Tanzanian government warns employers over delaying statutory contributions

Dar es Salaam. The government issued a stern warning to private sector employers regarding any delays in remitting workers’ contributions to the National Social Security Fund (NSSF).

During a visit to the NSSF offices in Dar es Salaam on Tuesday, the Minister of State in the Prime Minister's Office (Labour, Youth, Employment, and Persons with Disabilities), Deogratius Ndejembi, said it is an offence to delay the monthly contributions as it deprives workers of their rightful benefits upon retirement.

Furthermore, Mr Ndejembi noted that some employers only submit ten percent of the employer's contribution to the fund, holding the other 10 percent, which employers themselves are supposed to contribute.

“This is contrary to the law, which requires the employer to pay the full installment, amounting to twenty percent of the employee’s salary, to the fund,” he said.

Mr Ndejembi said deducting money from the employee without submitting it to the social security fund causes inconveniences upon retirement or when the worker ends employment.

He further highlighted that some of the grievances voiced by retirees stem from prolonged waits for their benefits, a predicament exacerbated by employers failing to submit contributions in a timely manner.

"Henceforth, we will enforce strict measures against all employers who fail to submit contributions on schedule, as adherence to this obligation is mandated by law."

In a separate development, Mr Ndejembi commended the NSSF for its exemplary performance, highlighting a notable increase in the fund's growth since President Samia Suluhu Hassan assumed office in March 2021.

According to him, within the span of three years, the value of NSSF has surged from Sh4.8 trillion to Sh8.1 trillion, showcasing a remarkable upward trajectory.

"This significant growth underscores the government's achievements and the commendable performance of the fund. We extend our appreciation to the board of trustees, management, and employees of NSSF for their diligent efforts," he remarked.

Despite the commendable performance, Mr Ndejembi emphasised the government's desire for the fund to enhance its customer service and address any challenges faced by its members.

However, he noted that NSSF has taken proactive steps to improve its services by developing ICT systems, thereby ensuring quicker delivery of services to its members.

Mr Ndejembi affirmed his commitment to ensuring that NSSF’s funds are prudently and equitably invested in projects that will yield positive results, thereby ensuring timely disbursement of benefits to members.

The Managing Director of NSSF, Mr Masha Mshomba, reiterated the fund's dedication to enhancing customer service through the strategic utilisation of ICT.

 He pledged to persist in making productive investments to further bolster the growth of the fund.