Pension, NHF, NSITF and ITF
Besides PAYE, Cadre calculates four other statutory contributions. This page explains what each is worked out on and what you need to record so the schedules can be filed. The rates are set in law, and Cadre holds them in dated rate sets and applies them for you.
Who can see statutory figures in payroll runs: Owner, Payroll admin, Payroll approver.
Pension
Section titled “Pension”Under the Pension Reform Act 2014, the employee and the employer each contribute a share of the employee’s pensionable pay to the employee’s retirement savings account.
- What it’s worked out on: basic salary, housing and transport, which is the minimum the Act sets. The statutory role of each pay component decides whether it counts. See Set up pay.
- On what is actually paid: in a part month, the contribution is on the prorated pay.
- Not on benefits in kind: they aren’t paid, so they never count towards pension.
- Voluntary contributions: a person can contribute more than the statutory amount. Enter it as Monthly voluntary pension on their tax profile. It’s deducted from their pay, paid with their pension, and reduces their taxable income.
The employee’s contribution appears in the register as Pension (EE). The employer’s contribution is part of Employer cost, and you can show it as Employer pension.
Each locked run produces one pension schedule for each pension fund administrator. It shows the legal employer’s TIN and pension employer code, and each person’s RSA PIN, gross pay and their employee, voluntary and employer contributions.
To file it, each person needs a Pension fund administrator and RSA PIN on the Pay and statutory tab of their profile, and the legal employer needs its pension employer code under Settings → Statutory registrations. Anything missing is listed as an exception.
National Housing Fund (NHF)
Section titled “National Housing Fund (NHF)”NHF is an employee contribution on basic salary.
- Opt-in: NHF has been voluntary for private-sector employees since the Business Facilitation (Omnibus) Act 2022. Cadre deducts it only for people whose tax profile has National Housing Fund switched on.
- What it’s worked out on: basic salary only, on what is actually paid. Benefits in kind never count.
- Tax: NHF reduces taxable income.
The NHF schedule lists each contributing person’s NHF number, gross pay and contribution, under the legal employer’s NHF employer number. A missing NHF number or employer number is listed as an exception.
NSITF is the employer’s contribution under the Employees’ Compensation Act 2010. It isn’t deducted from anyone’s pay.
- What it’s worked out on: the total monthly payroll. Cadre takes this as the run’s total gross pay.
- The NSITF schedule shows the contribution on the total, with a figure for each person for reference. The per-person figures may differ from the total by rounding.
- The legal employer needs its NSITF employer number recorded.
NSITF appears in the payroll journal and the payroll cost report.
The Industrial Training Fund contribution is an annual employer contribution on the payroll. It applies only once the employer meets the law’s threshold, by number of employees or by annual turnover.
Cadre doesn’t deduct ITF from pay or produce a monthly ITF schedule, and it isn’t included in a run’s cost summary. The payroll cost report shows ITF building up month by month at the ITF rate on gross pay, once the legal employer has at least the threshold number of employees at the end of the month. Cadre doesn’t hold turnover, so it applies only the headcount test.
Record the legal employer’s ITF registration number under Settings → Statutory registrations.
Due dates
Section titled “Due dates”Pension, NHF and NSITF each have their own deadline for payment to the authority. See Remittances.