NSITF And NECA Agree The Basis For Employee Compensation Contributions

The Nigeria Social Insurance Trust Fund (NSITF) recently entered into an agreement with the Nigeria Employers' Consultative Association (NECA) on the basis for calculating contributions under the Employees' Compensation Act (ECA) 2010.

The ECA was signed into law in January 2011 and gazetted in July 2011. This had caused a controversy in the past with respect to the effective date for the commencement of the law. NSITF and NECA had previously agreed to a forbearance of outstanding contributions for the period from 1 July 2011 to 31 December 2011 for members of NECA.

To further clarify issues around the interpretation of the ECA, NSITF and NECA recently entered into a new agreement effective from 1 January 2017.