The Contributory Pension Scheme (CPS) under Nigeria’s Pension Reform Act requires both employees and employers to contribute a fixed percentage of monthly emolument into the employee’s Retirement Savings Account. This calculator applies the standard PenCom rates so HR teams and employees can confirm the correct remittance.
How it works
The contribution base — emolument — is defined by PenCom as:
emolument = basic salary + housing allowance + transport allowance
The standard rates are then applied:
- Employee: 8% of emolument
- Employer: 10% of emolument
- Total to RSA: 18% of emolument
You enter the emolument directly (or your basic + housing + transport components add up to it), and the tool returns each contribution and the combined total.
Example
For a monthly emolument of ₦300,000:
- Employee = 8% × 300,000 = ₦24,000
- Employer = 10% × 300,000 = ₦30,000
- Total remitted to RSA = ₦54,000 per month.
Notes
Where an employer chooses to bear the full contribution, it must pay at least 20% of emolument and the employee pays nothing. The 8% / 10% split shown here is the statutory default. Contributions are paid into a Retirement Savings Account managed by a licensed Pension Fund Administrator.