The contributions of an employee shall be deducted directly from the employee’s pay by the employer at the time of payment and paid to Nasfund within 14 days of the date of deduction. Pay means remuneration of any kind including;

• gross salary
• wages
• leave entitlements
• commissions, etc…

• Employees who are involved in primary production and employed by an employer who is in the business of growing or processing cocoa, copra, oil palm, rubber, tea, or coffee (exempted employees).
• Note that employees in this category whose employment may be seasonal so that there are intervals of unemployment are generally not regarded as employees unless they have been employed for more than 24 months.

• Employer shall remit Employer Contributions within 14 days of each month

• Within 14 days of the date of deduction

Pursuant to Sections 5 and 6 of the Superannuation Regulation 2002 the contributions have progressively increased over the years and settled at 8.4% for employers and 6% for employees.

Below are changes in employer contribution percentages (%) over time.

• 7% to 31st December 2004
• 7.7% from 1st January 2005 to 31st December 2007
• 8.4% from 1st January 2008 to date.

• 5% to 31st December 2004
• 5.5% from 1st January 2005 to 31st December 2007
• 6% from 1st January 2008 onward

Every employer employing 15 or more employees has the duty to;

• Pay the employer portion of the contribution in respect of each of its employees continuously employed for 3 months or more
• Deduct from its employees pay the employee portion of the contribution
• Remit those contributions.

Failure to comply with contribution rules is considered a breach of fiduciary duty and may result in penalties or legal action.

A failure to perform the above duties amounts to an offense for which the employer may be prosecuted. If the company is found guilty and convicted of the offense, the following penalties will be imposed;

Failure to pay Employer Contribution:

• Fine not exceeding K100,000.00
• Imprisonment for a term not exceeding 2years
• Both of the above

Failure to Remit Contributions deducted:

• Fine not exceeding K500,000.00
• Imprisonment for a term not exceeding 15 years
• Both of the above

Note: where the offense continues after conviction, a default penalty fine of K5,000.00 a day will be imposed until the fine is paid.

• Employers must not reduce an employee’s salary or benefits because of superannuation obligations.
• Contributions must be made regardless of pay frequency (daily, weekly, fortnightly, monthly).
• Any contract clauses allowing contributions below the legal minimum are considered void.
• Both employers and employees may voluntarily contribute above the prescribed minimum rates.