What is the difference between PPF and other social security funds in Tanzania?
The difference between PPF and other social security funds is: • Contributions rates are flexible • Shorter qualifying period for old age benefits i.e. 120 months as compared to 180 for other funds. • Unique benefits i.e. Education benefit. • How are member’s contributions deducted and remitted to the Fund? Each member is required to contribute 20% of the salary of which the employer contributes 10% or 15% while the employee contributes 10% or 5%. Contributions are remitted monthly to PPF. The law has given the employer a grace period of 30 days after end of each month. • What happens if members’ contributions are not remitted after the grace period of 30 days? According to the law, non remittance of members’ contributions by an employer is a criminal offence. A penalty of 5% is charged every month on delayed contributions. • Does the penalty affect the employee? The penalty does not involve the employee. This is the employer’s responsibility only. However, if the penalty is out standi
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