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Payroll / Practical guide

SSF, provident fund, and CIT payroll configuration explained

Confirm which scheme applies to each employee, then test how each amount affects net pay and the ledger.

Published by ERP Nepal · · Editorial approach

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Know the scheme

SSF, provident fund, and CIT are different arrangements. Record each employee’s scheme, basis, and effective date; this guide gives no statutory rates.

References: Social Security Fund: official employer and contributor resourcesCitizen Investment Trust: official schemes and notices

Keep four amounts separate

Combining these into one deduction makes slips and payments hard to reconcile.

Keep four amounts separate
QuestionCheck in the configuration
Does this reduce employee take-home pay?Employee deduction and its approved basis
Is this an additional employer cost?Employer expense and fund liability posting
Who must receive the money?Fund account, employee identifier, and remittance record
How does it affect taxable income?Approved tax treatment, limits, and effective period

References: Frappe HR: Salary Component

Test the flow with fictional numbers

If net pay shows NPR 51,000, the employer amount was wrongly added to pay.

Test the flow with fictional numbers
Test lineNPR
Gross earnings50,000
Employee fund deduction3,000
Employee net47,000
Employer fund amount4,000
Fund payable to reconcile7,000

References: Frappe HR: Salary ComponentFrappe HR: How to process PayrollFrappe HR: Setting Up Income Tax Deduction

Questions and answers

Should every employee have SSF, PF, and CIT?

No. Enable only the schemes each employee belongs to.

Does Nepal Compliance support these?

Yes: EPF, SSF, CIT, and optional contributions.

Sources and further reading

Checked 28 September 2026.