BusinessNewsPoliticsTechnology

NSSF extends amnesty to Businesses facing economic distress

The National Social Security Fund (NSSF) has today 31st March 2020, announced measures to allow businesses/employers facing economic distress to reschedule their NSSF contributions for the next three months without accumulating a penalty.

This is in support of the Government of Uganda’s interventions to combat the effect of COVID-19, on businesses in the private sector.

According to Mr. Richard Byarugaba, the Managing Director, the affected Employers majorly fall in 7 sectors: Recreation, Accommodation and Food services; Education; Trade; Transport, Storage, Real Estate & Construction; Human Health & Social Work; Manufacturing & Mining; and Agriculture, Forestry & Fishing.

The decision is informed by the fact that some Employers are grappling with inadequate cash flows, stemming from limited consumer demand and disruptions in supply value chains. The Fund’s internal analysis indicates that the number of contributing Employers in the mentioned sectors has declined by 33% in the immediate aftermath of the COVID-19 pandemic. Overall, it is estimated that about 6,800 Employers will be directly affected,” Byarugaba said.

“Employers in the above categories must agree with the Fund a payment schedule, after which they will sign a Deed of Settlement. This is because employers still have an obligation to pay Social Security contributions for their employees,” Byarugaba added.

He however clarified that businesses that do not apply for this amnesty will be expected to continue honoring their statutory obligation to remit NSSF contributions by the 15th day of every month.

He also appealed to the Fund’s members and the general public to vigorously observe all the directives that have been issued to enable our country to overcome this challenge at the earliest.

Tags

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
close-link
Close
Close