The Minister for Gender Labour and Social Development, Betty Amongi, has said that National Social Security Fund (NSSF) savers eligible for mid-term benefits will lodge in their applications starting from Monday March 7, 2022.
The NSSF Amendment Act was published in the Gazette on January 7, 2022, at which point it became a law. The Minister later signed the instrument or regulations for NSSF midterm access.
“The applications will be online and if you have difficulties, NSSF has branches across the country, walk there and be supported to make your application,” she said .
Among the regulations, the minister said applicants must have National Identity Cards, asylum seekers card for refugees and NSSF membership card. She said People with disabilities will be required to present a medical report to NSSF while applying for midterm access of their savings.
“Since they expect high numbers of applicants in the first five months, NSSF is adequately prepared to spend Shs 50 Billion weekly on beneficiaries of the midterm access,” she said.
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.
On 2nd January, 2022 President Yoweri Kaguta Museveni assented to the NSSF (Amendment) Bill 2021 and the same accordingly became the NSSF (Amendment) Act, 2021. The Act allows members aged 45 and above who have saved for at least 10 years to access 20% of their savings.
According to the Act, a Member who is a person with disability, is forty years of age and above and has made contributions to the fund for at least 10 years is eligible to mid-term access, of a sum of 50% of his or her accrued benefits.
Every month, institutions deduct 5 per cent 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.
