pension holders requested voluntarily for the insurance Companies to make payment to
them.This terminate the pension contract with the insurance Companies, while this funds
were later transferred to NASSIT as a starting phase, this also depend on size, legal and
regulatory structure, and the perception of political and macroeconomic stability.Social security protects not only the subscriber but also the entire family and society on
contingencies like Old Age, invalidity, and death. It serves as a social Insurance system,
which covers all employees in the public and private sectors. The self-employed can be
covered on a voluntary basis.The contributory mechanism is that insured person/employees pays 5%, employer pays
10% of payroll for employees; this gives a total for employee benefit 15%, while the
self-employed contribute 15%.❖ FINANCIAL PLANNING AND BUDGETING
All business needs money. Either for capital expenditure (Expenses on fixed assets) or
for Working capital (expenditure on daily operation) .Both capitals were to be found
before, the business starts to generate any income. Appropriate financing means
matching the right type of finance to its use.
One systematic approach for attaining effective management performance is financial
planning and budgeting. Financial planning indicates a firm’s growth, performance
investments and requirements of funds during a given period, usually three to five
years.A company’s annual financial plan is called a budget. The budget is a set of formal
(written) statements of management’s expectations regarding sales, expenses,
production volume, and various financial transactions of the firm for the coming period.
A budget is a tool for both planning (beginning) and control (at the end).