The Nigeria Social Insurance Trust Fund and Nigeria Employers’ Consultative Association signed an agreement on the implementation and administration of the Employee’s Compensation Act, 2010 (ECA). The agreement will guide the administration of the ECA from 1 January 2017.
The agreement defines “payroll” for the purpose of computing employer’s contribution to the Employee’s Compensation Fund. Under the ECA, employers are required to make a minimum monthly contribution of 1% of their total monthly payroll to the fund. However, the term “payroll” is not defined in the ECA. The base for a fund contribution has, therefore, been a point of dispute between NSITF and employers since the enactment of the ECA.
Read a February 2017 report [PDF 578 KB] prepared by the KPMG member firm in Nigeria
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