Understanding Mandatory contributions.
Enacted as the mode of contribution by which a member can undertake to guarantee a retirement or any other associated benefits, the mandatory contribution is the sum of money that all workers are liable to pay upon taking up employment.
Currently set at 3% of their gross monthly salary, the employee mandatory contribution is additionally matched by a further 3% contribution that the employer makes on behalf of the employee.
Therefore the total mandatory contribution that an employer makes monthly on behalf of the employee stands at 6%.
By undertaking monthly mandatory contribution for a period of either the last 10 years continuously immediately prior to retirement or for any 20 year period with breaks in between, effective from 1979, a member can qualify for a retirement pension.
If the member fails to contribute for the specified period above, he/she will not be entitled for a monthly retirement pension. However the member will be entitled to a lump sum payment of all contributions accrued for the period he/she has been a member plus interest rate.