There are compulsory superannuation contributions for PNG citizen employees to any Authorised Superannuation Fund (ASF) such as Nambawan Super.
The Superannuation contributions consist of two components based on the employee's salary:
- By default, employees contribute 6% of their salary (deducted after salary and wages tax is deducted) and;
- The employer contributes 8.4% of the employees salary (before salary & wages tax is deducted), and is paid by the employer from its own funds (i.e. it not is not factored into the remuneration package of the employee).
Contributions are remitted by the employer at the following rates, as a percentage of gross base salary (excluding overtime, bonus, and commission):
- 6.0% employee contributions (i.e. after-tax contributions).
- 8.4% employer contributions (i.e. not taxed contributions).
Voluntary Contributions
Members can also make additional voluntary contributions above the minimum 6% of their fortnightly gross salary to the Fund to maximize their superannuation savings. Read more about Voluntary Contributions here.
Employer Boost
The employer may also increase their portion from the minimum 8.4% if they wish to do so. This is known as Employer Boost. For example, some employers chose to contribute at a rate of 10% toward their employees superannuation, others 12.5% etc.
Employee contributions for non-citizen employees
Superannuation contributions are not legally required for non-citizen employees i.e. expatriates, but may be made on a voluntary basis by the employee to an Authorised Superannuation Fund such as Nambawan Super, through a Choice Super account.
Papua New Guinea does not have a social security system. The Government has made it mandatory by legislation for Papua New Guinean employees to contribute towards their superannuation primarily for access upon retirement.
PNG's superannuation industry is governed by the Superannuation (General Provisions) Act 2000. The Superannuation (General Provisions) Act requires that each person employed for a period of three months or longer must be a contributing member of an Authorised Superannuation Fund, such as Nambawan Super.
The Superannuation (General Provisions) Act 2002 provides for both employee and employer contributions to be remitted to an Authorized Superannuation (ASF) on a regular basis. Employers must remit their employer contributions within 14 days of the end of each month and employee contributions are required within 14 days of the date of deduction.
If you're eligible for and are contributing towards superannuation, every time you get paid your employer pays a set amount of money into a superannuation account in your name. The money is then invested by the Trustee of the Fund into areas such as shares, property, government bonds, and cash deposits.
You can only access your super when you reach 'retirement age' and retire, or when you reach the preservation age of 55, or 25 years of service. There are also some other limited circumstances where you can access your super savings early.
