Compliance and Contribution

In order to facilitate the collection or payment of contributions, the Seychelles Pension Fund Act provides inter alia for the deduction at source by an employer of the worker’s contribution, the monthly payment into the fund by the employer of both the worker’s and employer’s portion of the contribution by the 21st day of the following month.

Mandatory contribution

As from the 1st January 2014  the rate of contribution is 2% by employer for each employee on a full basis or part time basis and 2% by the employee making a total contribution of 4% of the employee’s monthly gross salary.

The rate of contribution for self-employed persons is 4% of their monthly gross salary or SR174 whichever is the greater or where no salary is declared or taken the pension contribution shall be 4% of average gross yearly profit declared or where no such profit has been made the percentage contribution shall be 4% or SR174 whichever is the greater of the prevailing minimum wage per month for 45 hours a week at the time of which is currently at SR4339 per month.

The task of the Compliance Unit in respect of payment of contribution is being undertaken by the Seychelles Revenue Commission (SRC) under Sections 2 and 13 of the Seychelles Revenue Commission Act 2009. In conjunction with the SRC the Seychelles Pension Fund’s Compliance Monitoring Unit, is responsible to implement the detection systems referred to below and maintain a performance indicator based on Employer default rate of 5% for those in arrears with payment by one month and the average of 3% to 5%for defaulters in arrears by more than one month.

 

Detection Systems

Type

Late Payment/ Underpayment System

Complaint  System

Survey System

Purpose

To detect late payment and significant decrease in monthly contributions

To detect omission and underpayment

To detect omission and underpayment

Method

System setup cases monthly for recovery actions

Feedback from various sources, eg employees, govt depts, etc.

Surveys & spot checks by industry types employer cohort, etc.

The role of the Seychelles Pension Fund’s Compliance Monitoring Unit is to enable the effective collection of pension contributions and daily remittance to the Fund, encourage self-employed persons to make pension contribution to qualify for a pension, follow-up on referral cases received from Benefit Section.  It also ensures payment of outstanding contribution and that the pension report by the respective employees are sent on time to the Fund for the allocation of contributions to member’s accounts.