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Mandatory NSSF registration
Following multiple requests from companies, the National Social Security Fund (NSSF) has announced an extension of the mandatory registration for employers to June 30, 2023.
On March 28, NSSF had announced a 30-day ultimatum for unregistered employers to register with the Fund and comply with the new social security rules.
The NSSF Act (Amendment) 2022, requires mandatory registration of all employers to register regardless of size and number of employees.
Mandatory registration
The Fund covers all employers, irrespective of the number of employees between 16 and 55 years of age, with the exception of employees under the Government Pensions scheme. It is the obligation of the employer to remit contributions to the Fund for his/her employees every month.
The employer must deduct 5% from the employee's total gross monthly wage and add 10% of the total gross monthly wage making a total contribution of 15% for each employee. The payment of contributions must be paid by the 15th day of the following month.
Voluntary registration
Employers and workers that are not compelled by the mandatory provisions of the NSSF Act have the opportunity to voluntarily save for their retirement.
Under voluntary membership, the Fund recruits and registers persons who are self-employed, as well as contributing members who wish to make voluntary contributions to the Fund over and above their standard contributions.
The NSSF Act CAP 222, Laws of Uganda, as amended, requires all employers, irrespective of the number of employees as well as sector, whether private or public, to register with NSSF as contributing employers and make monthly contributions in respect of all employees, permanent or temporary.
Registration benefits
NSSF registration offers several benefits to both employers and employees, including:
Retirement benefits: NSSF provides retirement benefits to employees who have contributed to the Fund.
Invalidity benefits: In the event that an employee becomes permanently incapacitated, NSSF provides invalidity benefits to the employee.
Survivors’ benefits: In the event of an employee’s death, NSSF provides survivors’ benefits to the employee’s nominated beneficiaries.
Short-term benefits: NSSF provides short-term benefits to employees who are unable to work due to illness, injury, or maternity leave.
Action points...
Employers who fail to register with NSSF or make the mandatory contributions risk facing legal action, including fines and penalties. Non-compliant employers may also be barred from accessing government contracts or licenses.
The registration process involves filling out an employer registration form, providing the relevant documentation, and paying the mandatory contributions.
ABC EXPAT can assist you and your organisation in this regard to ensure you are fully compliant.