INDUSTRIAL TRAINING FUND ACT OF 2011 (AS AMENDED)

INDUSTRIAL TRAINING FUND ACT OF 2011 (AS AMENDED) 

Industrial Training Fund Act (2011) contains 17 sections and schedules. The Act was enacted in 2011 and focuses on the establishment of a Fund into which contributions is to be made so as to promote and encourage the acquisition of skills in industry or commerce with a view to generating a pool of indigenously trained manpower sufficient to meet the needs of the economy.1 Any enterprise that has a staff strength of 25 or more is obligated to contribute a One percent (1%) of its payroll cost to the Fund. The contribution is payable on or before 1st of April of the following year of payment. 

Section 9 of the ITF Act prescribes a penalty of five (5) per centum of the amount unpaid for each month default continues. 

As an example, the ITF payable with respect to 2020 calendar year is due for remittance on or before April 1, 2021. 

QUESTION AND ANSWER 

Q1: My Company was incorporated in February 2020 with a staff strength of 30, do I have a responsibility to contribute to the Fund? 

A1: Section 6 provides answer to this. Yes! You do have a responsibility to contribute to the Fund within the period specified by the Act. 

Q2: As a company that engages employee on part time basis, am I required to contribute for this category of staff? 

A2: As long as the number of part time employees crosses the 25 employees threshold, you are required to contribute a 1% of their total payroll cost as ITF. 

Q3: What am I getting in return for this contribution? 

A3: Any employer who contribute to this Fund is entitled to sixty (60) percent of its contribution in any calendar year provided that the Council is satisfied that the training is adequate and relevant to the employees performance. 

Disclaimer: 

The view and comment express here do not represent that of my firm (Ijewere & Co); hence should not be taken as finality. However, it may serve as a guide on the above subject. 

Should you require advice on this, Kindly contact @ijewere & Co. 

Copyright: Kayode Kehinde Balogun