36 Employers paid N577 million Penalty for late Remittance of Pension Contribution – PensionNigeria

36 Employers paid N577 million Penalty for late Remittance of Pension Contribution

The National Pension Commission (PenCom) has disclosed in its quarterly report for 4th quarter 2021 that 36 employers paid N577,874,127.55 as penalty for late remittance of pension contribution during the quarter.

PenCom giving update on the recovery of outstanding pension contributions and penalties from defaulting employers said it issued demand notices to defaulting employers whose pension liabilities were established by the Recovery Agents (RAs).

The sum of N984,295,614.20 representing principal contribution N406,421,486.65 and penalty N577,874,127.55 was recovered from 36 defaulting employers during the quarter under review.

PenCom further disclosed that it has also recommended appropriate legal action for 18 defaulting employers who are yet to pay their outstanding pension contributions and penalty for late remittance.

Recovery Agents

A recovery agent is any company engaged by PenCom to recover outstanding pension contributions with interest penalty from defaulting employers within a specified timeframe and under agreed terms and conditions.

Defaulting Employer

A defaulting employer is an employer who has defaulted in the remittance of pension contributions either for non remittance, incomplete remittance or late remittance.

Non remittance

Where an employer fails to deduct and or fails to remit pension contributions for its employees.

Incomplete Remittance

The percentage for the pension contribution is a minimum of 8% by employee and minimum of 10% by employer, the percentages are to be applied to the employee’s monthly emolument which must not be lower than the employee Basic salary, transport and housing allowance.

Late Remittance

Employers are required to deduct at source the pension contributions of their employees, and within 7 working days after the payment of salary, remit same to the Pension Fund Custodian (PFC) of the employees’ Pension Fund Administrator (PFA).

Penalty

Any employer who fails to deduct or remit pension contributions within 7 working days after payment of salary, shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by PenCom from time to time, but the penalty shall not be less than 2% of the total contribution that remains unpaid for each month or part of each month the default continues and the amount of the penalty shall be recoverable as a debt owed to the employee’s retirement savings account.

Also Check out
What can I do if my employer refuses to remit my pension contributions

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

Subscribe to PensionNigeria Daily Newsletter and get Today’s Top Pension News delivered straight into your email box every Evening. Click here to Subscribe

DONT MISS PenCom 4th Quarter 2021 Report Series

Status of Implementation of CPS in States as at December 2021
Analysis of Pension Operating Environment Q4 2021
Appointment & Resignation of Pension Operators’ Board Members
PenCom issued 1,526 organizations Compliance Certificates in Q42021, Full details and list of Employers
36 Employers paid N577 million Penalty for late Remittance of Pension Contribution
Update on NSITF & Refund of Pension Contribution to Military & SSS
How PenCom monitored the Pension Industry Q4 2021
Update on the Micro Pension Plan Q42021
Update on the RSA Transfer System (RTS) Q42021
Biggest PFAs by RSA Registrations December 2021
PFAs paid N203 billion to RSA Holders in 2021

Also Check out
Performance of all PFAs in Nigeria for Full Year 2021

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

Subscribe to PensionNigeria Weekly Newsletter to ensure you don’t miss any post Click here to Subscribe

Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube

error: Content is protected.