From 1st January 2015, all employers are required to contribute 10% FNPF for employees. This is an increase in the compulsory contribution from the previous 8%.
The employee (member) contribution remains at 8%. However as per the FNPF announcement earlier this year, employees are also now able to make voluntary contributions. In the past the voluntary contributions could only be made by employers.
This means that the total COMPULSORY contribution will now be 18% (10% by employers and 8 % by employees) and the total contribution can go as high as 30%.
No changes were announced to the PAYE tax rates.
However, while it was not a part of the budget announcement, it is our understanding that FRCA may change the formula used for tax calculation to cater for a few problems with the formula introduced in 2013.
What does this mean for PayMaker users?
As always PayMaker users can be confident that the team at Standss will ensure that their payroll system will continue to meet all FRCA and FNPF requirements.
The 2015 budget changes will require another update to PayMaker before the start of the year.
The development team are already working to implement the FNPF changes. We are waiting to find out if FRCA also requires any changes so that we can keep costs down for customers by doing the updates in one release.
We will email or fax all customers with details of the update in the next few weeks.
In the meantime, if you have any questions, please email us at email@example.com