The NSSF Act the NSSF Act, 2022 (As amended) under section 7 (2) states, “Every employer, irrespective of the number of employees, shall register with the fund as a contributing employer and shall make regular contributions for his or her employees in accordance with this Act and regulations made under this Act.”

However, across Uganda, it is common practice for many employers in the private sector to deny their employees retirement benefits. This is especially in the private, informal sector where employers view NSSF contributions as an extra cost.

The NSSF Act requires all employers to remit 15% of the monthly emoluments of the employee – with a 10% contribution from the employer and 5% from the employee. Employees are often engaged but no contracts are issued. This makes their tenure with the employer non-binding with no benefits whatsoever.

In a sensitization workshop organized by URBRA and Uganda Law Society, it was revealed that some law firms have adopted the same practice, leaving some lawyers without retirement benefits. Speaking at the workshop in Mbarara, Mr. Allan Musasire the counsel member of the Uganda Law Society representing Western Uganda observed that this attitude had left many young lawyers deprived of retirement savings.

Ms. Rita Nansasi URBRA’s Chief Manager Legal Services, urged all employers to ensure their employees are covered under the basic retirement savings arrangement in NSSF, so they don’t retire into poverty.

Apart from preventing old-age poverty, providing a retirement plan for the employee also improves productivity and casts the employer in good light. It helps to retain talent within the institution, growing the business, saving the company recruiting costs and turnover which affects business operations in the long run.

It is therefore prudent that every employer thinks about their public image that is portrayed by the way their employees live in retirement whether in squalid conditions or in bliss and dignity.

Because retirement is an individual responsibility, employees will often opt for employers that have their best interests at heart through policy that include retirement benefits. Overall, it is in the best interest of employers to provide the necessary tools for their employees to save for retirement even beyond what is mandated by law.