NSSF is extending a 6 months amnesty to all defaulting employers to pay outstanding NSSF contributions for their employees, Managing Director Richard Byarugaba has announced.
The amnesty starts on November 15, 2010 and ends on May 15, 2011.
Addressing a press conference at NSSF head office at Workers House in Kampala, Byarugaba said that the Fund has waived amounts of money accrued in penalties.
“The amnesty offers the best chance for employers to clear arrears without being burdened by payment of accrued penalty. The Fund encourages all employers countrywide to take advantage of this amnesty and clear all arrears within six months,” he said.
Byarugaba also said that a number of employers are in the habit of not remitting the correct amounts of contributions for their employees.
Over 9,000 employers are registered with NSSF but only 4,700 contribute for their employees.
“Employers who do not contribute to NSSF deny their staff their fundamental right to social protection. We are extending an olive branch to engage cooperative employers without recourse to courts of law for the next six months,” he added.
The NSSF Act empowers the Fund to charge a penalty of 10% of delayed or unremitted monthly contributions, according to Section 14 (1) (a) in addition to the annual interest.
Section 14 (2) of the NSSF Act also gives the Fund’s Managing Director discretion to waive “whole or part under this section subject to such conditions as he or she may determine,”
“The Fund is mindful of the fact that some employers may not have enough cash reserves and we are therefore ready to meet and agree a payment schedule that is mutually agreeable. Employers must meet their social security obligations for their employees” Byarugaba added.
Employers that pay contribution for their employees will not only be complying with the law and therefore avoid unnecessary litigation, but they will also be able to attract and retain the best employees in their organisations.
Are you an employer? Take advantage of the amnesty today!
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