To limit the effect of COVID-19 on businesses in the private sector, the National Social Security Fund has extended a three-month amnesty to businesses.
Starting March 31, NSSF has allowed businesses/employers facing economic distress to reschedule their NSSF contributions for the next three months without accumulating a penalty.
According to Mr Richard Byarugaba, the NSSF managing director, the affected employers majorly fall in seven sectors: recreation, accommodation and food services; education; trade; transport, storage, real estate & construction; human health & social work; manufacturing & mining; and agriculture, forestry & fishing.
“The decision is informed by the fact that some employers are grappling with inadequate cash flows, stemming from limited consumer demand and disruptions in supply value chains. The Fund’s internal analysis indicates that the number of contributing employers in the mentioned sectors has declined by 33 per cent in the immediate aftermath of the COVID-19 pandemic. Overall, it is estimated that about 6,800 employers will be directly affected,” Byarugaba said.
“Employers in the above categories must agree with the Fund a payment schedule, after which they will sign a Deed of Settlement. This is because employers still have an obligation to pay Social Security contributions for their employees,” Mr Byarugaba added.
He, however, clarified that businesses that do not apply for this amnesty will be expected to continue honouring their statutory obligation to remit NSSF contributions by the 15th day of every month.