Why can’t my employer pay me through a bank?

Moses Ssesanga, Head Human Resource Monitor Publications Limited

What you need to know:

  • The company knows that remitting your money through your bank account may create a paper trail which could lead Uganda Revenue Authority and NSSF authorities to the company’s door step.
  • "You are definitely being cheated by your employer, and she is also likely to be evading taxes, which is illegal,”

I work with a small company of about 20 staff. None of us has a contract or particular roles. Our salaries are paid in cash and we have no social benefits. I personally earn Shs500,000 per month. However, I recently requested my boss to pay me through the bank and she became agitated. She said that is not how the company works. What could the company be hiding? Sharon

You are definitely being cheated by your employer, and she is also likely to be evading taxes, which is illegal.
Given that you are 20 employees in your company, your employer is obliged by law to deduct 5 per cent of your monthly wages, top it up with 10 per cent and remit the 15 per cent to National Social Security Fund (NSSF) as your pension savings.
Secondly, it is also possible that your company is evading Pay As You Earn (PAYE) by paying your wages in cash.

The company knows that remitting your money through your bank account may create a paper trail which could lead Uganda Revenue Authority and NSSF authorities to the company’s door step.
That may explain your boss’ agitation and reluctance when you suggested your preference to be paid your wages through your bank account.

Your employer is also likely to be maintaining two or more sets of books of accounts, such as the concocted one she declares to URA and NSSF and the real ones she relies on to run the business.
You are hence advised to make use of the NSSF and URA whistleblowing hotlines to put an end to the theft of the pension savings you are entitled to by law as an employee supplying labour to your employer.

Moses Ssesanga
Head Human Resource
Monitor Publications Limited
[email protected]