The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Platform for Labour Action wants all National Social Security Fund- NSSF members to get mid-term access to their savings.
The Legal Officer of the organisation, Naimah Bukenya on Thursday submitted views to the joint committee for Gender and Finance on the NSSF Bill.
The Bill seeks to among others to amend NSSF Act, 1985, to make it mandatory for all workers to register and contribute to NSSF, allow self-employed people to contribute to NSSF, provide for mid-term access to benefits for only voluntary members and that the NSSF board shall have a role in the appointment of the managing director.
Bukenya urges the committee to consider amending the provision for mid-term access to cater for all members of the fund.
Bukenya, however, says that restrictions should be included such as ensuring that only members aged 45 years and above can access only their accumulated 5 percent contribution and retain the balance of 10 percent (contributed by the employer).
Earlier on, the Pakwach Woman MP, Jane Avur Pacutho and Rubanda East MP, Henry Musasizi asked Bukenya to justify the need to open mid-term access to 5 percent of the employee’s contributions for only members above 45 years.
The Manager Programmes Platform for Labour Action, Lydia Bwiite said that members should get midterm access for investment or even when they lose their jobs at the age of 45 years and above.
She said that the NSSF Board of Directors can determine the criteria for getting midterm access to benefits.
However, Workers MP, Dr Sam Lyomoki asked the organisation to beef up its arguments with evidence such as figures of workers aged 45 years and above and also have a clear distinction between midterm access and benefits such as health, education, unemployment among others.
Finance Committee chairperson and Rubanda East MP, Henry Musasizi asked Platform for Labour Action officials whether they have considered the financial implications the proposal will have on start-ups and small and medium scale enterprises.
Musasizi says that should the proposal be passed, then this start-up would have to incur an extra shillings 150,000 as monthly mandatory employer contributions to NSSF.
There are close to 19.9 million Ugandans in the working-age bracket of 16 to 64 years, however PLA says that most of these workers are employed by companies that do not contribute to NSSF by employing less than 5 employees.
******
URN
