How to get your PENCOM Certificate: cost, requirements and application
Employers seeking proof of pension contributions should know how to secure a PENCOM certificate from Nigeria’s National Pension Commission (PenCom). The certificate is issued free of charge through PenCom’s e-Pension Clearance Certificate portal and is typically processed within two weeks if all requirements are met.
Source: UGC
TABLE OF CONTENTS
Key takeaways
- The PENCOM Compliance Certificate (PCC) was enacted by the Pension Reform Act of 2004 and revised in 2014.
- To apply, a business must meet specific basic requirements, such as an Employer Code, group life insurance policy, and an accurate pension remittance records.
- The PENCOM Certificate is available free of charge and can be obtained online through the PENCOM portal.
PENCOM Certificate: All you need to know
The PENCOM Compliance Certificate (PCC) is an official document issued by Nigeria's National Pension Commission (PenCom). PenCom is a government body that manages and secures employees' pension fund assets.
The PCC confirms that an employer is compliant with the Pension Reform Act by:
- Registering employees under the Contributory Pension Scheme (CPS).
- Accurately and timely remitting the required pension contributions for all its employees.
The PCC is a vital document if your company wants to work with the federal government on contracts, tenders, or other jobs.
PENCOM Certificate requirements
PenCom mandates minimum requirements that a business must fulfil before applying. These requirements are verified to ensure adherence to the law. Below are all the requirements need:
Source: UGC
Employee Code
A company must have an Employer Code obtained from Pension Fund Administrator (PFA) first. The code serves as the company's unique pension ID.
Proof of pension payments
The total payment must be 18% of each employee's consolidated salary. The company pays 10% and 8% is deducted from the employee's salary.
Proof of payment
A company that has been in operation for more than three years, must show proof of payments for at least the last three years. If a company is less than three years old, it must show payments from the date of registration until the date of application.
Accurate employee list or schedule
A company must prepare a detailed and accurate schedule of all your employees. The schedule must include the following details for each employee:
- Full name in capital letters
- PENCOM PIN
- Appointment date
- Consolidated salary
- Pension amount paid
- Pension remittance date
- Payment reference number
Company registration proof
The company must provide its profile, which includes the Corporate Affairs Commission (CAC) Certificate attached, to demonstrate it is legally registered in Nigeria.
Clear all penalties
Any issues such as pending or late payments flagged by the system must be cleared before the application.
Group life insurance policy
A company must submit its current group life insurance policy for employees, showing the number of employees covered and the amount assured.
How to obtain a PENCOM certificate in Nigeria?
Source: UGC
PenCom introduced the e-Pension Clearance Certificate application portal to simplify and expedite the application process for PENCOM certificates. To get the certificate, follow these steps.
1. Register the business on the PENCOM website
All businesses must be registered before they can apply for the PENCON certificate. Below are the simple steps to follow:
- Go to the PENCOM website on your browser.
- Navigate to "New User? Register" and click it.
- Enter your Employer Code, which is the unique company ID you received from your Pension Fund Administrator (PFA).
- Fill in company details including your email, phone number, and company address.
2. Log in and upload the required documents
After registering the business, you can log in and upload the required documents. Below is a step-by-step guide.
- Access your account after registering on the e-Pension portal.
- Log in with your Employer Code or username and password
- Upload a complete list of employees' schools, which works as proof that you have paid all the pension contributions for all employees.
- Upload the company's profile, which includes a Corporate Affairs Commission (CAC), which is a legal registration certificate for the business in Nigeria.
- Upload the company employee's group life insurance cover.
- Review your entire application to ensure all information is correct and complete.
- Submit your application and wait for approval.
What is the cost of obtaining a PENCOM certificate in Nigeria?
Source: UGC
The National Pension Commission does not charge an issuance fee for the PENCOM Compliance Certificate. However, the company must pay other costs to be fully compliant with the law, including pension contributions and group life insurance for employees.
Additionally, the company may pay a consultant or agent fee, depending on the size of its company.
How long does it take to get a PENCOM certificate in Nigeria?
The PENCOM Compliance Certificate is typically processed and issued in about 15 working days once a complete and accurate application is successfully submitted. This timeline can be shorter if all your documents are perfect and can be significantly delayed if your application contains errors, missing information, or unpaid penalties.
The PENCOM Certificate is crucial proof that your company is fully compliant with Nigeria's pension laws. The certificate is issued free of charge by the National Pension Commission (PenCom) online, provided all the requirements are met.
DISCLAIMER: This article is not sponsored by any third party. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Legit.ng published an article about the SMEDAN certificate guide. The SMEDAN certificate is an essential document for those who want to formalise their businesses in Nigeria. It will help your business look credible and allow you to get benefits from both the government and private companies.
SMEDA Certificate registration is free and easy to obtain. Registering your business will open opportunities for your business, like getting grants and loans, training, guidance, and help from the government. Discover more about SMEDAN registration here.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
