Section 11 (5) (b) of the Pension Reform Act (PRA 2004) provides that the employer shall not later than 7 days from the day the employee is paid his/her salary, remit an amount comprising the employee’s and employer’s pension contributions to the custodian specified by the Pension Fund Administrator (PFA) of the employee. Furthermore, Section 11 (7) of the PRA 2004 provides that any employer who fails to remit the contributions within the time prescribed shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the Commission provided that the penalty shall not be less than 2 percent of the total contributions that remains unpaid for each month the default continues.