The Nauru government has hailed 1 July as a landmark day, when the nation's first compulsory superannuation scheme came into full effect.
National flag of Nauru. Photo: luzitanija/123RF
While government employees have enjoyed the plan for the past year, as of July all employers must contribute the equivalent of five percent of the wages they pay, while employees must contribute five percent of their slaraies.
Finance Minister David Adeang said the scheme was a step in Nauru's journey of shaking off the mistakes of the past and maturing.
"Nauru must establish a sustainable future for itself and its people, and this superannuation scheme, administered by a respected fund manager independent of government, will ensure that all Nauruans will have savings in the future."
The fund is being managed by the New Zealand-based superannuation company SuperLife.