The Central Bank is warning issued a warning to all employers not remitting superannuation contribution to Authorised Superannuation Fund (ASF) as per the Superannuation Act 2000.
Acting Governor for Central Bank, Elizabeth Genia, said employers who commits this offence will be prosecuted by BPNG under Section 114 of the Act.
An employer is required, in respect of each employees continuously employed for three months or more, to deduct from the employee 6 percent of the base salary and 8.4 percent of the base salary from its own funds on behalf of the employee, and remit to an ASF within 14 days of the date of the calendar month as per Sections 76 and 77 of the Act.
Ms Genia in a statement said it is an offence for an employer not to comply with the Act.
Penalty for an offence is a fine of up to K500,000 or a term of imprisonment not exceeding 10 years or both a fine and imprisonment.
Ms Genia said the Central Bank officers will be visiting employers to ensure they are complying with the Act.
The Superannuation (General Provisions) Act 2000 (the Act) and Superannuation (Amendment) Regulation 2004 applies to;
- Every employer employing or engaging 15 or more employee;
- Every employee engaged in employment by an employer under Paragraph (a) receiving pay, whether they make mandatory or voluntary contributions to an Authorised Superannuation Fund (ASF);
- Every employer employing engaging less than 15 employees, where the employer elects on a voluntary basis to make employer contributions to an ASF on behalf of an employee and;
- Every employee engaged in an employment by an employer under Subsection(c) and receiving pay, who elects on a voluntary basis to make employee contributions to an ASF.
The public is urged to report any employer not remitting superannuation contribution to an ASF as per the Act to the Central Bank’s Employer Contribution Enforcement Unit.