ICT Sector players given 4 months amnesty to comply with NSSF

In Summary
  • Employers in ICT sector asked to comply with NSSF Act.
  • 83% of NSSF members have less than shs10m
Patrick Ayota, NSSF Managing director
Image: NSSF

Employers in the communication and technology sector have until 1st February 2024 to register their employees and remit their social security contributions.

This according to Patrick Ayota, NSSF Managing Director.

Patrick made the remarks during stakeholder sensitization workshop which attracted over 200 ICT sector players, including sector regulators and licensors, held on 21st September 2023 at Imperial Royale Hotel- Kampala.

He told the sector players that their compliance with NSSF would not only provide social protection for workers in those sectors but also accelerate Uganda’s economic growth.

“Our data shows that over 83% of NSSF members have less than shs10m where on average these savers earn shs250,000 a month. The low savings are attributed to non-compliant employers and low wages earned. On a national level, our savings are 11% of the GDP. We therefore call upon you employers to play your part to increase savings in the country. On our side, we have introduced several initiatives that will help increase both the capacity to save and the willingness for Ugandans to save,” he said.

“These initiatives include the support to local entrepreneurs to grow their businesses and create jobs as well as an intervention in the agricultural sector”, Ayota added.

Hon. Kabyanga Godfrey, the Minister of State for National Guidance, encouraged the sector players to fulfil their social security obligations within the amnesty period and negotiate a convenient payment plan with the Fund in case of challenges, to avoid hefty penalties.

“Being a key player in these sectors, my ministry, is looking at the six-month amnesty window to address these issues related to social security in a comprehensive manner, like ensuring employees do not lack appointment letters or NSSF remittance,” he said.

“We don’t want a situation in 2060 where retired Ugandans struggle because they didn’t save enough. So, we encourage everyone to pay taxes and contribute to social security.” he added.

The workshop follows a recent partnership established between the Fund, the Ministry of Information and Communication, Technology and National Guidance, the Ministry of Gender, Labor and Social Development and the Uganda Communications Commission, aimed at enhancing NSSF compliance within the sector.

Sections 7 and 13 A of the NSSF Act, as amended, introduced mandatory contributions by all workers regardless of the size of the enterprise or the number of employees, and section 13A which introduced voluntary contributions.

In the same meeting, Dr. Aminah Zawedde, the permanent secretary at the ministry of ICT noted that the under the ongoing digital transformation journey, the ministry is prioritizing fostering innovation and entrepreneurship.

"Given the abundance of young, highly productive individuals, many of them have created innovative products with the potential for commercial success. It's vital to consider how we utilize these savings when reinvesting them. Supporting the innovation ecosystem should be a top priority". Zawedde said.