Important Facts About the Contribution Process

While there are many important facts about the process of paying contributions, the following are very key for every employer and employee to know:

  1. The National Pension Scheme is contributory; meaning that workers covered by the scheme are supposed to make monthly contributions through their employers in order to garner rights that entitle them to benefits provided by the scheme.
  2. Presently the monthly contribution rate is pegged at 10 percent of a worker’s gross monthly earnings subject to the prevailing contribution ceiling in the calendar year in which the worker earned the income. The contribution ceiling is revised annually and the revision takes effect from January of each year.
  3. The following constitute gross earnings for NAPSA purposes:

Basic Salary plus:

  •  Leave pay
  • Commuted days
  • Overtime
  • Bonus
  • All Allowances (House, transport, uniform etc.)
  • Gratuity


  1. The employer is however, mandated to deduct only half of the worker’s monthly payable contribution from the employee’s earnings and then add an equal portion.
  2. Employers are also required to remit workers’ monthly contributions within 10 days of the end of the calendar month to which the earnings relate. i.e. contributions for salaries earned in the month of July should be paid by 10th The due date is the end of each month; the extra 10 days are just a grace period. Any contribution including underpayment that is not paid within 10 days of the end of the calendar month to which it relates attracts a penalty equal to 20 percent cumulative for each month or part thereof the contribution remains unpaid.
  3. Alongside the payment of contributions, employers are mandated to provide monthly returns that reflect the workers’ full names, social security number, national registration card number, gross earnings and the respective employee and employer contribution.
  4. A return is deemed to be a good return if it has the following:
  • Correct NRC numbers (and correct format)
  • Correct Social Security numbers (and correct format)
  • Full Names
  • Must reflect the gross wage.
    • Must use the correct ceiling where applicable
  1. Failure by an employer to submit monthly returns reflecting the above details result in delays in posting contributions to members’ accounts including possible posting of contributions to incorrect members’ accounts.
  2. The ideal and acceptable mode of filing your returns is the electronic format. This format has the following benefits:
  • Better Record Management – ease filing & retrieval of data
  • Error free assessments
  • Faster and error free crediting of members’ accounts
  • Quicker processing cycle for Benefits
  1. The ultimate effect of submission of poor monthly returns by employers is that it renders the Authority’s desire to process claims within a reasonable time frame unattainable.
  2. The Authority has principally two payment channels through which employers can remit contributions to the scheme. The first channel is the Over the Counter (OTC), where employers have to physically visit a NAPSA office to make payment. The second channel is the Electronic payment option. Under this option, employers can either send a hardcopy instruction to their bank or initiate the payment from their Bank internet payment platform.
  3. The Authority is further in the process of enhancing the electronic payment channel in order to integrate the payment of contributions with monthly returns submission. It is hoped that the new payment channel will address the current challenge of poor information provision by employers through the automation of data validation before the system accepts the payment for contribution.
  4. In order to improve the quality of contribution data the Authority holds for each contributor, workers are encouraged to regularly check the status of their contributions by visiting a NAPSA office or checking via the NAPSA online platform visa our website ( or using their mobile phone by either downloading the smartphone app or dialing *677#.
  5. It is further an employee’s obligation to report any errors on the statements in order to ensure that when s/he becomes eligible for a benefit, their claim is not only settled in good time but that the correct amount is paid.

Important Message to All Workers

Are you a contributor to NAPSA?
Do you have a Social Security No.?
Do you have a Social Security Card?
Do you have more than one Social Security number?
Is your Social Security number quoted correctly on our Employer’s record and payslip?
Do you have your beneficiary information updated?

If your answer to any of the questions above is NO, then kindly contact the nearest NAPSA office or our contact center (on 0211-395-677 or for advice and remedial action. Be alert to your Social Security Responsibilities for a better service from NAPSA.