Dear employers,

The standard remittance for Pension is 18% which is a cumulative of the Employees and employers.

Employees 8% of BHT
Employers 10% of BHT

BHT (Basic, Housing, Transport Allowance).

Some employers do not remit pensions because they don't want to pay their 10% hence they are not deducting the employee's 8% this is wrong as it is not a standardized practice when it comes to statutory remittance.

Employees mustn't rejoice when their own 8% of BHT is not remitted thinking they are going home with more money forgetting that there is a 10% from the employer that is not remitted also.

Other employers remit only 8% from the employee and nothing more.

I have heard of employers who remit the entire 18% on behalf of their employees, for this we commend you highly.

Employers must comply with the Pension Act fully, Sometimes there is not much the Finance team or HR team can do when the employer refuses to comply.

We hope for best practice when it comes to statutory remittance as some employers will prefer to remit only PAYE and leave out Pension.

In the event they refuse to remit your pension, their are two methods to get them remit your pension

here two methods

Method 1

1. Get a statement of account from your PFA
2. Write a letter to your employer asking them to remit all your pension deducted from your monthly salary.
2(a). Attach a copy of the statement of account as evidence that your employer is not up to date in it's remittance of your pension.
2(b). If possible attach all your pay slip as evidence that your pension are constantly deducted.
2(c). Quote a section of the Pension Reform Act where there is penalty for non remittance of deducted pension from employee salary.
2(d) CC the following in your letter:
PENCOM
YOUR PFA
EFCC.
3. Ensure you send a copy of the letter to your PFA and PENCOM.
4. Ensure you have a copy of your letter duly stamped " RECEIVED "
5. Do all above also by E-mail to your HR, Finance Dept, and MD, especially if you are not getting positive feedback from the hardcopy of your letter.


Method 2
Write a letter to the Head, Surveillance Department, the address in Lagos is 88A oduduwa crescent Ikeja GRA, Lagos
Watch the magic that would unfolds.

Method 2 works faster than the speed of light