Employee & Employer Superannuation Contributions
The Superannuation (General Provisions) Act 2000 (the Act) and Superannuation (Amendment) Regulation 2004 applies to:
- Every employer employing or engaging 15 or more employees; and
- Every employee engaged in employment by an employee under Paragraph (1) and receiving pay, whether they make the mandatory or voluntary contributions to an Authorized Superannuation Fund (ASF); and
- Every employer employing or engaging less than 15 employees, where the employer elects on a voluntary basis to employer contributions to an ASF on behalf of the employees; and
- Every employee engaged in employment by an employer under Subsection (3) and receiving pay, who elects on a voluntary basis to make employee contributions to an ASF.
An employer is required, in respect to each of its employees continuously employed for three months or more, to deduct from the employee 6% of the base salary and 8.4% of the base salary from its own funds on behalf of the employee to an Authorized Superannuation Fund (ASF) within 14 days of the date of calendar month as per Section 76 and 77 of the Act.
It is an offence for an employer who does not comply with the Act and non-complying employer will be prosecuted by the Central Bank under Section 114 of the Act.
Penalties for non-compliance are a fine of up to K5000,000.00, or a term of imprisonment no exceeding 5 years, or both a fine and imprisonment.
If you are aware of an employer not complying with this requirement, please contact the Employer Contribution Enforcement Unit on telephone number (+675) 322 7270 or email: slideceu@bankpng.gov.pg
- BPNG Banking Services Scale Down - March 30, 2021
- Employee & Employer Superannuation Contributions - August 13, 2018