Minister warns employers who hold social security deductions

By Guardian Reporter , The Guardian
Published at 11:48 AM May 16 2024
Deogratius Ndejembi, Minister of State in the Prime Minister's Office (Labor, Youth, Employment and Persons with Disabilities)
Photo: Guardian Reporter
Deogratius Ndejembi, Minister of State in the Prime Minister's Office (Labor, Youth, Employment and Persons with Disabilities)

THE government has said it will no longer tolerate private sector employers who deduct their employees' contributions without remitting the same to the National Social Security Fund (NSSF).

Deogratius Ndejembi, Minister of State in the Prime Minister's Office (Labor, Youth, Employment and Persons with Disabilities), said this during the official visit to NSSF offices in Dar es Salaam yesterday.

He said as this is an offense according to the law and deprives workers of their rights because they fail to receive their benefits on time upon retirement.

Ndejembi urged employers with such behaviour to stop immediately because those found guilty will not be spared. Deducting money from employees without remitting it to respective social security fund causes inconvenience to workers when they retire, he said. 

"Some employers only remit 10 percent of the employer's contribution to the funds but they do not remit the employee's 10 percent which is contrary to the law which require employers to remit full 20 percent," he said.

The minister said some of the grievances of retirees, especially those waiting for their benefits for a long time, are caused by some employers who fail to remit their employees' contributions on time.

"Now we will be very strict with all employers who do not remit contributions on time because this issue is according to the law that established these social security funds to ensure that employers remit their contributions on time,” he said.

He hailed NSSF for its performance, noting that the fund's growth has increased since 2021. The value of the NSSF was 4.8trn/- but within three years, its value has reached 8.1trn/-.

He said despite the achievement, there are fundamental issues 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.

He said that in improving its services, NSSF has developed ICT systems to ensure that members receive services more quickly.

Regarding investment, Ndejembi said he will ensure that Tanzanians' remitted contributions in the social security funds are invested properly and fairly in projects that yield positive results.

NSSF director general Masha Mshomba said NSSF continues to focus on improving customer service, which is in the fund's strategic plan, adding that they are currently focus on using ICT.