The president of Uganda has just signed the National Social Security Fund – NSSF (Amendment) Act, 2021 into law. This is good news for all workers in Uganda.
These are the key amendments which will benefit employees:
- Additional voluntary contributions. All employees are now eligible to save beyond the mandatory 5 per cent. Self-employed people can also apply for membership in the fund and make voluntary contributions to the fund. This is good news for anyone who wishes to accelerate their journey towards a secure retirement. NSSF is one of the most secure funds in Uganda which is backed by the government and pays relatively better interest.
- More benefits. The new act gives the board powers to recommend more benefits to savers. I am hoping that the fund will introduce benefits to help savers acquire decent houses, educate their children, start businesses, and provide medical insurance.
- Mid term access. The new law enables eligible savers to access 20 per cent of their savings when they reach 45 years and have saved for at least 10 years. Workers who choose to withdraw this cash will have options to invest a bit of their funds and also to get out of financial hardship. Personally, I will not withdraw the money since I believe NSSF is a better vehicle to manage my retirement savings.
- Every employee is now eligible to register with NSSF. All employers are now mandated to register their workers with NSSF and pay the mandatory 10 per cent. This is good news for people employed in informal sectors as they will get to benefit from the pension fund.
Overall the new NSSF law is good news for the pension market in Uganda. All employees should embrace it and exploit the new opportunities it brings!