While unveiling the revamped web-based whistleblower platform on Wednesday, National Social Security Fund (NSSF) Managing Director Patrick Ayota revealed that the NSSF has a total of 36,426 registered employers, out of which only 20,764 are currently compliant to remitting their employees NSSF contributions.
This leaves over 15000 defaulting employers whose thousands of employees do not have social security.
The revamped platform is hence aimed at enabling disgruntled employees to report employers who are non-compliant with the remittance of social security contributions to the Fund.
It has new features which among others; enable complete anonymity of the whistleblower (whistleblowers’ identity is not revealed to either the Fund or employer), automatic tracking of reported cases (reported cases can be followed electronically without having to visit an NSSF branch) and empowerment of Government Labour Inspectors (allows government labour inspectors to report Government contractors and other employers who refuse to contribute to the Fund.)
“This platform is designed to facilitate collaborative efforts between the Fund and its members to hold employers accountable for NSSF contributions and any accumulated interest. According to our data, only 20,762 out of 36,426 registered employers are actively remitting contributions to the Fund. This gives us a compliance rate of only 57% compliance rate. Compliance means that an employer is remitting the contribution on time and in full. This means that over 15,000 employers are not complying and are cheating their employees of their retirement savings,” Ayota said.
He added, “The sad news is that, on average, only 107 cases are being reported. In a bid to empower members, I would like to inform our members that we have revamped our web-based – Whistle-blower platform used by aggrieved employees to report employers who fail to remit their social security contributions to the Fund, as required by the law.”
With these staggering numbers of defaulting employers, one is inclined to ask if the employees are aware of their rights as regards social security, how the remittances are made and when or their course of action if they are being cheated by their companies.
Instances of non-compliance with NSSF regulations take various forms, such as employers failing to remit monthly social security contributions despite deducting from employees’ salaries, neglecting to contribute the mandatory 10% on top of their employees’ 5% contributions, and under-declaring their staff’s gross salaries to reduce monthly contributions.
What employees say
PrimeNews reached out to 5 employees working with private companies in various industries including media and communications, transportation, health, tourism and education.
Out of the 5 respondents, only two were aware and sure about their NSSF remittances being made by their employers, 1 was never told about “that whole arrangement” and 2 know about NSSF, have asked their employers about the monthly remittances but “the boss didn’t give us a straight answer. He got mad and emphasized that I should focus on the job I am lucky to have.”
“Topics such as NSSF are not a thing you discuss with my boss when he can hardly pay our salaries on time. It’s complicated enough that we have to sit and pray that we get paid, so that stuff (NSSF remittances) doesn’t come up, ever,” one of the respondents stated.
Another respondent revealed that she had heard about NSSF but she doesn’t know much about what they do, and even though a certain percentage of her salary is chopped every month, she was simply told “it goes to taxes.” As such, she is not sure whether NSSF contributions are part of the said “taxes.”
“In the past few months, we have had several engagements with employers in different sectors across the country. We have urged them to fulfil their statutory obligations of remitting social security contributions for their employees. We have even offered amnesty to help them comply,” Ayota further stated.
He also reiterated the core objectives of his recently introduced Vision 2035 strategy for the Fund which include; Expansion of social security coverage – from 11% to 50% of Uganda’s working population by 2035, Growing the Fund – from the current UGX 19.4 trillion to UGX 50 trillion by 2035 and increasing efficiency in serving customers – targeting customer satisfaction rate from the current 86% to 95% by 2035.
Significance of the whistleblower campaign
“Once we receive a complaint from a whistleblower, we initiate an investigation. Should we prove that the allegation is true, the employer is offered an opportunity to comply and settle the matter amicably. Where the employer stubbornly refuses to co-operate, other drastic measures come into force including prosecution and the application of the punitive penalties permitted within the law,” Ayota said.
Over the last two years, he noted, NSSF has recovered UGX 8,969,549,733 through litigation.
“We currently have over 390 cases and expect to recover even more with this new whistleblower platform. Members, remember it is your money. It is your future. I therefore encourage all workers to visit https://whistleblower.nssfug.org to report their cheating employers and safeguard the future you aspire to achieve,” he added.