As a full-time worker, you know you are entitled to your salary and other benefits such as pension and health insurance. But when you work part-time, how do you know if you are entitled to receive pension contributions from your employer every month as you get paid your salary?
This article will explain everything you need to know about receiving your pension if you work a part-time job while living in Nigeria.
In this article, the following questions will be answered:
What makes me a part-time worker in Nigeria?
How will my employer calculate my pension benefits?
Am I entitled to receive pension benefits as a part-time employee?
What does it mean to be a part-time employee?
Being a part-time employee means that you are working less than the regular 40 hours per week. Most part-time workers work between 16 to 30 hours per week which are usually spread across three to four days.
It is possible to work a part-time job and experience flexibility. It is usually such that you can work from anywhere as long as you are able to deliver right on time.
The flexible arrangement of part-time work has endeared more people to it, with the number of people working in part-time employment increasing to 18.21 million in Q3 2018 from 18.02 million in Q3 2017 according to the National Bureau of Statistics.
Who can do a part-time job?
Not all jobs allow you to work part-time but it has been discovered that you can successfully do a part-time job if you work as a:
Virtual Assistant
Graphics Designer
Web Designer
Private Tutor
How are my pension benefits calculated?
Employers with 15 or more workers are mandated to contribute to a pension scheme for their employees under the Pension Reform Act signed into law in 2014.
The Act mandates a minimum contribution of 18% of monthly emolument, split evenly between the employee and the employer at 8% each. The minimum contribution is 20% of the monthly emolument if the employer decides to bear all the contributions.
This means that if you earn N100,000 from your part-time job, you are expected to contribute N8,000 to your Retirement Savings Account (RSA) while your employer contributes N10,000 making it a total contribution of N18,000.
And if your employer decides to take on the full contribution, your monthly pension contribution into your RSA will be N20,000 while you are left with the remaining N80,000.
Am I entitled to receive pension contributions as a part-time employee?
The Pension Reform Act of 2014 confers the right to pension on all workers. The law does not discriminate against any kind of worker. As long as you have a valid contract to prove that you are employed by your present employer, you are entitled to receive a pension. According to PenCom, it is mandatory for all categories of employers and employees covered under the Pension Reform Act.
Oak Pensions Limited is a Pension Fund Administrator (PFA) committed to serving you with all the necessary and important information you need to know about pension and retirement benefits in Nigeria.
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