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Detailed Functional Requirements

Statutory Contributions — Detailed Requirements

Nigeria's wage contributions — Pension (PRA 2014), NHF, NHIS, NSITF — as computed by the pay run. No statutory rates are hard-coded: every scheme is a contribution-group entry whose configured percentage (or fixed amount) the engine applies. The statutory types themselves are seeded master data (paye, pension, nhf, nhis, nsitf); the rates are tenant configuration.

5
Seeded schemes
5
Requirements
0
Hard-coded rates

Pension

Typically employee 8% / employer 10% of emoluments — configured, not coded.

NHF

National Housing Fund — typically 2.5% of basic, employee-paid.

NHIS / NSITF

Health insurance and employee compensation schemes — employer-weighted, configurable.

Tax relief link

Employee shares feed PAYE relief ×12, uncapped, via full-month twin amounts.

Statutory · Detailed

How contributions resolve STA-R

An employee's statutory treatment is driven entirely by their assigned contribution group. When the employee is added to a run (or resynced), one contribution row is written per scheme in the group, amounts already computed.

FR-STA-R01Must
When an employee is added to a run, the system SHALL create one contribution record per statutory type in their contribution group, carrying the scheme name, who pays (employee / employer / both), the employee amount on the prorated base, the unprorated full-month employee amount, and the employer amount.
Acceptance criteria
  • An employee with no contribution group produces no contribution rows and no statutory deductions.
  • The prorated amount is what net pay and the journal use; the full-month amount ×12 feeds the PAYE statutory relief — a mid-month joiner's relief is never understated.
  • Rows are deleted and rebuilt on resync, and cascade-deleted with their line.
FR-STA-R02Must
The contribution base for a scheme SHALL be the sum of the employee's active items tagged with that statutory type; when no item is tagged, the default base — basic salary plus all allowances — applies. The base is prorated for partial months before rates apply.
Acceptance criteria
  • Tagging lets schemes use statutory bases: e.g. NHF on the basic-salary item only, pension on basic + housing + transport items (the PRA "emoluments" base).
  • An untagged scheme falls back to basic + allowances.

Statutory · Detailed

The Nigerian schemes STA-S

Five statutory types are seeded for Nigeria. Their legal rates are entered as group configuration — the table below shows the statutory reference rates operators are expected to configure.

SchemeStatutory referenceTypical configuration
Pension (PRA 2014)Employee 8% + employer 10% of monthly emoluments (basic + housing + transport)PERCENTAGE, paid by both, base via tagged items
NHF2.5% of basic salary, employee-paidPERCENTAGE, employee, tag the basic-salary item
NHISHealth insurance (commonly employer 10% / employee 5% where operated)PERCENTAGE, per employer policy
NSITF1% of total emoluments, employer-only (Employee Compensation Act)PERCENTAGE, employer
PAYEIncome tax — computed by the tax engine, not the contribution pathSee PAYE
FR-STA-S01Must
The system SHALL seed the Nigerian statutory types (paye, pension, nhf, nhis, nsitf) as master data at boot and SHALL apply whatever rates the tenant configures per scheme — it does not validate them against statute.
Acceptance criteria
  • Seeding is idempotent; configuration references the seeded types.
  • Mis-configured rates (e.g. pension at 5%) are applied as entered — statutory correctness is an operator responsibility (see Known gaps).

Statutory · Detailed

Rate computation STA-C

Each side (employee / employer) of a group entry carries mandatory + voluntary components and a value type. The value type alone decides the math — there is no per-scheme override.

FR-STA-C01Must
The system SHALL compute each side's amount by the configured value type: PERCENTAGE → base × (mandatory + voluntary)%; FIXED → the flat amount (÷12 when the entry's frequency is annual); amounts rounded to 2 decimals.
Acceptance criteria
  • Base ₦1,000 at 5% + 5% voluntary → ₦100.
  • Fixed ₦1,200 annually → ₦100 per month.
  • paidBy decides which sides count: employee/both → employee deduction; employer/both → employer contribution.
FR-STA-C02Should
Employer-side amounts SHALL never reduce employee pay — they accumulate into employer cost and the run's employer totals only, and are excluded from the salary journal.
Acceptance criteria
  • employerCost = gross + employer contributions.
  • Employer legs are stripped from the posted journal (settled separately — see GL gaps).

Statutory · Detailed

Business rules

  • Rates are data, not code. The engine ships zero Nigerian rates; groups hold them. This makes Budget-driven rate changes an admin edit — and rate correctness an operator duty.
  • Twin amounts per row: prorated (net pay + journal) vs full-month (×12 PAYE relief). Never conflate them.
  • Avoid the TABLE value type. It exists for schedule-based markets and returns zero for every Nigerian scheme — a scheme configured as TABLE silently contributes nothing.
  • Employee shares are also tax reliefs — pension/NHF employee deductions reduce PAYE chargeable income, uncapped.
  • Age and nationality play no role in the contribution computation — rates apply uniformly per the group configuration.

Statutory · Detailed

Known gaps

No statutory rate enforcement or seeds. No default Nigerian contribution group ships, and configured rates are not validated — a tenant can silently under- or over-deduct pension/NHF. A seeded "Nigeria statutory" group with reference rates would close this.
TABLE is a silent zero for Nigerian schemes. Choosing the table value type for pension/NHF computes 0 with no warning.
No pension caps or eligibility thresholds. The PRA minimum-employee-count and salary-floor rules, and NHF income thresholds, are not modelled — every enrolled employee contributes per the configured rate.
No remittance schedules or files. Amounts are computed and reported per run; PFA schedules (per-employee pension uploads), NHF remittance and NSITF filings happen entirely outside the system.