Minister warns employers on employees’ contributions
DAR ES SALAAM: THE government has taken a firm stance against private sector employers who deduct their employees’ contributions to the National Social Security Fund (NSSF) without remitting them, saying this is a violation of the law and deprives workers of their rights.
The Minister of State in the Prime Minister’s Office for Labor, Youth, Employment, and Persons with Disabilities, Deogratius Ndejembi, made these comments during an official visit to the NSSF offices in Dar es Salaam.
Minister Ndejembi urged employers engaging in such behavior to cease immediately, warning that those found guilty would not be spared.
He said deducting money from an employee without remitting it to Social Security Funds causes inconvenience to them upon retirement or termination of employment, resulting in delays in receiving their various entitlements.
“Some employers only remit ten percent of the employer’s contribution to the Funds, but they do not limit the employee’s ten percent, which is contrary to the laws of the Social Security Funds. The law requires the employer to deduct the full twenty percent from the employee legally,” he stated.
Mr Ndejembi addressed some of the retirees’ grievances, particularly the prolonged wait for their benefits, attributing it to some employers’ failure to remit their employees’ contributions on time.
This situation causes significant inconvenience to retirees and leads to them believing that the Social Security Funds are responsible for the delay.
“We will now enforce strict measures against all employers who do not remit contributions on time. This issue is in line with the law that established these Social Security Funds to ensure timely remittance of contributions by employers. Failure to comply will result in strict enforcement,” he emphasised.
He commended NSSF for its performance, highlighting the Fund’s growth since President Samia Suluhu Hassan took office in March 2021. The value of the NSSF was 4.8 tr/-, but under the leadership of the sixth-phase government within three years, its value has increased to Sh8.1 trillion.
“This significant growth reflects the remarkable achievements of the sixthphase government and the outstanding performance of the Fund by the Board of Trustees, Management and Employees of the NSSF,” he added.
He said that despite these achievements, there are fundamental things they want to see happening, including enhancing quality customer service for Tanzanians who contribute to the Social Security Funds to ensure they are served promptly and their challenges are being received and addressed. However, he noted that in improving its services,
NSSF has developed ICT systems to ensure that members receive services more quickly. Regarding investment, Ndejembi stated that he will ensure that Tanzanians’ remitted contributions to the Social Security Funds are invested properly and fairly in projects yielding positive results and returning members’ contributions to pay benefits on time.
NSSF’s Director General, Mr Masha Mshomba, said NSSF continues to focus on improving customer service, which is outlined in the Fund’s Strategic Plan. Currently, they are focusing on using ICT to achieve this goal. He added that they will continue to make productive investments for the growth of the Fund.
