What body is responsible for Contribution in Nigeria?
The Nigeria Social Insurance Trust Fund is the body established by the Nigerian trust fund act 1993 which shall be paid all contributions and other monies as may be required to be paid or contributed under this Act and which Fund shall be operated and managed as provided in this Act
What is (are) the function of the commission?
The commission through its board performs the following functions
(a) the administration of the Fund and the investment of sums forming part of the Fund;
(b) the payment of the various benefits provided under this Act to persons entitled to the benefit; and
(c) the general administration of this Act and regulations made thereunder.
What Is The Scope Of Application Of The Act?
This law applies to every person
– Employed by an incorporated company or deemed incorporated
– Employed by a partnership (irrespective of the number
Who Can Be Registration?
Employees of these companies can be registered with the board in any manner as may be prescribed by the board.
Who Are Exempted From Registration
The following classes of individuals are exempted from registration
- Employees of public service of federation or a state or local government area who are entitled to the benefit of any scheme or pension on terms substantially similar to those prescribed by the pension act
- Person entitled to diplomatic and equivalent status under diplomatic, privileges, and immunities act
- Persons who are not citizens of Nigeria who are employed in Nigeria for a period not less than six years
- A minister of a religion who is engaged in the propagation of his faith
What Are The Categories Of Contribution Employers Can Make?
Employers are required by law to make the following contribution:
- Contribution for the first category: this contribution will be payable by or on behalf of the employee against the contingency of retirement, pension, death, invalidity, and emigration
- Contribution for the second category: this contribution is payable on behalf of the employee by the employer against the contingency of employment injury
Frequency of payment
Contribution is to be paid monthly.
The various classes of contribution shall be paid every month at the rate prescribed by the regulation computed by reference to the wages of the employee
The contribution payable in respect of each month shall be on the last day of the month concerned
What Is The Penalty For Default?
If payment is not made within the time prescribed a sum of 5 % of the amount unpaid shall be added for each month or part of the month after the date when payment should have been made and any amount shall be recovered as a debt owing to the board by the employer
Will Salary Be Reduced?
No Employer can reduce remuneration on account of contribution
The Categories Of Benefit
The categories of benefits as envisaged by the Act includes:
- Retirement pension benefit
- Retirement grant
- Survivors benefits
- Death grant
- Invalidity benefit
- Invalidity grant
Reference
Section 1 Nigerian Social Insurance Trust Fund Act 1993
Section 4 Nigerian Social Insurance Trust Fund Act 1993
Section 10 Nigerian Social Insurance Trust Fund Act 1993
Section 11 Nigerian Social Insurance Trust Fund Act 1993
Section 12 Nigerian Social Insurance Trust Fund Act 1993
Section 13 Nigerian Social Insurance Trust Fund Act 1993
Section 15 Nigerian Social Insurance Trust Fund Act 1993
Section 16Nigerian Social Insurance Trust Fund Act 1993
