What are the Statutory Social Insurance programs in Nigeria?

In Nigeria, statutory social insurance programs play a crucial role in providing financial security for employees through various benefits. These programs are mandated by law and include provisions for pensions and other forms of social security. 


What Coverage Do Statutory Social Insurance Programs Provide?

1. Pension Scheme

The Pension Scheme is a vital part of Nigeria’s social insurance programs, aimed at providing retirement benefits to employees. It is applicable to organizations with more than 15 employees.

  • Employer Contributions: Employers are required to contribute 10% of the employee's basic salary to the pension scheme.
  • Employee Contributions: Employees are also required to contribute 8% of their basic salary towards their pension.


2. National Provident Fund (NPF)

The National Provident Fund is another key component of Nigeria’s social insurance framework, designed to provide a form of social security for employees.

  • Employer Contributions: Employers must contribute 1% of the employee's basic salary to the National Provident Fund.

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