About National Social Security Fund (NSSF) Uganda
The National Social Security Fund (NSSF) is a quasi-government agency responsible for the collection, safekeeping, responsible investment, and distribution of retirement funds from employees of the private sector in Uganda who are not covered by the Government Retirement Scheme. Participation for both employers and employees is compulsory.
The NSSF covers all employers who have 5 or more employees between 16 and 55 years of age, with the exception of employees under the Government Pensions scheme. The NSSF Act requires a registered employer is required to pay contributions to the Fund for his/her employees every month during which he/she pays salaries.
The NSSF Act also provides for voluntary membership for employers with less than 5 employees.
Rate of Contribution
The employer must deduct 5% from the employee's total gross monthly wage and add 10% of the total gross monthly wage making a total contribution of 15% for each employee. The Payment of contributions must be paid by the 15th day of the following month. The Fund currently collects over UGX 70 billion per month for its members.
Interest Rate
The Fund declared and paid an interest rate of 11.23% to its members for the last Financial Year (2016/2017).
Interest rates are reviewed annually and declared by the Minister of Finance, Planning and Economic Development on the advice of the Board of Directors. Interest rate paid to members is based on the financial performance of the Fund.
Guide for Employer & Employee registration
The employer ensures that all the employees between the age of 16 and 55 years registered with NSSF
Remit contributions at the end of every month for which wages / salaries are paid.
How does a qualifying employer register?
A qualifying employer registers by completing Employer Data Collection Form.
This form is submitted to a nearest NSSF Office for electronic registration.
Employer registration number is generated from the system and then a certificate of registration is issued to the employer.
Employee Registration
He or she fills out a member employee data collection form at the nearest NSSF Office
The form is submitted to the registration officer for capture into the system.
A registration number is generated from the system instantly.
NSSF INVESTMENT:
NSSF collects members' contributions and invests them judiciously, and pays commensurate benefits to qualifying members. The money collected is maintained on individual member accounts, invested and earns an annual interest depending on our return on investments.
NSSF's Investment Policy provides for clear guidelines on investments. The Board and Management are mandated by the NSSF Act to invest the money on behalf of the NSSF members. Currently, NSSF has various investment interests in real estate, equities, and fixed income. The benefit for the member is that the member is assured of secure retirement.
NSSF BENEFITS
NSSF administers and pays qualified contributing persons the following benefits;
- Age
- Invalidity
- Survivors
- Withdrawal
- Exempted Employment
- Emigration Grant
[Compliances and Memberships/Affiliations]