President Yoweri Museveni has assented into law a provision in the National Social Security Fund (NSSF) Amendment Bill 2021, allowing members aged 45 and above who have saved for at least 10 years to access 20% of their savings.
According to the law, the commencement date will be set in the statutory instrument; supervision of the fund is by the Ministry of Finance, while the NSSF Managing Director (MD) is a member of the Board of directors.
In 2019, the government tabled the NSSF Amendment Bill seeking to expand social security coverage, enhance the spectrum of benefits available to workers and improve governance of the Fund. The Bill was passed by parliament in February 2021.
In August, President Yoweri Museveni agreed to the workers’ mid-term access to their savings in the National Social Security fund and directed the Minister for Gender, Labour and Social Development Betty Amongi to make changes to the bill and return it for consent.
Every month, institutions deduct 5 percent of employees’ salaries as contribution to NSSF, the employers tops it up with 10 per cent while NSSF earns them 12 per cent. The fund collects Shs 125 billion a month, Shs 1.5 trillion per year and pays up to Shs 900 billion for members qualifying in other benefits.
The law provides for mandatory contributions of all workers regardless of the size of the enterprise or number of employees; and to provide for voluntary contributions to the Fund; proposes a tax on members’ retirement benefits.
