NSSF offers full penalty relief in new employers’ amnesty drive

DAR ES SALAAM: IN a move aimed at boosting compliance while easing the burden on businesses, the National Social Security Fund (NSSF), has launched a nationwide amnesty programme granting employers, a chance to clear contribution arrears and enjoy penalties waivers of up to 100 percent.

According to a public notice issued by the Fund, which availed to this journalist, employers who settle their outstanding principal contributions within specified timelines will qualify for penalty waivers ranging from 50 to 100 per cent. The amnesty programme runs from this month to December this year.

Under the arrangement, employers who pay all outstanding contribution arrears by the end of August 2026 and remain up to date with their monthly remittances until December 31, 2026, will receive a full waiver of penalties.

Those who clear their principal arrears by the end of October this year and continue complying with contribution requirements until the end of the year will qualify for a 75 per cent reduction of penalties. Employers who settle their arrears by the end of December will receive a 50 per cent waiver. Employers who had no outstanding principal contributions as of May 31, 2026, and remain compliant through December 31, 2026, will also be granted a 100 per cent penalty waiver.

The initiative is expected to provide relief to businesses that have accumulated debts while at the same time enabling workers’ social security contributions to be regularised.

The amnesty comes as NSSF intensifies efforts to improve compliance among employers and strengthens the country’s social security system.

Under Tanzanian law, every registered employer is required to remit social security contributions amounting to 20 per cent of an employee’s monthly wage, with the employee’s share not exceeding 10 per cent. Contributions must be remitted within the prescribed period after salaries are paid.

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Failure to remit contributions on time attracts penalties. The NSSF Act provides that unpaid contributions are subject to a penalty equivalent to 5 per cent of the outstanding amount for every month or part of a month that the payment remains unpaid. The penalties are recoverable as a debt owed to the Fund.

Social security experts note that prolonged noncompliance by employers can negatively affect workers, including delays in accessing benefits linked to their contribution records.

Among the benefits provided by the Fund are retirement pensions, invalidity pensions, survivors’ pensions, maternity benefits, unemployment benefits, funeral grants, and health insurance related benefits.

Industry observers say the amnesty presents a rare opportunity for employers to regularise their records without bearing the full burden of accumulated penalties while ensuring that employees’ social security accounts are updated and protected.

The Fund has urged all affected employers to take advantage of the programme before the December 31, 2026 deadline, after which normal enforcement measures and penalty provisions will continue to apply.

Established under the National Social Security Fund Act, the fund is mandated to register employers and employees, collect contributions, invest members’ funds, and pay social security benefits. NSSF covers workers in the private sector, self-employed individuals, employees of international organisations operating in mainland Tanzania, and foreign employees working in the country.