Many business owners trying to get their PENCOM Compliance Certificate hit a wall early in the process. They log onto the portal, start filling out the form, and discover they need something called an Employer Code. That code only comes from one place: a Pension Fund Administrator. Without it, the application cannot even begin.
Linking your company to a PFA is not a complicated process. But it does have a specific sequence, and skipping steps or going to the wrong place first wastes time you may not have.
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What Is a PFA and Why Does Your Company Need One?
A Pension Fund Administrator is a licensed institution authorised by PENCOM to open and manage Retirement Savings Accounts on behalf of employees. There are several PENCOM-licensed PFAs operating in Nigeria, including names like Stanbic IBTC Pension Managers, ARM Pension Managers, Leadway Pensure, and Access Pensions, among others.
Your company does not hold pension funds directly. Instead, you remit contributions to the PFA, which manages the RSAs of your individual employees. The PFA then generates your Employer Code, a unique identifier that ties your company to the pension system and makes every subsequent PENCOM process possible.
<citation index=”5-1″>Employee RSA PINs are attached to their respective employer codes in PENCOM’s database.</citation> This is why the employer code sits at the centre of the whole compliance process. Without it, there is no way to link employee records to your company in the system.
Step 1: Choose a Licensed PFA
Your first step is selecting a PENCOM-licensed Pension Fund Administrator. Employees are free to choose their own PFA individually, but for employer code purposes, your company needs to approach at least one PFA to initiate the relationship.
Visit PENCOM’s official website for a current list of licensed PFAs. Avoid dealing with any organisation claiming to be a PFA that is not on this list. PENCOM publishes updates when licences are revoked or suspended, and dealing with an unlicensed operator will not produce a valid employer code.
Step 2: Register Your Employees With the PFA
Before an employer code can be generated, your employees need Retirement Savings Accounts. Each employee opens their own RSA with a PFA of their choice. Once the RSA is open, the employee receives a unique RSA PIN from PENCOM.
Your role as an employer is to facilitate this. Inform your staff about the requirement, make it clear they can choose any licensed PFA, and collect their RSA PINs once accounts are opened. You will need these PINs later, both when applying for your employer code and when uploading your employee schedule to the PENCOM portal.
Step 3: Apply for an Employer Code Through the PFA
<citation index=”3-1″>To request an employer code, a private company needs to submit a written application on the company’s letterheaded paper to PENCOM, a Certificate of Incorporation or registration from the relevant registering authority, and evidence of a Tax Identification Number.
This request goes through your chosen PFA rather than directly to PENCOM. The PFA submits the employer code generation request to PENCOM on your behalf. The PFA acts as the intermediary at this stage, so your relationship with them matters even before contributions begin.
Make sure the name on your application letter matches your Certificate of Incorporation exactly. A discrepancy, even a minor one, can delay the code generation process.
Step 4: Begin Remitting Pension Contributions
An employer code alone is not enough to qualify for a PENCOM Compliance Certificate. The law requires that the total pension contribution should be 18% of each employee’s salary: 10% paid by the employer and 8% deducted from the employee’s salary, based on Basic, Housing, and Transport allowances. Both parts must be sent to the PFA every month.
These remittances must be made within seven working days of paying salaries each month. Late remittances attract penalties, and a pattern of irregular payments will show up in your records when you eventually apply for the certificate.
If your company is older than three years, you must show proof that pension payments were made for at least three years. Newer companies need to show consistent remittances from the point they crossed the three-employee threshold.
Step 5: Confirm Your Employer Code Is Active on the PENCOM Portal
Once the PFA has submitted your request and PENCOM has generated your code, verify it before attempting any portal activity. Log on to the PENCOM E-PCC portal and enter your employer code. Your company name and RC number should populate automatically.
If the code does not pull up your company details, do not attempt to proceed. Contact your PFA to confirm the code was successfully generated and that PENCOM’s database has been updated. Trying to work around an unconfirmed employer code creates errors that are difficult to correct after submission.
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Step 6: Maintain the PFA Relationship After Registration
Linking your company to a PFA is not a one-off event. The relationship is ongoing. Every month, you remit contributions through the PFA. Every year, when you apply to renew your PENCOM Compliance Certificate, the PFA’s records form part of what PENCOM checks.
If your company changes its PFA, you need to inform PENCOM and update your records. Similarly, if an employee changes their PFA, their new RSA PIN must be updated in your employee schedule before your next certificate application. Stale or mismatched records are one of the most common reasons certificate applications get rejected.
The PFA Linking Process at a Glance
| Step | Action | Where It Happens |
|---|---|---|
| 1 | Choose a PENCOM-licensed PFA | PENCOM website for verified list |
| 2 | Register employees and collect RSA PINs | Each employee opens RSA with chosen PFA |
| 3 | Submit employer code application | Through the PFA to PENCOM |
| 4 | Begin monthly remittances at 18% of BHT salary | Through the PFA each month |
| 5 | Confirm employer code on PENCOM portal | PENCOM E-PCC portal |
| 6 | Maintain remittances and update records | Ongoing monthly responsibility |
Frequently Asked Questions
Can my company apply directly to PENCOM for an employer code without going through a PFA?
No. The employer code request is submitted by the PFA on your behalf. PENCOM’s process requires the request to come through a licensed PFA, which acts as the intermediary. You cannot bypass this step by approaching PENCOM directly.
What if my employees choose different PFAs?
Each employee is free to choose their own PFA, and it is common for employees in the same company to be registered with different PFAs. This does not affect your employer code. What matters is that all their RSA PINs are correctly recorded in your employee schedule. The contributions for each employee still flow through your company’s remittance process but are directed to the correct PFA for each person.
How long does it take to get an employer code?
Processing time depends on how quickly your PFA submits the request and how complete your documentation is. When everything is in order, the code is typically generated within a few working days to two weeks. Incomplete or mismatched documents extend this timeline significantly.
What is the 18% pension contribution based on?
The 18% is calculated on an employee’s Basic, Housing, and Transport allowances, commonly referred to as BHT. It is not calculated on the total gross salary if that salary includes other allowances such as meals, furniture, or utility allowances. This distinction matters when preparing remittance schedules, since an incorrect base figure will produce remittance records that do not match what PENCOM expects.
Does every employee need to be with the same PFA as the company’s chosen PFA?
No. Your company’s relationship with a PFA is for the purpose of generating and managing your employer code and processing remittances. Each employee independently chooses which PFA manages their RSA. These can be different institutions entirely.
What happens to our employer code if we change PFAs?
Changing your primary PFA does not invalidate your employer code, since the code is issued by PENCOM and sits in their database. However, you need to inform PENCOM of the change and ensure contributions are being directed correctly through the new PFA. Gaps in remittance records caused by a PFA switch, even if temporary, can affect your certificate application.
Conclusion: The PFA Is Your Starting Point, Not an Afterthought
Getting PENCOM-compliant starts with the PFA relationship. Without an employer code, there is no portal registration. Without remittance records, there is no certificate. Business owners who try to shortcut this process by gathering documents for the certificate before sorting out their PFA relationship almost always have to start over.
Choose a licensed PFA, get your employees registered, apply for your employer code through the PFA, and start remitting contributions on time from day one. Everything else in the PENCOM process builds on those four steps being done correctly.
Obtain Your PENCOM certificate
Let us help you obtain your PENCOM Compliance Certificate quickly and hassle-free. Our experts provide reliable support throughout the application process, ensuring you meet all requirements and remain compliant.
