Seven days: getting pension remittance right
Late pension is the most common finding in our compliance checks. The fix is mostly a calendar and a habit.
The rule in short
Employers must deduct the employee's pension contribution, add their own, and remit both to each employee's pension fund administrator promptly after paying salaries, generally within seven working days.
Why it goes wrong
In our compliance checks the same three causes appear again and again: no one owns the task, PFA details for new staff are missing, and cash is tight at month end so remittance waits.
A calendar, not a crisis
Put remittance on the same calendar as salaries. Pay day on the 25th means remittance by the 3rd. Make one person responsible and one person check.
Most penalties we see were avoidable with a calendar and one named person.
New staff, new PINs
Collect each new employee's retirement savings account PIN and PFA before their first pay day. If they do not have one, help them open it in the first week.
If you are behind
Do not wait for an audit. Calculate the arrears, set a plan and start paying. Penalties are usually lower for employers who come forward and regularise.
This article is general guidance for employers and not legal advice. Figures are example rates and estimates for planning only. Statutory rates change; we confirm the current rules in writing before you sign.