4. What is the punishment for an employer who fails to remit pension contribution – PensionNigeria

4. What is the punishment for an employer who fails to remit pension contribution

Pension Reform Act 2014 mandates that employers must remit pension contributions on behalf of their employees within 7 working days from the date of payment of salaries. Where the employer fails to either deduct or remit the contributions within the stipulated time, the employer will be liable to pay a penalty that is not less than 2% of the total outstanding pension contributions that remains unpaid for each month or part of each month the default continues.

It is the responsibility of the employee to report employers who have refused to remit pension contributions to National Pension Commission.

National Pension Commission as the regulator for the industry uses Recovery Agents to go after reported employers and ensure that they pay the outstanding pension contributions plus interest.

 

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