In light of the Coronavirus pandemic and its effects on businesses, the National Social Security Fund (NSSF) has announced measures to ease the cash flow burdens of contributing employers and businesses in the private sector.
Ugandan employers/businesses facing economic distress due to the pandemic shall be allowed to reschedule their NSSF contributions and pay them at a later date without penalty or accruing any interest.
This offer takes effect from 31st March 2020 and will run for a period of three months.
“We recognize that businesses are suffering at this time especially the businesses in the recreation, accommodation, and food service sectors. We have noted from our databases, that 67% of these businesses have not been able to pay their March submissions because they have been out of business. Another sector that has been affected is the education sector since schools and academic institutions have been closed since March 20th 2020. Businesses that import products and services especially from China have also not been operating normally for some time now due to strains in the supply chains. We recognize that all this will affect at least 6,800 employees, which is why we have provided these measures for them to catch up with their savings when things get better” remarked the NSSF Managing Director, Richard Byarugaba
“We believe that for every business, payment of salaries and other benefits should be among the top priorities in order to operate normally and grow. Therefore, this rescheduling should help businesses to re-plan and re-allocate resources in this 90-da y grace period.” Richard added
Affected Businesses shall be required to apply to the fund via email on firstname.lastname@example.org to work out the detailed modalities.
Businesses that do not apply for this amnesty will be expected to continue remitting their contributions by the 15th day of every month as per their statutory obligation.