- Street / Area: Mohammadu Buhari Way
- City: Lagos
- Country: Nigeria
- Phonenumber: +234 1 291 1105
- Website: http://www.nsitf.gov.ng
- Government & Political parties: Ministries and Departments, Embassies and Consulates, Political leaders, Others
- Divisions: labour
- Listed: October 13, 2017 12:28 pm
- Expires: 302 days, 15 hours
About Nigeria Social Insurance Trust Fund
Over the past fifty years, the NSITF has evolved from a Provident Fund Scheme to a Social Insurance Scheme and, currently the Employees’ Compensation Scheme.
The National Provident Fund (NPF) was established by an Act of Parliament in 1961 to provide a poverty alleviation measure as required by convention No.102 of the International Labour Organization (ILO). The Scheme was targeted at protecting private sector employees (whose employers were then mostly multinationals) from financial difficulties in the event of either old age, cessation of employment, invalidity or death since most employers then did not have such provisions in their employment policies. In a sense, the provident fund scheme was a compulsory savings scheme – i.e. defined contributed scheme. The Act provided for monthly contributions by members at the rate of 6% of basic salary subject to a maximum of N8.00 per month or a sum total of N96.00 per annum to be paid in equal proportion by the employer and the employee. In the event of emigration from the country, employment cessation, old age, invalidity or death, the cumulative amount contributed plus accrued interest (7% as at 1994) calculated on a compound basis, was paid to the contributor or his/her dependent as the case may be. The Act was later amended by another Act of Parliament in 1962 to cover only employees in the private sector who were not covered by the Pension Service Scheme.
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