Member Contributions
Member’s contributions to LAPF is payable by both employer and the employee whereby the employer contribution is 15% and the employee is 5 percent of his/her monthly basic salary. However, this rate is subject to change basing on the Actuarial valuation of the Fund.
Remittance of contributions
Contributions to the Fund shall be remitted by:
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Cheque to be drawn on any bank |
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By registered mail |
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By telegraphic money transfer or; |
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Through any other mode authorized by the Director General |
Contribution remittance period
Remittance of contribution is compulsory by law and employers are required to remit such contributions within one month after the end of each month on which such contributions relate. Non-compliance by the employer will attract a penalty at the rate of 5% per month of the unpaid amount compounded.
Members and Contributions growth
Members’ contributions increased from TZS 11.84 billion in June 2005 to TZS 29.07 billion by end of June 2008; a growth of 145.59%. Agreements were signed with employers on settlement of contributions in arrears, a measure that has lead to enhanced compliance levels. The details on the trends of membership and contribution growth for the period of four years are highlighted in the table below.
