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




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