How can I benefit from work health insurance ?

Friday December 7 2018

Moses Ssesanga

Moses Ssesanga  

By Moses Ssesanga

I am a contractor and do not have health insurance yet I wish to benefit from company insurance policies. How contract employees in a company benefit from the different insurance policies organisations offer? Kim

Dear Kim,
You have indicated that you are a contractor and not an employee and therefore you do not qualify to be offered the same treatment or enjoy the same benefits your company is making available to its employees. Independent contractors in organisations sign up contracts where their services are paid after invoicing the company. The employees on the other hand do not have to invoice for their services and, they are paid a salary/wage.

The contractors on the other hand have to pay withholding tax to URA, yet employees get deducted from source the Pay as you Earn (PAYE) tax. The contractors are required to regularly file their PAYE returns independently with URA yet this service is managed for employees by the employer. Contractors usually have clauses in their contracts to the effect that they have to pay the company for utilising the company’s offices to render their services.

Most companies take out insurance policies to provide medical care for their employees and their dependants and this is provided as a fringe benefit. The same is not extended to the independent contractors.
However, some companies on request by the contractor can pay medical insurance premiums to insurance companies and then charge the contractor for refund of the premium in reasonable installments.

Moses Ssesanga
Head Human Resource
NMG - Uganda