Currently, employers and employees in companies with at least three employees are mandated to contribute a combined 18 percent of pay to a Retirement Savings Account (10 percent and 8 percent, respectively). The Nigerian Pension Reform Act of 2014 introduced additional voluntary contributions.
In late 2018, the National Pension Commission (PENCOM) published its “Guidelines on Voluntary Contribution under the Contributory Pension Scheme,” which details uniform regulations for the establishment and administration of contributions. Regulations apply to current contributions as well as voluntary contributions made prior to the issuance of the guidelines. Employers should review the official guidelines relative to their current practices to ensure compliance with all voluntary pension contributions made to date.
Full guidelines can be referenced on the PENCOM website here.
