SOCIAL INSURANCE FUNDS COMPULSORY FOR ALL COMPANIES IN CAMEROON
Caise Nationale de Prevoyance Sociale (CNPS) is the French) appellation for National Social Insurance Fund abbreviated
According to provision of Article 34 of Ordinance No. 73/17 of 22nd May 1972 organizing the National Social Insurance Fund, It is obligatory for businesses and organization to make monthly obligation contribution made by registered organizations on behalf of itself and workers for future benefit.
The NSIF is aim at ensuring worker both civil and corporate are not left empty upon their retirement. In this section of the book, we are going to cover coverage of CNPS, how to register both the organization and workers for CNPS, the contributions rates and based and declaration, payment and other essential regarding CNPS contributions.
The social security contribution payment system in Cameroon is declarative. The employer is responsible for the calculation, settlement and payment of all social security contributions, the employer’s share and the employee’s share deducted on the occasion of each pay on the wages paid or due. In terms of social security contributions. the employer is subject to two fundamental obligations:
Declare your staff and the salaries he pays them online in the Online declaration tab on the sitewww.cnps.cm;
Pay all the contributions due to the CNPS, to approved banks and financial institutions. They must then go to the relevant tax office, with the receipt of payment and the copy of the electronic declaration in order to obtain a receipt for payment of social security contributions.
The employer is subject to the double obligation to declare (register) all the personnel he employs, whether permanent, occasional or seasonal, and to repay all the social security contributions due in this respect. These contributions are calculated on a basis commonly called “the contribution base
THE CONTRIBUTION BASE
The “assessment” of social security contributions is the total amount of remuneration paid or due to workers on the basis of which the contributions are calculated. benefits in kind. Deductions for professional expenses may only be made on these remunerations under the conditions and limits set by a joint order of the Minister of Finance and the Minister of Employment and Social Welfare.
TAX RETURN AND CONTRIBUTION PAYMENTS?
Declaration of income and payment of contributions. The annual income to be declared must be between 435,240 CFA and 9,000,000 FCFA per year, i.e. 36,270 FCFA and 750,000 FCFA per month.
Payment of social security contributions. Voluntary insurance only covers the branch of old- age pension; disability, or death for which the contribution rate is 8.4% of declared annual income. The amount of social security contributions expected over the year = 8.4% of the annual income declared by the voluntary insured.
Amount of social security contributions = 8.4% of annual income 12. The amount of social security contributions due under the reference period is paid by the voluntary insured with approved banks and financial establishments.
CONDITIONS & ELIGIBILITY
According to the law governing CNPS, it is stated that all business and organization are liable for CNPS registration. This states that they have the obligation to register their business or organization within the first month of operation maximum 8days after registration.
This also include the workers (permanent or temporal) who must be register for CNPS with 8days
Base on the insurance coverage by CNPS, the following are set to be deduction rate
• Accident at work:1.75%
• Family Insurance:7%
This implies that the total percentage contribution to be made for CNPS is 17.15% monthly salary of the worker registered at CNPS.
CNPS contribution is the obligation of both the employer (organization or company) and the employee (temporal or permanent). In line with the percentage contribution the employer is table for 12.95% and the employee is liable to 4.2% deducted from
their monthly salary.
CALCULATION OF SOCIAL INSURANCE PAYMENTS IN CAMEROON
Assuming company xyz has register for CNPS and is required to pay CNPS for 5workers with salary of 50,000fcfa each. Compute the amount to be contributed for CNPS and how much is the liability of employees and the employers.
Total salary (based): 50,000fcfa × 5workers=250,000
CNPS computation 17.15% (4.2% and 12. 95% )
Employees Contribution:4.2% *250,000= 10500fcfa
Employers Contribution: 12.95% * 250,000 =32,375fcfa
Total CNPS contribution: 10,500 + 32,375 = 42,875fca
COMPLIANCE DATE AND PAYMENT & PENALTIES
As an obligatory task for the employer, all CNPS declaration is MUST be done on of before the 15th of the New Month. Implies that CNPS for contribution for January must be declared and paid on or before the 15th of February and CNPS contribution for December 2021 must be done on or before the 15th of January, 2022.
Payment of CNPS contribution after declaration is done via direct bank payment to a decimated CNPS account. All payment must be done before the 15th of the new month.
Penalties. As an obligatory services CNPS also charges penalties for late registration and late payment. For late declaration the payment is 10% on the amount to be paid and it in cases by 10% monthly till a maximum of 150%. For late payment: the penalties is 10% for eh first three months and in cases my 3% every three months.
‘’The content of this article is intended to provide a general guide to the subject matter. We insist specialist advice be sought depending on your specific circumstance’’
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