Pension contributions in Nigeria: Obligations for remittance (Part 2)

By Deloitte Nigeria | 1 min read
10th October 2018
Pension contributions in Nigeria: Obligations for remittance (Part 2)

A summary of employee and employer obligations is shown in the table below:

Subject

Employer

Employee

Registration required












  • Register with Pension Commission and obtain a registration number
  • Open a nominal retirement savings  account (RSA) for an employee where the employee does not open and RSA within six (6) months of resumption of duty






Register with preferred pension fund administrator (PFA) and obtain an RSA number. In Nigeria, the number starts with PEN-xxxxxxxxxx









Contribution amount







Make monthly payments of pension deducted and contributed. 

An employer may choose to
contribute the total minimum contribution of 18% (i.e. employer's contribution of 10% plus employee's contribution of 8%).




A minimum of 8% of the monthly emolument. 

Can make additional contribution on a voluntary basis







Reporting requirements (Deduction and Remittance)










Make monthly payments of pension deducted and contributed.

Send details of employee name, employee RSA and amount contributed (employee and employer) to PFA and request for update of employees RSA records




None required 


Regularly check with your PFA to confirm your RSA reflects amounts remitted by the employer







Life Assurance







The employer is required   to have a group life assurance cover for all its employees 

The amount assured must not be less than three (3) times each employee's annual remuneration 



No obligation

Enquire if employer has a group life assurance cover








 


Deloitte Nigeria
Deloitte & Touche is the Deloitte Touche Tohmatsu Limited (DTTL) member firm in Nigeria and the oldest indigenous professional services firm in Nigeria. The firm was established in 1952 by Mr. Akintola Williams, FCA, CFR, CBE, the doyen of the accountancy profession in Nigeria. Through astute management, the member firm has grown in size and scope of services to become one of the largest global professional services organisations in Nigeria, with offices in Lagos, Abuja and Port Harcourt. The firm currently provides audit, tax, consulting, accounting and financial advisory, corporate finance, and risk advisory services, to public and private clients spanning multiple industries. www.deloitte.com.ng
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