Employers failing to pay contributions to be prosecuted: Bank

EMPLOYERS who fail to comply with the Superannuation Act 2000 and Superannuation Regulation 2004 to remit employee contributions to an authorised superannuation fund (ASF) will be prosecuted.
According the Bank of PNG (BPNG) in a newspaper public notice on Friday, the penalty for employers who do not comply is a fine up to K500,000 or a term of imprisonment not exceeding 10 years or both.
“The Superannuation (General Provisions) Act 2000 (the act) and the Superannuation (Amendment) Regulation 2004 applies to:

• EVERY employer engaging 15 or more employees;
• EVERY employee engaged in employment by an employer under paragraph (a) receiving pay, whether they make mandatory contributions to an authorised superannuation Fund (ASF) on behalf of an employee;
• EVERY employer employing or engaging less than 15 employees, where the employer elects on a voluntary basis to make contributions to an ASF on behalf of an employee; and,
• EVERY employee engaged in an employment by an employer under subsection (c) and receiving pay, who elects on a voluntary basis to make employee contributions to an ASF.

An employer is required to deduct six percent of the base salary of its employees continuously employed for three months or more.
It is also required to deduct 8.4 per cent of the base salary from its own funds on behalf of the employee and remit to an ASF within 14 days of the date of the calendar month as per section 76 and 77 of the Act.
“It is an offence for an employer not to comply with the Act,” it said.
“An employer who commits an offence will be prosecuted by the Bank of Papua New Guinea (the bank) under section 114 of the Act.”
BPNG said its officers would be visiting employers to ensure they were complying with the Act.
It also urged those with information on employers not remitting employee contributions to an ASF to report to its Employer Contribution Enforcement unit on 322 72 70 or email [email protected] or visit their office.