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NEW ACT: NSSF gives all employers 30-day deadline to register


Ayota says, the NSSF Act, as amended, requires any company regietered under the Companies Act, 2012 – that is every employer both in the SME space and informal sector  – to register.

Kampala, Uganda | THE INDEPENDENT | Today marks the beginning of the 30-day ultimatum provided for by the amended National Social Security Fund (NSSF) Act requiring all employers in the Small and Medium Enterprises and informal sectors to register with the fund or risk penalties for non-compliance.

According to sections 7 and 13 A of the amended act, employers of any size, including government entities, registered companies, partnerships, trustees, and unincorporated associations, must make mandatory contributions to the fund. The deadline for registration is between 28th March and 28th April 2023.

Patrick Ayota, the acting managing Director of NSSF, revealed that since the law came into force a year ago, up to 3,200 employers with fewer than five employees have registered and started contributing to the fund. Employers who fail to meet the ultimatum will face penalties.

Ayota further stated that NSSF aims to register up to 1.2 million new members from an estimated 50,000 employers under the categories provided for by the amended law. Various methods have been put in place to facilitate registrations.

Records from the NSSF show that newly registered entities contributed up to UGX 6 billion from June 2022 to the end of February 2023, with 56% of the amount coming from employers with fewer than five employees.

John Walugembe, the executive director of the Federation of Small and Medium Size Enterprises, stated that although the amended law provides SMEs with the opportunity to contribute to the welfare of their employees, many do not understand the need for such contributions.

The legal profession is identified as one of the sectors that will greatly contribute to the fund under this category. Moses Okwalinga, the Chief Executive Officer of the Uganda law society, says lawyers should be exemplary in upholding the laws of the land as well as avoid the financial penalties that come along with failure to comply.

“In practice, the penalty for non-compliance with NSSF is very burdensome because it is compounded every month if an entity doesn’t pay. For the legal fraternity, NSSF compliance is already a requirement by the law council before a practicing certificate can be issued. For our members in the legal fraternity, the advantages of compliance are very evident,” he said.



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