DODOMA: THE government has introduced significant reforms to the country’s social security legislations, aimed at addressing existing challenges and improving benefit access for members.
These changes are detailed in the Social Security Laws (Amendments) Bill, 2024, which was presented in the National Assembly yesterday for its second and third readings and subsequently endorsed by Members of Parliament.
Minister of State in the Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability), Mr Ridhiwani Kikwete explained that the bill proposes amendments to three key social security laws: the National Social Security Fund Act (Cap. 50), the Public Service Social Security Fund Act (Cap. 371) and the Workers’ Compensation Act (Cap. 263).
“All these changes aim to address the challenges members face when accessing their benefits,” Mr Ridhiwani said.
He noted that the reforms reflect President Samia Suluhu Hassan’s commitment to resolving issues such as delays experienced by retirees in accessing their pensions, barriers caused by late employer contributions and the need to enhance collections.
Additional challenges include unfair treatment in providing workers’ compensation for workplace injuries, delayed reporting and unnecessary payments.
The amendments seek to safeguard employees’ entitlements, ensuring that employers protect employees’ information, create an environment conducive to contributions and facilitate payments.
Under the proposed amendments to the National Social Security Fund Act (Cap. 50), Section 11A has been added to allow self-employed individuals to register and contribute to the mandatory scheme.
Section 12A has also been introduced to permit contributions from multiple employers for a single employee, with the employee’s consent.
This change is designed to ensure that employees working for more than one employer can benefit from contributions made by multiple employers.
Additionally, the amendment to Section 14(3) reduces penalties for delayed contributions from 5 per cent to 2.5 per cent.
This adjustment is intended to offer a more reasonable fine for employers facing financial constraints.
The reforms also permit contributions made by a member up to the age of seventy to be included in the pension benefit calculation, broadening the scope of benefits for those who have reached pensionable age but do not yet qualify for a pension.
ALSO READ: TIRA committed to nationwide insurance awareness campaign
The changes further provide invalidity benefits to members who are permanently incapacitated due to non-work-related diseases or injuries and increase the dependency benefits from thirty-three to thirty-six months in the event of a member’s death.
Employees will also benefit from a wider range of health facilities with which the Board can enter into agreements for health benefits.
The amendments to the Public Service Social Security Fund Act (Cap. 371) include Section 5(2), which requires employees of corporations where the government holds at least 30 per cent of the shares to register with the Fund.
The law now also allows the Board to waive additional contributions in cases where entities intend to comply with the law but are financially constrained.
Changes to the Workers Compensation Act (Cap. 263) empower the Board to vary or waive conditions related to the payment of benefits when sufficient reasons are provided.
“These amendments aim to enable the Board to provide benefits even when technical compliance issues arise,” Mr Ridhiwani said.
Additionally, the amendments allow the Director General of the Fund to consider compensation claims if the employee submitted the notification on time, even if the employer’s claim was delayed.
The law now also permits trade unions or other representatives to handle compensation claims on behalf of employees, addressing potential conflicts of interest with labour officers and Occupational Safety and Health Authority officials.
