How Much is a Worker Required to Contribute to the Scheme?
Contributions to the Three-tier Pension Scheme are as follows:
An employer of an establishment shall deduct from the salary of every worker in the establishment immediately at the end of the month, a worker’s contribution of an amount equal to five and half per centum (5.5%) of the worker’s salary for the period, irrespective of whether or not the salary is actually paid to the worker;
An employer of an establishment shall pay for each month in respect of each worker, an employer’s contribution of an amount equal to thirteen per centum (13.0%) of the worker’s salary during the month;
Out of the total contribution of eighteen and a half per centum (18.5%) an employer shall within fourteen days from the end of each month transfer the following remittances to the mandatory schemes of each worker:
Thirteen and half per centum (13.5%) to the First Tier mandatory basic national social security scheme; and
Five per centum (5%) to the second tier mandatory Occupational Pension scheme
Out of the total contributions of thirteen and half per centum transferred to the First Tier mandatory basic national social security scheme, two and half per centum (2.5%) shall be deducted and transferred to the National Health Insurance Fund;
The minimum contribution is eighteen and half per centum of the approved monthly equivalent of the national daily minimum wage;
Total contributions by employer and employee to the Third Tier scheme are tax deductible up to sixteen and a half per centum (16.5%) of employee’s gross month salary.
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