NSSF issues ultimatum on mandatory registration of employees
Employers operating Small and Medium Enterprises and those in the informal sector have until 28, April 2023 to register their employees with the National Social Security Fund (NSSF) or be fined for non compliance.
NSSF Acting Managing Director Patrick Ayota says all employers including government agencies, registered companies, partnerships, trustees, and unincorporated associations are mandated to save for employees in the fund, regardless of the number of workers they have.
He states that is in accordance with sections 7 and 13 A of the NSSF amended act. The act provides for mandatory contribution to the fund.
Ayota says employers who fail to meet the ultimatum that takes effect on April 28 will automatically face penalties.
NSSF issues ultimatum on mandatory registration of employees
Ayota further stated that NSSF aims to grow the fund by registering up to 5 million savers by 2025 and 15 m by 2035. He says immediate prospective members can be realized from an estimated 50,000 employers under the categories provided for by the amended law. Various methods have been put in place to facilitate registrations.
Records from the NSSF show that newly registered entities contributed up to UGX 6 billion from June 2022 to the end of February 2023, with 56% of the amount coming from employers with fewer than five employees.
Moses Okwalinga, an Chief Executive Officer at the Uganda law society, says the financial penalties come along with failure to comply.
“In practice, the penalty for non-compliance with NSSF is very burdensome because it is compounded every month if an entity doesn’t pay. For the legal fraternity, NSSF compliance is already a requirement by the law council before a practicing certificate can be issued. For our members in the legal fraternity, the advantages of compliance are very evident,” he said.
NSSF issues ultimatum on mandatory registration of employees
