The Employees Provident Fund (EPF) Nepal serves as a vital retirement savings mechanism for employees across government, public enterprises, and private sectors. Established under the Employee Provident Fund Act, 2019 (2062), the EPF ensures financial security for its members through systematic savings and interest accrual.

Contribution Mechanism

10% amount deducted from contributor’s monthly salary and same amount added by the employer  will be deposited in an account. EPF manages the deposit and returns the interest and profit to the concerned employee after his/her retirement or detachment from the office due to any reason.

Interest and Profit Allocation

The EPF offers competitive interest rates on the accumulated funds. For instance, in the fiscal year 2081/82, contributors received an interest rate of 5.5%, with an additional 1% added at the end of the year, totaling 6.5%. Interest is calculated monthly but credited annually, enhancing the growth of members’ savings.

Fund Management and Transparency

The EPF invests the pooled funds in various sectors, including infrastructure and hydroelectric projects, aiming to generate stable returns. Annually, the EPF provides contributors with detailed statements outlining monthly contributions, interest earned, and the total balance, ensuring transparency and trust in fund management.

Through these mechanisms, the EPF Nepal not only facilitates disciplined savings among employees but also ensures the growth and security of their retirement funds.