Members of the Forum for Social Protection in Parliament have voiced their disappointment regarding employers who neglect their responsibility to remit contributions for their employees to the National Social Security Fund (NSSF). This government-mandated program serves as a retirement savings initiative for all private sector employees.
Silas Aagon, a Forum member representing Kumi Municipality, conveyed on Monday that their research indicates a significant number of retiring employees are left without the necessary benefits to support them in their post-work life. Aagon emphasized that failing to remit employee savings is a violation of labor laws.
The importance of social protection was highlighted by Aagon, who explained its role as a safety net for individuals facing unexpected challenges that could hinder their ability to continue working. He urged local governments to prioritize budgeting for social protection comprehensively.
Mandated NSSF Contributions
Sections 7 and 13 A of the NSSF Act, as amended, have established compulsory contributions for all workers, irrespective of the enterprise’s size or the number of employees. Additionally, section 13A allows for voluntary contributions.
Under the NSSF Act, both employers and employees bear the obligation of contributing to the retirement benefit scheme. Employees are mandated to contribute 5% of their monthly gross salary to the NSSF, while employers are required to contribute 10% of their employee’s monthly gross salary, resulting in a total contribution of 15%.
NSSF Contribution Breakdown
| Contributor | Contribution Percentage |
|---|---|
| Employees | 5% of monthly gross salary |
| Employers | 10% of employee’s monthly gross salary |
| Total Contribution | 15% |
