As Papua New Guinea celebrates Mother’s Day, the country’s leading superannuation provider National Superannuation Fund Ltd or Nasfund announced a new initiative to benefit its female employees.
The Fund introduced the payment of superannuation on unpaid maternity for its female staff – a first for the industry, and for the country.
The Chief Executive Officer (CEO), Rajeev Sharma, said as a responsible employer, Nasfund is committed to promoting gender equality and bridging the gap that exists with the disparities faced by women at the point of retirement.
“On average, for example, a female contributor may miss out on superannuation contributions of up to K500 due to unpaid maternity leave. This then affects her final superannuation balance in the long run by as much as K2, 895.00 at the age of 60 (assuming a 5% annual return). This happens due to the impact of cumulative interest. This is why continuing savings during early years of life is important.
This new initiative ensures that all female employees of Nasfund who take unpaid maternity leave will continue to receive their employer contributions during their absence from work, providing them with financial security during a crucial period in their lives and ensuring that they don’t miss out on the benefits of superannuation.
“We are proud to introduce this initiative on Mother’s Day, which is a symbolic celebration of motherhood. In line with our corporate values, we operate as a responsible employer and recognize the challenges that working mothers face and the impact it can have on their financial independence and security at retirement.”
“Staying true to our values, we hope to inspire others through what we do today for a better tomorrow.”
Furthermore, the new initiative is part of Nasfund’s ongoing efforts to provide a healthy working environment for the staff who work as a team in delivering innovative and impactful services to its members. It demonstrates the organization’s commitment to their members and dedication in promoting gender equality and social responsibility.
By Law, employer contributions are capped at 15%. Nasfund currently contributes an additional 1.6% to the mandatory 8.4% employer contributions component for all Nasfund staff as well as allowing for paid paternity leave for male employees.