PenCom automates penalties for employers delaying pension remittances

The National Pension Commission (PenCom) has implemented an automated system to calculate penalties for employers who delay remitting workers' pension contributions, in line with the Pension Reform Act to strengthen compliance. The new system, which was announced during the 2026 Annual PenCom Media Conference, allows employers with outstanding penalties to obtain Pension Clearance Certificates only after settling their liabilities.

This could impact their eligibility for government contracts and other business transactions requiring proof of pension compliance. PenCom's Director-General, Omolola Oloworaran, emphasized that the initiative aims to ensure employers meet their obligations to workers under the Contributory Pension Scheme, even as she noted that some employers continue to withhold contributions or delay payments despite regulatory interventions.

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