Question Tag: Employee Contributions

Tier 1 and 2 – Mandatory pension schemes:

• Worker contributes 5.5% of their basic salary.
• Employer contributes 13% of the worker’s basic salary.
• Total contribution: 18.5% of the worker’s basic salary.
• Out of the 18.5%, 13.5% is remitted by the employer to SSNIT within 14 days after the end of the month, and 2.5% of this amount goes to the NHIA for the worker’s health insurance.
• The remaining 5% is sent to the mandatory Second-Tier Occupational Scheme, which is privately managed by trustees approved by NPRA.

Tier 3 – Voluntary pension scheme:

• The amount to be contributed by the employee and/or employer is not fixed.
• However, the total contributions made by the employee and employer should not exceed 16.5% of the employee’s basic salary for tax relief purposes