The National Pension Commission is considering an upward review in the statutory pension contribution rate for employers as part of the ongoing review of the Pension Reform Act 2014.

PenCom Director-General, Omolola Oloworaran disclosed this during a pension consultative forum in Lagos.

Currently, employers contribute a minimum of 10% of an employee’s monthly emoluments, while workers contribute 8%, making a total of 18%. The proposed change aims to strengthen retirement savings and improve long-term financial security for contributors.

Oloworaran said discussions are ongoing with organised labour and the National Assembly. She stressed that the process is still at the consultation stage and that all key stakeholders must agree before any adjustment is made.

The DG also expressed concern over the slow adoption of the Contributory Pension Scheme by state governments. Only eight out of 36 states are currently compliant. She rated progress as poor and called for more political will from governors to prioritise workers’ future.

PenCom is exploring ways to address funding challenges faced by some states and warned against the practice of deducting pension contributions without remitting them to individual retirement savings accounts. The commission remains committed to protecting the rights of contributors and improving the pension system across the country.

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