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Paying of Statutory Contributions

Assessment of Payable Contribution

An Employer is required to remit 10 % of an employee’s GROSS earnings subject to the prevailing ceiling amount.
What constitutes Gross Earning for NAPSA Purposes?

Basic salary and
+ Allowances
+ Leave Pay
+ Commutation of leave days
+ Bonus

Paying of Statutory Contributions

When are contributions due?

  1. By the 10th of the ensuing month
  2. Payment made after the due date attract penalty
What are the available options for remitting contributions?
  1. Bank transfer
  2. Cheque payment
  3. Cash payment

Provision of Contributions Data

What is the required documentation when making payments?
  1. Remittance form
  2. Monthly Return
  3. What are the acceptable formats for filing Returns?
  4. Hard copy format monthly return hard copy format.xlsx
  5. Electronic format (preferred option can be downloaded for each year starting year 2000)

Benefits of e-Filing – CMRs

  1. Better Record Management – ease filing & retrieval of data
  2. Error free assessments
  3. Faster and error free crediting of members’ accounts
  4. Quicker processing cycle for Benefits

Impact of Errors/Omissions on Member Records

 

  • Fictitious NRC & SS #s
  • No NRC &  SS #s.
  • No full names
  • Use of Incorrect Ceiling
  • Wrong Assessments
  • Manual submissions
  • Remittance of contr. above age 55
  • Missing member/beneficiaries data

 

  • Multiple SS#s
  • Mis-posting of contribution to other employees’ accounts
  • Underpayment & Penalty
  • Reconciliation problems
  • Delays in processing and claim settlement