Social Security

Pension Rights

What is the relevant legislation on pension rights?

The Decent Work Act and Social Security Law have the relevant provisions on pension rights.

At what age are men and women entitled to early as well as full pension?

An employee is entitled to a retirement pension:

• Full pension is available at 60 years of age (both men and women) with at least 15 years of continuous service with the employer.
• Early pension can be claimed at any age with at least 25 years of continuous service with the employer.
• If a person has not formally retired, retirement is deemed automatic at age 65.

Who manages old age pension benefits?

The National Social Security and Welfare Corporation (NASSCORP) is the government agency responsible for managing old age pensions for private sector employees in Liberia.

Old-age pension benefits are funded through the social insurance scheme, with contributions from workers (4% of monthly wages) and employers (4% of payroll).

What are the qualification requirements (years of contributions)?

• An employee must have at least 144 months of contribution to Social Insurance to qualify for retirement/early pension.
• For full pension benefits, 15 years of continuous service with the employer is required.

Additional pension increases are granted to:

• Those born in 1980 or after with more than 144 months of contributions, and
• Those born before 1980 with more than 100 months of contributions

What percentage of monthly salary is paid as pension (or is it a flat rate benefit, lump-sum payment, or calculated through a complex formula)?

The minimum retirement pension is equal to 25% of their average monthly salary.

If contribution periods are met, the pension increases by 1% for every additional 10 months of contributions, up to a maximum of 40% of the reference wage.

At the age of 60, with at least 12 months of contribution, a person is eligible for an old age settlement, which is a lump sum of total employee contributions plus accrued interest.

Does the law provide for pension rights for workers for at least 40% of the reference wage?

Monthly pension benefits include at least 40% of the average monthly earnings during the last 5 years of employment and will be paid till the death of the employee.

If a person born in 1980 or after has contributed for more than 144 months, their pension will increase by 1% for each extra 10 months, reaching a maximum of 40% of their wage, with a cap. The same 1% raise is given to employees born before 1980 who have contributed for more than 100 months; this increase is capped at 40% of their income and occurs every 10 months.

Sources: §89 of the NASSCORP Social Security Law, 2017; §22.2 of the Decent Work Act, 2015; ISSA Country Profile for Liberia

Dependents' / Survivors' Benefit

What is the relevant legislation on dependents'/survivors' benefits?

Survivor benefits are managed by the Pension Division, including lump sum payments for widows, widowers, and children under the 2017 Social Security Law.

What percentage of the old-age pension (that a worker was getting or would have got if they had reached the retirement age) is the survivors' benefit for a widow(er) with two children?

When a deceased employee leaves dependents wholly reliant on their earnings, they receive compensation equal to 48 months’ earnings. If only partially dependent individuals exist, the Ministry determines fair compensation, ranging from 20% to 80% of the full amount.

A widow or widower qualifies for a survivor’s lump sum if the deceased made at least 50 monthly contributions or was receiving a pension at the time of death. The benefit is 50% of the pension’s annuity value, reduced by 12%. If multiple spouses exist, the amount is divided equally.

A child qualifies for a lump sum if a parent dies, the child was dependent on them, and the parent made at least 50 contributions. The child must be under 21.

If no spouse or child exists, the benefit is granted to a surviving parent at the same rate as a spouse.

How are survivors’ benefits funded?

Survivors' benefits for private sector workers in Liberia are managed by the National Social Security and Welfare Corporation (NASSCORP). NASSCORP administers the National Pension Scheme (NPS), which provides survivor benefits to eligible dependents—such as widows, dependent widowers, and orphans—of insured employees in both the public and private sectors. Survivors’ benefits are managed by the Pension Division, including lump sum payments for widows, widowers, and children.

What are the qualification requirements (years of contributions)?

The deceased must have made at least 50 monthly contributions (approximately 4 years and 2 months). Alternatively, the deceased must have been already receiving a pension at the time of death.

Is it a percentage of old age pension or is it a flat rate benefit or lump-sum payment or is it calculated through a complex formula?

The survivor’s lump sum formula is defined by regulations. Widows or widowers receive 50% of the deceased worker’s pension in a lump sum, while each child receives 10%, with a total cap of 50% if more than five children qualify. If no spousal benefit applies, children collectively receive up to 100% of the deceased worker’s pension in a lump sum.

The lump sum is based on the deceased’s highest applicable pension, whether retirement or invalidity.

Does the law provide for survivors'/dependents' benefits of at least 40% of the reference wage?

Widows or widowers receive 50% of the deceased’s pension in a lump sum, it may exceed 40% of the reference wage or pension.

Sources: §89.24 and 89.25 of the NASSCORP social security law, 2017; ISSA Country Profile for Liberia

Invalidity Benefit

What is the relevant legislation on invalidity benefits?

Social Security Law is the relevant legislation on invalidity benefits.

What are the qualification requirements (years of contributions)?

To qualify, a person must be under 65 years old, certified by the Medical Board as permanently incapable of work, and have paid at least 50 monthly contributions within the last 60 months or at least two-thirds of their insurable employment period, with a minimum of 50 contributions.

How are invalidity benefits funded?

(Employer, worker, government; social insurance, state financed, etc.)

Invalidity benefits are funded through the social insurance system with contributions from workers and employers.

Is it a percentage of old age pension or is it a flat rate benefit or lump-sum payment or is it calculated through a complex formula?

The minimum invalidity pension is 25% of the beneficiary worker’s average monthly earnings for those who meet the 50-contribution requirement. For those exceeding 50 contributions, the rate increases by 1% for every additional 10 contributions. If a person does not meet the qualifying conditions, they receive a lump sum invalidity grant equal to their contributions plus interest, provided they have paid at least 12 contributions. If the insured person dies, their highest applicable pension retirement or invalidity is converted into a lump sum.

Does the law provide for invalidity benefits of at least 40% of the reference wage?

For those exceeding 50 contributions, the rate increases by 1% for every additional 10 contributions, meaning the benefit can reach or exceed 40% of the reference wage.

Sources: §89 of the NASSCORP Social Security Law, 2017; ISSA Country Profile for Liberia