting from as little as NPR 500 per month
- Citizen Unit Scheme - a mutual-fund-style savings product rather than a pure retirement account
CIT's declared interest rates are reviewed periodically and are not fixed the way EPF's is - they move with the fund's investment performance and have varied noticeably from year to year across recent fiscal years for the same scheme. Because rates and bonus payouts change, treat any number you see for CIT as a snapshot and confirm the current one on cit.org.np before deciding.
Side-by-Side Comparison
| Factor | EPF | SSF | CIT |
|---|---|---|---|
| Legal basis | Employee Provident Fund Act | Contribution Based Social Security Act, 2074 | Citizen Investment Trust Act, 2047 |
| Enrollment | Employer-based, formal sector | Mandatory for employers with 10+ staff | Voluntary; employer-organized or individual |
| Combined contribution | 20% of basic salary (10% + 10%) | 31% of basic salary (11% + 20%) | Scheme-defined, from NPR 500/month |
| Return type | Fixed, declared annually | Pension formula plus benefit payouts | Variable, based on fund performance |
| Recent indicative rate | 5.00% p.a. (FY 2082/83) | Pension-linked, not a simple interest rate | Roughly 3.75% to 6.50% depending on scheme and year |
| Coverage beyond retirement | None (retirement savings only) | Medical, accident, dependent-family, old-age | None (savings/investment focus) |
| Loans against balance | Yes, home and education-related | Limited, scheme-dependent | Yes, for education, housing, and other needs |
| Who can join | Salaried employees only | Salaried employees (formal sector) | Anyone, including self-employed and freelancers |
| Opt-out possible | No, once enrolled by employer | No, once employer registers you | Yes, entirely voluntary |
Tip: EPF, SSF, and CIT contributions are usually combined for tax purposes. Contributions to approved retirement funds are deductible up to whichever is lower: NPR 500,000 or one-third of your assessable income for the year. If you are already maxing out SSF or EPF deductions through your job, additional CIT contributions may not add further tax benefit - check the combined ceiling before contributing more.
Which One Should You Actually Choose?
For most salaried employees, this is not really a free choice - your employer determines whether you are on EPF or SSF, and increasingly new hires go straight into SSF. The genuine decision point is usually whether to add a voluntary CIT scheme on top. Here is how to think about it by situation.
You are a salaried employee already on EPF or SSF
Your core retirement and (if on SSF) protection coverage is already being built automatically. Consider CIT's Citizen Pension Scheme only if you want to save more than your mandatory contribution allows, or if you have tax-deduction room left after your EPF/SSF contributions.
You are self-employed, freelance, or work in the informal sector
Neither EPF nor SSF applies to you automatically. CIT's Citizen Pension Scheme is the most accessible formal retirement option, since it accepts voluntary contributions from NPR 500 per month with no employer requirement. Some freelancers also register for SSF voluntarily where the option exists.
You are an employer choosing a scheme for your organization
If your organization has 10 or more employees, SSF registration is generally mandatory going forward. Smaller organizations still weigh EPF (simpler, cheaper for the employer) against SSF (broader worker protection, higher cost, and increasingly the compliance expectation).
Quick Decision Helper
Common Mistakes to Avoid
- Assuming EPF and SSF are interchangeable. SSF replaced EPF for many new registrations, but existing EPF accounts are not automatically converted - the two run as separate systems with separate balances and rules.
- Contributing to CIT without checking the tax ceiling. If your EPF or SSF contributions already reach the deductible limit, extra CIT contributions may not reduce your tax bill further, even though they still grow your savings.
- Treating CIT's advertised rate as guaranteed. Unlike EPF's declared fixed rate, CIT scheme returns vary by year and by scheme - a rate you saw last year may not apply this year.
- Ignoring SSF's non-pension benefits. Many SSF contributors focus only on the retirement component and forget they are also covered for medical, accident, and dependent-family protection - benefits worth understanding before an emergency, not after.
- Not registering an employer-run scheme correctly. Employers who miss SSF registration or deposit deadlines face penalties and, in some cases, personal liability for benefits an employee would otherwise have received.
Frequently Asked Questions
Can I be enrolled in both EPF and SSF at the same time?
Typically no for the same employment - an employer registers staff into either EPF or SSF, not both, for a given job. However, you can hold an existing EPF balance from a previous job while your current employer contributes to SSF; the two accounts simply sit separately.
Is SSF really mandatory, or can I opt out?
Once your employer is registered with SSF (which is required for organizations with 10 or more employees), enrollment is mandatory for covered employees. Individuals cannot opt out on their own.
What happens to my EPF or SSF balance if I change jobs?
Your balance stays yours and continues earning the declared return. With a new employer under the same scheme, contributions typically continue into the same account; check the current transfer or continuation process with the fund directly, since procedures can be updated.
Can freelancers or self-employed people join SSF instead of CIT?
Self-employed and informal-sector individuals can join SSF voluntarily where that option is offered, in addition to CIT's Citizen Pension Scheme. Compare the contribution structure and benefits of each before choosing, since the two are not identical products.
Is CIT riskier than EPF or SSF?
CIT is a government-owned institution, so it is not "risky" in the sense of an unregulated product, but its returns are variable rather than fixed, meaning the interest credited can go up or down between years depending on scheme performance. EPF's declared rate is fixed for the year once announced, which makes near-term returns more predictable.
Do EPF, SSF, and CIT interest rates change every year?
Yes. All three review and can revise their rates, typically around the start of the Nepali fiscal year in mid-July. Treat any specific percentage you read, including in this article, as a point-in-time figure and confirm the current rate on the fund's official website before making a decision.
Conclusion
EPF, SSF, and CIT are not competing products so much as different layers of Nepal's retirement system. EPF gives you simplicity and a fixed return, SSF gives you mandatory, broader protection at a higher contribution cost, and CIT gives you a voluntary way to save more or to get formal retirement coverage at all if you are outside the formal salaried sector. The right combination depends on your employment status and how much of your tax-deduction room is already used - not on picking a single "best" fund.
If you are also comparing where to put money you invest rather than save for retirement, see our guides on open-end vs closed-end mutual funds in Nepal and why Nepal mutual funds trade below NAV.