NSSF levy may rise to 20%

Aug 22, 2003

THE Stakeholder Transition Group, charged with working out proposals for reforming the country’s social security sector, has recommended a complete overhaul of the sector including dismantling of the monopoly enjoyed by National Social Security Fund (NSSF).

By John Kakande

THE Stakeholder Transition Group, charged with working out proposals for reforming the country’s social security sector, has recommended a complete overhaul of the sector including dismantling of the monopoly enjoyed by National Social Security Fund (NSSF).

The STG has recommended that the mandatory social security contribution be increased from 15% to 20% of employee’s gross earning and be compulsory for every working person in both public and private sector. It wants the contribution split between 10% employee and 10% employer.

The Group headed by Senior Presidential Advisor on AGOA and Trade, Onegi Obel, said all working persons in both private and public sector, whether employee or self-employed should pay a mandatory social security contribution.

It was recommended that there should not be a minimum contribution for people in the informal sector.

The contribution should be agreed on between the members and the social security provider.

The 22-member STG set up by the gender, labour and social development minister, Zoe Bakoko Bakoru, in November last year, wants NSSF to compete with a restricted number of private national social security providers.

They also proposed that the minister’s control over NSSF be trimmed. STG has proposed that mandatory contributions should cease after a person attains the age of 60 years, but an employee should qualify for early benefits at the age of 50 years if he or she is out of employment.

The STG includes representatives from the National Organisation of Trade Unions, Federation of Uganda Employers, Privatisation Unit, Bank of Uganda and Parliament in addition to over a dozen government bureaucrats.

(adsbygoogle = window.adsbygoogle || []).push({});