Archives

Employer and Employee Superannuation Contributions

NOTICE:

EMPLOYER AND EMPLOYEE SUPERANNUATION CONTRIBUTIONS

The Superannuation (General Provisions) Act 2000 (the Act) and Superannuation (Amendment) Regulation 2004 applies to:

  1. Every employer employing or engaging 15 or more employees; and
  2. Every employee engaged in employment by an employer under Paragraph (a) receiving pay, whether they make mandatory or voluntary contributions to an Authorised Superannuation Fund (ASF); and
  3. Every employer employing or engaging less than 15 employees, where the employer elects on a voluntary basis to make employer contributions to an ASF on behalf of an employee; and
  4. Every employee engaged in 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, in respect of each of its employees continuously employed for three months or more, to deduct from the employee 6.0% of the base salary, and 8.4% 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 Sections 76 and 77 of the Act.

It is an offense for an employer not to comply with the Act. The employer who commits an offense will be prosecuted by the Bank of Papua New Guinea (the Bank) under Section 114 of the Act.

Penalty for an offense is a fine of up to K500,000.00 or a term of imprisonment not exceeding 10 years, or both a fine and imprisonment.

The Bank officers will be visiting employers to ensure they are complying with the Act.

If you are aware of any employer not remitting superannuation contribution to an ASF as per the Act, please contact the Employer Contribution Enforcement Unit (ECEU) on telephone number 3227270 or email: [email protected]. Or you may visit the ECEU office, now located at Level 7, Credit House, Cuthbertson Street, Port Moresby.

Authorised by: Mr. Loi M Bakani, CMG Governor Bank of Papua New Guinea

Extension period on the return of paper banknotes

Leave a comment

PUBLIC NOTICE

EXTENSION PERIOD ON THE RETURN OF PAPER BANKNOTES

The paper banknotes (K2, K5, K10, K20, K50 and K100) ceased to be legal tender on 301h June 2013. It cannot be used as money anymore.

The Bank of Papua New Guinea (Central Bank) allowed the public from November 2012 till June 2013 to exchange/return the paper banknotes through the banking system.

The bulk of the paper banknotes have been returned, however, there are still some paper notes in the hands of the public especially in remote rural areas of Papua New Guinea. As a special offer the Bank is extending the return period to 31st December 2016.

The Bank advise people from the rural areas to return/exchange the paper banknotes directly to the Bank of Papua New Guinea. The exchange will be at face value subject to the status of the Note. You may also return the paper banknotes by registered mail to:

The Manager
Banking Department
Bank of Papua New Guinea
PO Box 121
PORT MORESBY
National Capital District

Authorised by; Loi M. Bakani, CMG
GOVERNOR