1. 10% employer’s contribution
Effective from January 1,Employersaremandatedtopay 10percentas mandatory contribution towards their employee’retirement savings.This Is an increase of 25 per cent from the previous 8 per cent mandatory Employers contribution.
The increase followed government’s announcements to increase employer’s contribution by two per cent in the 2015 Budget.The Increase Will boost savings formembersandenhance theirincomeatretirement. The Fund expects all Employers to comply with the new rule.
2. Additional Contributions
Effective January 1,compulsory members(those informal employment)can choose to contribute more than mandatory 8 per cent contributions from their wages.
Additional Contributions One member can deduct will be maintained at a maximum of 12 per cent of the member’s gross wages.
Additional Contribution Must be paid together with the mandated contribution when due.
The maximum amount of contributions from a compulsory member is30 percent; where 10 percent will be paid by the employer,8 percent by the employee and 12 percent of additional and or excess contributions.Excess contribution is paid by some employers as part of their employees’ benefits paid above the mandatory employer contribution.
Members who make additional contributions towards their FNPF accounts will need to decide on which accounts these deductions are to be directed to;the Preserved and/or General Account.
The General account can be accessed for early or pre-retirement withdrawals whilst the Preserved Account Is reserved for retirement
FNPF Chief Executive,Mr Aisake Taito said allowing members to pay additional contributions towards their FNPF means that members can save more for retirement.
“Our core area of business,again this could not be emphasised enough is to ensure that members have a decent income to live comfortably at retirement.
“The Fund therefore will continue to explore opportunities to secure the future for our
members,”Mr Taito said.