Labour rights activists welcome NSSF amendments

Future. The Workers House in Kampala that houses NSSF. The NSSF Amendment Bill 2019 seeks to have both workers in the formal and informal sector to make voluntary contributions to the Fund. File Photo

What you need to know:

  • Early this year, cabinet approved policy amendment to the NSSF Act and among the approved proposals was for workers to access NSSF savings at 45 years of age because at that age, savers have the capacity and energy to commit savings to lucrative venture which they may then monitor and grow successfully before the evening years set in.

The proposed amendment of the National Social Security Fund (NSSF) Bill is timely to ensure that it is aligned to the current labour situation in Uganda where the informal sector is controlling majority of the labour force, the civil society have said.

In an analysis of the bill, labour rights activists say the proposed amendment expands the scope of coverage to the excluded workers by the current law.

“The proposed amendment to this section requiring every employer irrespective of the number of employees to register with the fund as contributing employer and make contribution for his/her employees.
Therefore, the proposed amendment expands the scope of coverage to the excluded workers by the current law,” reads the analysis by Platform for Labour Action (PLA).

According to the PLA 2018 survey on Cost Benefits from Compliance with Labour and Employment Standards at the Workplace, majority 48.5 per cent of the employers in the survey were employing less than five staff and because of the current provisions, workers in these enterprises were not remitting NSSF.
Currently, under section 7 of the NSSF Act only employers with five employees and more are legible to register and make monthly contributions to the Fund.

“Likewise, the Bill allows a self-employed person to register and make voluntary contributions to the fund. With this amendment, such employers and workers will be covered.
“This will ensure that almost every worker is provided with social protections as well as achieve Uganda’s vision 2040 that underscores the importance,” reads the CSO argument.

The self employed
According to the paper, the Bill allows a self-employed person to register and make voluntary contributions to the fund thereby enabling employers and workers to be covered.
“This (amendment) will ensure almost every worker is provided with social protection as well as achieve Uganda’s vision 2040 that underscores the importance,” they say.

To further strengthen the scope, the activists suggest that an individual or natural person be included in the definition of an employer to cover people employing others in their individual capacity.
On introduction of mid-term access to benefits for members making voluntary contributions to the Fund, the activists argue that the concept can benefit all the workers if it is applied indiscriminately with reasonable restrictions.

Access to one’s savings
Early this year, cabinet approved policy amendment to the NSSF Act and among the approved proposals was for workers to access NSSF savings at 45 years of age because at that age, savers have the capacity and energy to commit savings to lucrative venture which they may then monitor and grow successfully before the evening years set in.

“Whereas it would not be practical at 45 years for one wipe out all his savings as this would threaten the fund’s growth strategy given the fact that five Ugandans aged 45-55 account for 4.7 per cent of the population, midterm access should be opened to all members to the Fund above 45 years of age to access only their 5 percent contribution and retain the balance (10 percent) which should be accessible at 55 years,” they argue.
Last month, Cabinet proposed amendments in the NSSF Act of 1985.