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
On this page
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.
| Question | Check 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 line | NPR |
|---|---|
| Gross earnings | 50,000 |
| Employee fund deduction | 3,000 |
| Employee net | 47,000 |
| Employer fund amount | 4,000 |
| Fund payable to reconcile | 7,000 |
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.