Wednesday, February 22, 2012 / Ehijeagbon Oserogho
Here is some new information on the implementation of the new Employee's Compensation Act, 2010.
It does appear that NSITF has commenced the implementation of this legislation as Consultants appointed by NSITF are now contacting employers to comply with the provisions of this law.
In Summary, the Employee's Compensation Act requires every employer to within the first two years of its commencement make a 1% payroll employee's compensation contribution to NSITF. NSITF is mandated to administer the Employee's Compensation Fund. The penalty for non-compliance is the minimum penalty of 10% of the un-remitted 1% monthly payroll employee contribution to NSITF.
Contributions under the Employee's Compensation Act 2010 and the Pension Reform Act (as amended) are tax deductible expenses to the employer while the benefits under both legislations are exempted from tax in Nigeria.
The Employee's Compensation Act 2010 has not abrogated the Group Life Policy required under the Pension Reform Act (as amended). Employers should therefore continue to
(i) remit pension contributions for their employees;
(ii) take out a Group Life Policy for their employees;
(iii) remit to NSITF 1% payroll as employee's compensation contribution.
It will be useful if employees are kept informed of these compliance by their employer. We will avail you of any further information received.
Ehijeagbon O. Oserogho, Esq. Business Solicitor & Notary Public NSE Centre, 1 Engineering Close 2nd Floor, Suite 206, Off Idowu Taylor Street Victoria Island, Lagos, Nigeria P. O. Box. 56264 Falomo-Ikoyi, Lagos, Nigeria Phone/Fax: (+234-1) 463 7414 Office Phone: (+234-1) 481 1014; (+234-1) 765 5635 Mobile: (+234-1) 803 326 4753; (+234-1) 765 5635 P.O.Box 56261 Falomo Ikoyi Lagos Alt Email: firstname.lastname@example.org Website: http://www.oseroghoassociates.com/