Employers' Responsibilities

Contribution

Learn more about the mandated Employers' contribution responsibilities towards contributing to the welfare of their Employees' retirement. 

 Go to Employers' Responsibilities

Prescribed Contribution Rates for Employer

Salary Group

Employer contribution rate

$500.00 and below

Set at $57.50

$500.01 - $1,500.00

10.5% (min $57.50)

$1,500.01 - $2,800.00

9.5%

$2,800.01 and above

8.5%

Example of contribution amount for Employer and Employee:

Example salary

$400.00

  • Employee's contribution (8.5%):
  • $400.00 x 8.5% = $34.00
  • Employer's contribution minimum:
  • $57.50

Example salary

$1,000.00

  • Employee's contribution (8.5%):
  • $400.00 x 8.5% = $85.00
  • Employer's contribution (10.5%):
  • $1,000.00 x 10.5% = $105.00

Example salary

$2,500.00

  • Employee's contribution (8.5%):
  • $400.00 x 8.5% = $212.50
  • Employer's contribution (9.5%):
  • $2,500.00 x 9.5% = $237.50

Example salary

$3,000.00

  • Employee's contribution (8.5%):
  • $400.00 x 8.5% = $255.00
  • Employer's contribution (8.5%):
  • $3,000.00 x 8.5% = $34.00

Note:

  1. The SPK contribution rate is rounded to two decimal points.

  2. There is no longer a maximum mandatory contribution cap for SPK. The contribution is based on the full amount according to the prescribed rates for Employees and Employers, with a minimum contribution of $57.50 for Employers.

  3. For Employees deferring to join SPK, the contribution rate will be adjusted according to the SPK contribution rate, which is 8.5% of the Employee's salary without a minimum or maximum contribution limit.

    4. Employer will contribute in accordance to rates stated in the above table and the amount of contribution will be distributed 5% to Employee’s TAP Account and the remaining balance to Employee’s SCP Account.

Definition of Wages and Deductible Remunerations

Remuneration in money due to an Employee for the work done.


Basic salary

For Employee who does not have basic salary or any remuneration receive based on work done,

such as

Commission, Allowance or

Apprentice Allowance

Non-deductible Remunerations


• Backdated Increment

• Acting Allowance

• Special Allowance

• Living Allowance

• Overtime Allowance

• Housing Allowance

• Medical Allowance

• Amenities Allowance

• Travelling Allowance

• Payment for supply of any food, fuel, light and water

• Gratuity Payment (Baksis)

• Service Charge

• Retrenchment, lay off or termination benefit

• Unexpected expenses by the type of employment

• Contribution Payment to a pension fund or provident fund

Should the remuneration is not listed above, you may email the details of the remuneration via enforcement@tap.com.bn.

Voluntary Contribution


Both Employer and Employee may contribute more into the scheme voluntarily apart from the mandatory contribution. The additional contribution from Employer will be credited into the SPK Member Account which member can withdraw before retirement.


For voluntary contribution made by Employer for the Members who deferred joining SPK, the voluntary contribution will go to SCP account automatically. The balance in the SCP account will be transferred to SPK Retirement Account for retirement purpose when Member is converted to SPK after the withdrawal of TAP account at 55 years old.

FAQ

Frequently Asked Question

No, Employers do not need to re-register their employees for SPK. Once the SPK is implemented, Employees will be automatically converted into SPK. However, for Employees who have chosen to defer their participation and are aged between 50 to 59, they will be automatically converted into SPK after they make their TAP withdrawal at the age of 55.

No. Employers are not required to register their Employees to SPK. Members from 50 – 59 years old are given options to join SPK immediately of defer conversion to SPK. If the Member join immediately to SPK, their TAP and SCP Accounts will automatically be converted to the new SPK Account. If the Member chose to defer joining SPK, their TAP and SCP Accounts will remain active until they withdraw their TAP55. Employers should refer to their Employees’ options to avoid wrong contribution being paid. This also will be reflected in e-Amanah when you want to pay your Employees’ contribution.

Yes. Employees under the age of 60 currently receiving Government Service Pension and returning back to work in the public or private sector are required to be registered and contributed to SPK.

No, Employers do not need to register these Employees. Employees who have chosen to join SPK immediately will be automatically converted into SPK. Meanwhile, those who have not made any decision will remain in the TAP and SCP schemes.

There is no longer a maximum mandatory contribution cap for SPK. The contribution is based on the full amount according to the prescribed rates for Employees and Employers, with a minimum contribution of $57.50 for Employers.

Contribution rates will be revised in accordance to SPK contribution rate of 8.5% with no capping. The contribution will go to the Member’s Account and full withdrawal under this account can be made once Member reaches age 60 years old.

After the implementation of SPK in July 2023, the contribution rate will be adjusted according to the SPK contribution rate, which is 8.5% of the Employee's salary without a minimum or maximum contribution limit. The contribution rate from the Employer will also be based on the Employee's salary range. However, for Employees between the ages of 50 and 59 who have not decided to participate in SPK, they will remain in the TAP scheme with a contribution rate of 5% for both employees and Employers. These Members will be automatically converted into SPK after they make their TAP55 withdrawal (if they continue to work) following the SPK contribution rates.

After Member withdrawn TAP55, it is consisting of Member and Employer contribution. After the Member is converted to SPK, this has effect to their SPK Annuity amount for their retirement. In order to earn the optimized SPK Annuity amount, Member has the option to top-up the Employer contribution that has been withdrawn.


However, top-up is not mandatory and Member will still receive better SPK Annuity during their retirement.