The National Social Security Fund (NSSF) has given an ultimatum of 30 days to employers to register workers with them or face penalties.
According to Patrick Ayota, the acting managing Director of NSSF, the law requires that all employers in the Small and Medium Enterprises and informal sectors register workers with the fund.
The deadline for registration is between 28th March and 28th April 2023.
Sections 7 and 13 A of the (NSSF) amended act, provides for employers of any size, including government entities, registered companies, partnerships, trustees, and unincorporated associations, must make mandatory contributions to the fund.
Ayota states that those that will not comply with the fund’s demands risk penalties for non-compliance.
He explains that since the law was enforced over one year ago, up to 3,200 employers with fewer than five employees have registered and started contributing to the fund.
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.