contributions

Who can contribute?

All employees who meet the eligibility requirements can contribute to Nasfund, either through compulsory employer contributions or voluntarily.

Am I allowed to open a trust account for my children?

No. At this stage an individual is not allowed to open Eda Supa accounts in Trust for children.

Compulsory Contributor
  • Every employer employing 15 or more employees.
  • Every employee receiving pay from above employer.
Voluntary Contributor
  • Every employer employing less than 15 employees but voluntarily elects to contribute.
  • Every employee receiving pay from the above employer and who elects to make voluntary contributions.

defining an employer

Who is an employer?

Any organisation, company, or entity in Papua New Guinea that registers and contributes superannuation funds on behalf of its employees as part of their retirement savings plan. 

Employers play a critical role in facilitating the regular remittance of employee contributions to Nasfund, ensuring compliance with the Superannuation Act of 2000. These contributions are essential for providing financial security to employees upon retirement, and Nasfund partners with employers to manage and grow these funds through strategic investments.

Employer means an entity including
  • An individual
  • A statutory authority or organisation
  • Unincorporated partnership or body or
  • A corporation that employs a person under a contract of service.
Where an employer consists of
  • Different departments
  • Has branches situated in the same place or in different places, all departments and branches will be treated as a single employer.
One or more related corporations will be treated as a single employer where;
  • The total employees of the related corporations are greater than 15
  • The operations of the related corporations have been conducted through, separate legal entities for the purpose of reducing the number of each of the separate entities’ employees below 15
Related corporations have the same meaning as that in the Companies Act 1997 so that where;
  • The other company is its holding or subsidiary company; or
  • More than 50% of the issued shares are held by the other corporation or member of that corporation
  • Business is done in such a way that the separate business of each company cannot be easily identified that those various companies will be treated as a single employer for the purpose of the Act

defining an employee

Who is an employee?

An employee is a person who:

  • Resides in Papua New Guinea
  • Works under a contract of service or engagement
  • Receives remuneration (wages, salary, or allowances)
  • Has contributions made on their behalf

This includes workers employed directly or through contractors or agents.

Exempted employees: Those involved in primary production (such as cocoa, copra, oil palm, rubber, tea, or coffee), who are employed by growers or processors, may be excluded unless they’ve worked for over 24 consecutive months.

And includes persons employed by or through a contractor or agent. But does not include;
  • 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.
From what income can contributions be deducted?

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…
That is;
  • Earned by the employee while on duty or on leave with pay
  • Paid or payable in cash to the employee
But does not include;
  • Overtime pay
  • After salary sacrificing of allowances including housing, car and education packaging
  • Bonuses
  • Compensations, etc.
Employer means an entity including
  • An individual
  • A statutory authority or organisation
  • Unincorporated partnership or body or
  • A corporation that employs a person under a contract of service.
Where an employer consists of
  • Different departments
  • Has branches situated in the same place or in different places, all departments and branches will be treated as a single employer.

remitting contributions

When Are Contributions Due?

Employers must remit superannuation contributions within 14 days after the end of each month. This ensures timely crediting to members’ accounts and enables prompt investment.

Late remittance may result in penalties under the Superannuation Act.

Key Remittance Rules
  • 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.
Breach of Duty

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.

Duty to Contribute

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.
Changes to Employer's rate of contribution

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.
What are the rates of contributions?

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.

When to remit Employer Contributions:
  • Employer shall remit Employer Contributions within 14 days of each month

Get in touch

Do you have a question for us?

Please contact us on:
Call: 1588
Email: help@nasfund.com.pg

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