KIRIBATI PROVIDENT FUND

EMPLOYER’S GUIDE

PART I – LIABILITY FOR PAYMENT OF CONTRIBUTIONS

(This is a brief guide, it is a not intended to be a substitute for KPF Act Cap 78A, or the Regulations
made thereunder)

EMPLOYERS.

All employers are required to register themselves with the fund by completing Register Form
[KPF2] if at any time an employer ceases business, he must inform the Fund immediately.
EMPLOYEES.
Employers must pay contributions to the fund in respect of all employees except the
followings:
 Employees under the age of 14
 Employees earning less than $10.00 per month basic wage
 Domestic servant in private houses.
Once an employee has become a member of the fund he/she will be provided with a
membership card containing a number which his/her membership number throughout their
working life. If he/she changes employment he/she does not get a new number but continues
to have contributions paid by his/her new employer.

PAYMENT OF CONTRIBUTIONS.
An employer is liable to pay contributions for their employees in each month calculated on
the Basic wages paid in the previous month. The amount payable is 15 cent in every whole
dollar of Basic wages [excluding overtimes, allowances, bonus etc…..] calculated for each
occasion on which are paid. An employer may at any time agree to pay monthly contribution
in excess of 15 cents per dollar provided that the amount so paid does not exceed 25% of the
relevant wages. He/ She is not allowed to recover any part of each a voluntary excess
payment by deduction from wages.

RECOVERY OF EMPLOYEE’S SHARE

An employer is allowed to recover one half of the contributions payable to the fund [except
voluntary excess payments] by deduction from employee’s wages. This will therefore
amount to 7.5% in every dollar of basic wages. If deductions are made, they must be made on
each occasion of payment from wages then paid. If the deductions are not made at the
proper time, the right to make them lapses.
 LATE PAYMENT.
Employers are required to make payments of contributions every month based on the
previous month’s wages. The payment may be made at any time in the month but employees
are urged in their own interests to make the payment early and not to wait until the last day
of the month, a surcharge of 5% will be payable by the employer.

PART II – FORMS
The following forms are used in transactions with the fund:-
 KPF 1- For the registration of employees in employment at 1st Jan 1978.
 KPF 2- Employers registration form
 KPF 3- Employee’s registration form
 KPF 4- Membership Card
 KPF 5- Member’s Nomination form
 KPF 6- Member’s application for withdrawal.

PART III- WHAT AN EMPLOYER REQUIRED TO DO

Initial Procedure
a.) When KPF 2 form returned, employers will receive appropriate number of employees
registration forms KPF3 which should be completed and returned within 14 days.
b.) Copy full names of employees shown on cards onto Form ‘A’ in their Alphabetical order.
c.) Also enter membership number on Form ‘A’ against each name when the membership
card is received.
Monthly Procedures

 Calculate 15% Basic Wages, wages should be rounded up to the next whole Dollar [ Basic
Wage $81.37 ; 15%- $12.21 ]
 Enter the above amount (12.21) against the employees name onto the schedule/Return’ in
appropriate month column.
 Submit Return & Remit Contribution with full details e.g. Mth/Yr/Employees Names/Totals
5.) WHEN AN EMPLOYEE LEAVES EMPLOYMENT.
 A contribution will normally be payable for the month following that in which he/she leaves
provided he has received a payment during the month in which he/she leaves.

 Enter the contribution in the appropriate column and draw a horizontal line through any
unused months on the form ‘A’ against the employee’s name. Add the contributions for
the employee and enter the total in the final column.
  No need to inform the Fund when the employee leaves unless if he /she dies whilst in
employment in the case an employer should inform immediately.
{Hints; MONTHLY COLUMNS RELATE TO CONTRIBUTIONS DUE TO BE PAID BY THE END OF THAT MONTH AND
ARE BASED ON WAGES PAID IN THE PROCEEDING MONTH.)

MISCELLANEOUS
 Employer’s Provident Fund Records.
Employers are advised to keep KPF records carefully and to produce for inspection when
called upon by authorized Inspectors. Copies of Form A&B must be kept for two years
together with Wages record. A specified date of start and termination of contract of his
employee must be kept in the record.
 Employers REF number.
A reference number issued and allocated should be used on all forms and correspondence.
 Employer ceasing to be Liable to Contribute.
In the case of a Business is closed or amalgamate with another he must notify the Fund
immediately
 Death of an employee
The employer should inform the Fund immediately if and employee should die.
 Member’s Statement of Account
At the end of each year the Fund will provide Statements for employees for each employer
to collect, according to employee listed on the form A as being in his/her employment at the
end of the year. The employer shall within 14 days deliver the statements to the employees.
Also the employer must return statements of those members who are no longer in his
employment.

Agreement and Understanding your duties:

To the best of knowledge, understanding and after reading this Employer guide. I agreed and
willing to do my duties as an employer and Officer in charge of this organization
………………………………….. ...……………… also to pass down my understanding to the
one appointed after me so that no misunderstanding will occur to this agreement for our
Employees.

Employer representative: …………………………… KPF Officer: ……………………………..

Signature: ……………………………….. Signature: ………………………………..