The Minister of Labour, Gender and Social Development Betty Amongi has revealed that the National Social Security Fund (NSSF) (Amendment) Act will come into force upon publication in the Uganda Gazette.
On 2nd January, 2022 President Yoweri Kaguta Museveni assented to the NSSF (Amendment) Bill 2021 and the same accordingly became the NSSF (Amendment) Act, 2021. The Act allows members aged 45 and above who have saved for at least 10 years to access 20% of their savings.
The minister said the provision regarding midterm access to benefits by qualifying members of the Fund shall come into effect after she has issued a statutory instrument that will guide on the terms and conditions and procedures for accessing benefits.
“I have also received assurances that the Fund is ready to implement the NSSF Amendment Act once the requisite procedures have been undertaken. My Ministry, as the supervising body of the Fund, will ensure that the Act is implemented to the letter,” she said.
She said every worker, Employer as defined in the Act, is now obliged to contribute to the NSSF for their workers, irrespective of the number employed and every worker can voluntarily save with the Fund, over and above the mandatory 15% contributions.
According to the Act, a Member who is a person with disability, is forty years of age and above and has made contributions to the fund for at least 10 years is eligible to mid-term access, of a sum of 50% of his or her accrued benefits.
Every month, institutions deduct 5 percent of employees’ salaries as contribution to NSSF, the employers tops it up with 10 per cent while NSSF earns them 12 per cent. The fund collects Shs 125 billion a month, Shs 1.5 trillion per year and pays up to Shs 900 billion for members qualifying in other benefits.
The law provides for mandatory contributions of all workers regardless of the size of the enterprise or number of employees; and to provide for voluntary contributions to the Fund; proposes a tax on members’ retirement benefits.