The list below details compulsory deductions on payroll systems for regions serviced on SeamlessPayday
Nigeria:
1. ITF (Employer) Industrial Training Fund (ITF):
Employers with five or more employees or an annual turnover of N50 million are required to contribute 1% of their annual payroll to the ITF. This fund is used for employee training and development.
2. Pension (Employee & Employer):
Employers are excepted to deduct and contribute a minimum of 18% of employees Basic, Housing and Transport (BHT) to the PenCOM through employee’s PFA.
Employee: Employees contribute 8% of their monthly emolument (basic salary, housing allowance, and transport allowance) to their Retirement Savings Account (RSA).
Employer: Employers contribute 10% of the employee's monthly emolument to the employee's RSA.
3. NHF (Employee) - National Housing Fund (Optional for Private Organization)
Employees can voluntarily contribute 2.5% of their monthly basic salary to the NHF, which is managed by the Federal Mortgage Bank of Nigeria (FMBN) to provide affordable housing loans.
4. NSITF (Employer) Nigeria Social Insurance Trust Fund (NSITF):
Employers contribute 1% of the employee's total monthly payroll to the NSITF, which provides compensation to employees for work-related injuries, disabilities, or death.
Ghana
1. Pension (SSNIT) Social Security and National Insurance Trust (SSNIT):
Employee: Contributes 5.5% of their gross salary to the SSNIT.
Employer: Contributes 13% of the employee's gross salary to the SSNIT.
These contributions provide retirement, disability, and survivors' benefits.
2. Bonus Tax
Bonuses paid to employees are taxed separately at a flat rate of 5%.
3. Overtime Tax
Overtime earnings are taxed at five percent (5%) where the overtime amount does not exceed fifty percent (50%) or withhold tax from the excess of that payment at the rate of ten percent if the amount paid exceeds fifty percent of the basic salary of the employee for that month.
Kenya
1. NHIF - National Hospital Insurance Fund (NHIF):
Employees contribute to the NHIF based on their gross monthly income. The contributions range from KSh 150 to KSh 1,700 per month. This fund provides health insurance coverage for the contributor and their dependents.
2. NSSF - National Social Security Fund (NSSF):
Employee: Contributes 6% of their monthly gross salary.
Employer: Matches the employee's contribution with 6% of the employee's monthly gross salary.
These contributions are used for retirement, disability, and survivors' benefits.
3. Housing Levy
Both employees and employers are required to contribute 1.5% of the employee's monthly gross salary towards the National Housing Development Fund, which aims to provide affordable housing.
Rwanda
1. RSSB - Rwanda Social Security Board (RSSB):
Employee: Contributes 3% of their gross salary to the pension scheme.
Employer: Contributes 5% of the employee's gross salary to the pension scheme.
These contributions provide retirement, disability, and survivors' benefits.
2. Maternity - Maternity Leave Benefits:
Employers contribute 0.6% of the employee's gross salary to the Maternity Insurance Scheme managed by the RSSB, which provides paid maternity leave for up to 12 weeks.