ABOUT NASFUND

Nasfund is committed to delivering quality member services and maximizing returns on investments.

Nasfund is one of Papua New Guinea's leading superannuation funds, providing retirement savings and financial security for its members. It manages contributions from employees and employers, investing them to ensure long-term growth. 

contributions

Who can contribute?

Achieve the retirement lifestyle you want down the road with super.

Am I allowed to open a trust account for my children?

No. At this stage an individual is not allowed to open Eda Supa accounts in Trust for children.

Compulsory Contributor
  • Every employer employing 15 or more employees.
  • Every employee receiving pay from above employer.
Voluntary Contributor
  • Every employer employing less than 15 employees but voluntarily elects to contribute.
  • Every employee receiving pay from the above employer and who elects to make voluntary contributions.

defining an employer

Who is an employer?

Any organisation, company, or entity in Papua New Guinea that registers and contributes superannuation funds on behalf of its employees as part of their retirement savings plan. 

Employers play a critical role in facilitating the regular remittance of employee contributions to Nasfund, ensuring compliance with the Superannuation Act of 2000. These contributions are essential for providing financial security to employees upon retirement, and Nasfund partners with employers to manage and grow these funds through strategic investments.

Employer means an entity including
  • An individual
  • A statutory authority or organisation
  • Unincorporated partnership or body or
  • A corporation that employs a person under a contract of service.
Where an employer consists of
  • Different departments
  • Has branches situated in the same place or in different places, all departments and branches will be treated as a single employer.
One or more related corporations will be treated as a single employer where;
  • The total employees of the related corporations are greater than 15
  • The operations of the related corporations have been conducted through, separate legal entities for the purpose of reducing the number of each of the separate entities’ employees below 15
Related corporations have the same meaning as that in the Companies Act 1997 so that where;
  • The other company is its holding or subsidiary company; or
  • More than 50% of the issued shares are held by the other corporation or member of that corporation
  • Business is done in such a way that the separate business of each company cannot be easily identified that those various companies will be treated as a single employer for the purpose of the Act

defining an employee

Who is an employee?

Employee means a person who is a resident in PNG and: 

  • Who receives pay from his employer 
  • Employed or engaged for pay to provide labor or service 
  • Who receives pay from this employer
  • For whom contributions are made
And includes persons employed by or through a contractor or agent. But does not include;
  • Employees who are involved in primary production and employed by an employer who is in the business of growing or processing cocoa, copra, oil palm, rubber, tea, or coffee (exempted employees).
  • Note that employees in this category whose employment may be seasonal so that there are intervals of unemployment are generally not regarded as employees unless they have been employed for more than 24 months.
From what income can contributions be deducted?

The contributions of an employee shall be deducted directly from the employee’s pay by the employer at the time of payment and paid to nasfund within 14 days of the date of deduction. Pay means remuneration of any kind including;

  • Gross salary
  • Wages
  • Leave entitlements
  • Commissions, etc…
That is;
  • Earned by the employee while on duty or on leave with pay
  • Paid or payable in cash to the employee
But does not include;
  • Overtime pay
  • After salary sacrificing of allowances including housing, car and education packaging
  • Bonuses
  • Compensations, etc.
Employer means an entity including
  • An individual
  • A statutory authority or organisation
  • Unincorporated partnership or body or
  • A corporation that employs a person under a contract of service.
Where an employer consists of
  • Different departments
  • Has branches situated in the same place or in different places, all departments and branches will be treated as a single employer.

remitting contributions

When Are The Contributions
Required To Be Remitted?

Employers are required to remit their employees' superannuation contributions to Nasfund within 14 days after the end of each month. This ensures that the contributions are promptly credited to the employees' retirement accounts, allowing for timely investment and growth. Late payments can incur penalties, emphasizing the importance of adhering to this deadline to maintain compliance with the Superannuation Act and protect the financial interests of employees.

Matters to Note

Following matters relating to contributions must be noted;

  • An employer cannot directly or indirectly reduce the salary, wages or other remuneration or benefits of an employee because of its liability to make the contributions
  • The employer’s liability to make contributions is not affected by the basis on which the employee is paid. Be it daily, weekly, fortnightly or monthly
  • If there is any provision in the contract of employment that allows the employer to make a contribution less then the prescribed rate then that provision is void and will not apply
  • Both employers and employees may make additional contributions above the prescribed rate
Breach of Duty

A failure to perform the above duties amounts to an offense for which the employer may be prosecuted. If the company is found guilty and convicted of the offense, the following penalties will be imposed;

Failure to pay Employer Contribution;

  • Fine not exceeding K100,000.00
  • Imprisonment for a term not exceeding 2years
  • Both of the above

Failure to Remit Contributions deducted;
Penalty;

  • Fine not exceeding K500,000.00
  • Imprisonment for a term not exceeding 15 years
  • Both of the above

Note: where the offense continues after conviction, a default penalty fine of K5,000.00 a day will be imposed until the fine is paid

Duty to Contribute

Every employer employing 15  or more employees has the duty to;

  • Pay the employer portion of the contribution in respect of each of its employees continuously employed for 3 months or more
  • Deduct from its employees pay the employee portion of the contribution
  • Remit those contributions
Employers rate of contribution
  • 7% to 31st December 2004
  • 7.7% from 1st January 2005 to 31st December 2007
  • 8.4% from 1st January 2008 onwards
What are the rates of contributions?

Pursuant to Sections 5 and 6 of the Superannuation Regulation 2002 the contributions will progressively increase over the years and settle at 8.4% for employers and 6% for employees in the following manner;

Employer Contributions:
  • Within 14 days of the end of each month

Get in touch

Do you have a question for us?

Please contact us on:
Call: 1588 | Digicel: 7373 3000 | Vodafone: 7676 6000
Email: help@nasfund.com.pg or marketing@nasfund.com.pg

Contact us