29th July 2025, Kathmandu
In a landmark commitment to employee welfare and in adherence to national regulatory mandates, Siddhartha Bank has officially integrated its workforce into Nepal’s Employees Provident Fund (EPF).
Siddhartha Bank Provident Fund
This significant move sees the bank transfer an initial NPR 1.58 billion in employee provident contributions to the esteemed national retirement and social security institution.
The formal agreement, recently signed between Siddhartha Bank and the Employees Provident Fund, marks a crucial step. Starting from the current fiscal year, Siddhartha Bank will directly deposit its employees’ monthly provident fund contributions into the centralized EPF system. This strategic alignment reflects the government’s ongoing policy to consolidate all approved retirement funds under national provident institutions, streamlining social security benefits and enhancing financial oversight across various sectors.
Extensive Benefits for Over 1,950 Employees
Siddhartha Bank, with its robust workforce of 1,955 staff members, ensures that every single employee will now have their provident fund contributions meticulously managed by the EPF. This transition is poised to provide long-term financial security for the bank’s dedicated employees, simultaneously granting them access to a comprehensive array of EPF’s member benefits and services.
The agreement was formalized with the signatures of Sagar Kumar Singh, Head of Contributor Services Department of the Employees Provident Fund, and Suresh Raj Maharjan, Deputy General Manager of Siddhartha Bank. Through this partnership, Siddhartha Bank employees gain full access to the EPF’s diverse range of low-interest loan schemes, meticulously designed to support various personal and financial needs. These include:
- Special Purpose Loans: Catering to a wide range of specific financial requirements.
- Housing Loans: Facilitating homeownership and property acquisition.
- Educational Loans: Supporting employees’ and their families’ educational pursuits.
- Home Renovation Loans: Enabling improvements and upgrades to existing homes.
- Land Purchase Loans: Assisting with the acquisition of land.
- General Loans: Offering flexible financing for miscellaneous needs.
All these essential facilities are available to employees upon fulfilling the established procedures and time requirements, ensuring a structured and accessible benefit system.
Enhanced Social Security Coverage Beyond Loans
The advantages of EPF affiliation extend well beyond loan schemes. EPF provides various crucial social security benefits to its members, ensuring peace of mind without imposing any additional financial burden on the employees themselves. These invaluable benefits include:
- Medical Reimbursement: Up to NPR 100,000 annually for general illnesses, providing essential financial relief for healthcare expenses.
- Critical Illness Coverage: Up to NPR 1,000,000 for critical illnesses over the course of employment, offering substantial support during severe health challenges.
- Accidental Compensation: Up to NPR 200,000 in the event of accidents, providing a safety net for unforeseen circumstances.
- Funeral Grant: A compassionate grant of NPR 40,000 provided to legal heirs in the unfortunate event of a member’s demise.
- Maternity and Child Care Allowance: A supportive allowance of NPR 7,500 per childbirth, available for up to two children, aiding new parents with associated costs.
These comprehensive benefits are designed to significantly enhance the financial security and overall well-being of employees and their families, offering crucial support during critical life events.
Expanding EPF Coverage Across Nepal’s Financial Sector
With the recent inclusion of Siddhartha Bank, the Employees Provident Fund’s reach within Nepal’s financial sector continues to expand impressively. A total of 591 banks and financial institutions are now proudly affiliated with the EPF, reflecting a broad-based commitment to employee welfare across the industry. The EPF currently oversees savings for an impressive 579,000 contributors from 81,650 organizations. Beyond these, it also diligently manages retirement-based pension funds for 95,773 contributors from 4,290 offices, solidifying its role as a cornerstone of Nepal’s social security framework.
The integration of Siddhartha Bank into the EPF system is a direct response to recent legislative changes introduced in Nepal’s Economic Act 2082. This pivotal act mandates that retirement funds previously approved by the Inland Revenue Department must now be consolidated under recognized institutions like the EPF or other similar designated funds.
Specifically, on Ashar 31, 2082, the Inland Revenue Department issued an official notification, stipulating that all approved retirement funds must enroll with the EPF or other recognized funds by the end of Ashar 2083 (mid-July 2026). This regulatory shift has been a catalyst, prompting a growing number of financial institutions across the nation to proactively enroll their employees in the national provident scheme, ensuring compliance and enhancing employee benefits.
A Strategic Leap Towards Financial Inclusion and Compliance
This partnership between Siddhartha Bank and the Employees Provident Fund signifies a proactive and forward-thinking step. It not only ensures Siddhartha Bank’s full compliance with evolving national regulations but also profoundly enhances the financial resilience and security of its entire employee base. This move embodies a broader and commendable trend observed among banks and financial institutions in Nepal: a concerted effort towards formalizing retirement benefits and seamlessly integrating with robust, national-level social security systems, ultimately contributing to a more secure and equitable financial future for their valued employees.
For More: Siddhartha Bank Provident Fund