HR Naija is an interactive business blog run by Nikky the HR Agony Aunt and is dedicated to providing an online platform to share Vacancies, HR advice, Business articles and News with a focus on Nigeria.
Wednesday, 28 March 2012
ECS: NSITF THREATENS TO SANCTION EMPLOYERS WHO ARE NOT COMPLYING WITH THE ACT
MANAGEMENT of the Nigeria Social Insurance Trust Fund, NSITF, has called on employers in the country to, without delay, comply with the provisions of the Employees’ Compensation Act, ECA, saying it will not hesitate to apply the necessary sanctions as provided by the Act on any recalcitrant employer. In a statement, the fund drew the attention of employers to the commencement of the implementation of Employees, Compensation Scheme, ECS, a product of ECA and the payment of contributions as provided by the ECA 2010. According to NSITF, “the scheme provides guaranteed and adequate compensation for all employees or their dependants for any death, injury, disease or disability arising out of or in the course of employment. The scheme also offers rehabilitation and vocational training services to employees with work related disability with a view to bringing such employees back to work. In specific terms, the following compensations are payable under the Act: Compensation for death – payable to dependants of the deceased employee’s child/children, widow/widower etc., Compensation for injury – temporary/permanent, partial or total disability, Compensation for mental stress, Compensation for hearing impairment, Compensation for occupational diseases (list of diseases up-dated from time to time), Health care benefit, i.e medical expenses are also paid for under the scheme. Compensation is also payable for injuries sustained by employees outside the normal working place where the business of the employer extends beyond the usual work place or the nature of employment is such that the employee is required to work both in and out of the usual work place.” “For the avoidance of doubt, we hereby reiterate that the Employees, Compensation Act (ECA 2010) repealed the work men’s Compensation Act 2004. The Act came in to effect on 17th December, 2010 and from that date, the Workmen’s Compensation Act (WCA) ceased to be the applicable law on the subject of employees compensation for work injury or Occupational diseases.
Culled from article by Victor Ahiuma Young (Vanguard Newspaper, March 28th 2012
Don't forget readers, remittance for contributions is calculated as 1% of payroll for the first two years it is implemented. Not remitting Contributions under the Employee's Compensation Act 2010 and the Pension
Reform Act (as amended) can attract a penalty
of 10% of the un-remitted 1% monthly payroll employee contribution to NSITF.
As an employer, your NSITF remittances are tax deductible expenses in Nigeria.
Please note that the
Employee's Compensation Act 2010 did not abolish the Group Life Policy required
under the Pension Reform Act (as amended). Employers should therefore continue
pension contributions for their employees;
out a Group Life Policy for their employees;
to NSITF 1% payroll as employee's compensation contribution.