ICANBusiness LawEmployment Law2022

Mr. Kunle is employed by Zenith Logistics Ltd with a monthly compensation breakdown as follows: Basic Salary of ₦250,000, Housing Allowance of ₦150,000, Transport Allowance of ₦100,000, and Utility Allowance of ₦50,000. Under Section 4(1) of the Pension Reform Act 2014, what is the mandatory minimum monthly pension contribution payable by Zenith Logistics Ltd on behalf of Mr. Kunle?

A₦40,000
B₦50,000CORRECT
C₦55,000
D₦90,000
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Under Section 4(1) of the Pension Reform Act 2014, the employer's minimum contribution is 10% of monthly emoluments, defined as the sum of basic salary, housing allowance, and transport allowance (₦250,000 + ₦150,000 + ₦100,000 = ₦500,000). Thus, 10% of ₦500,000 equals ₦50,000. Utility allowance is excluded from the minimum statutory pension base calculation.
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