PENCOM Certificate and when a company is eligible for one

PENCOM Certificate and when a company is eligible for one

February 07, 2020

PENCOM certificate is given by the National Pension Commission (PENCOM) which is a body that regulates and supervises pension matters in Nigeria. The body was created to ensure the effectiveness of retirement benefits disbursed in accordance with the law.

A PENCOM certificate is given as evidence of compliance with the Pension Reform Act. Accordingly, the Pension Reform Act states that any Public servant in the public sector and also every individual in the employment of a private organisation of at least three persons (Section 2(2)(3) of the Pension Reform Act 2014) must be part of the PENCOM scheme. Hence, the employers are required to pay 10 percent of the monthly incomes of the employee and 8% from the employee income. The PENCOM certificate is given to companies upon application to show that they have complied with this aspect of law as required by the Pension Reform Act (2014).

The eligibility for a company to qualify for this certificate is as stated below;

  1. Certified list of all the employees in the organisation to be done by an authorized agent.
  2. Up to date statement on the payment of the specified rate of 10% by the employer and 8% by the employee of monthly emolument which is the monthly contribution.
  3. There must be evidence of monthly remittances of all employees in the company in the last three fiscal years for a company in existence for more than five years and for companies that have not been in existence for more than three years, from the date of incorporation.
  4. There must be evidence of Life insurance policy for the employers.
  5. Evidence of remittance of outstanding pension contribution and penalties where applicable.

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

More Articles

Search

Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • What additional documents do I require to file my Annual Returns?
  • Must my Company Secretary be a Lawyer?

    Although it’s ideal to have a lawyer as a company secretary, it is not compulsory for small private businesses.

  • What is an execution clause in a contract?

    This is the section in which the parties sign the contract or agreement.

  • If I have NAFDAC Registration number, do I still need SON registration number?

    SON Product Registration scheme is mandatory for all SON’s regulated products as mandated by SON Act 56 of 1971, 20 of 1984, 18 of 1990 as amended.

    This is irrespective of the registration done by NAFDAC

  • What is data protection?

    Data protection is a legal process of protecting sensitive data.

  • What is the difference between licensing and assigning a patent?

    Licensing a patent means granting permission to another individual or organisation to make, use as well as sell the creation that has been protected by patent.

    A patent assignment on the other hand, is a finished exchange of patent rights starting with one individual then onto another person.

  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • How many shareholders do I need to start a company?

    A minimum of one (1) adult shareholder is required to form a company.

  • Does Trademark registration protect my website domain name?

    Yes, it does.

Call Us Now on +234 901 719 0079 Chat on WhatsApp