Short answer
Under the Labour Act, your employer deducts 10% of your basic pay for provident fund, adds the same amount again and deposits both. It also sets aside 8.33% of your basic pay every month as gratuity. Both are deposited in the Social Security Fund in your name from the day you start work, not after a qualifying period. You also get a festival allowance of one month's basic pay each year. Check your SSF account regularly to make sure the money is actually being deposited.
The details
What goes in each month
| Contribution | Paid by | Rate |
|---|---|---|
| Provident fund | You | 10% of basic pay |
| Provident fund | Employer, matching yours | 10% of basic pay |
| Gratuity | Employer | 8.33% of basic pay |
All of it is deposited in the Social Security Fund in your name. Contributions are worked out on basic pay, not your total salary with allowances.
Common problems
How do I check my SSF contributions?
Log in to your contributor account on the Social Security Fund website or app. If deposits are missing, raise it with your employer, then with the Fund on its toll-free number 1116.
My employer says gratuity starts after three years.
Not under the current Labour Act. Gratuity is set aside from the day you start work.
Is the festival allowance compulsory?
Yes. Every worker is entitled to one month's basic pay a year as festival expense, paid for their main festival.
Do I pay the 1% social security tax if I'm in SSF?
Contributors to the Social Security Fund don't pay the 1% social security tax on salary. See the salary tax page.
Real experiences
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