N
Log in

Login to your account

Username *
Password *
Remember Me



NATIONAL SOCIAL SECURITY FUND ACT.

ARRANGEMENT OF SECTIONS.

   Section

INTERPRETATION.

   1.   Interpretation.

ESTABLISHMENT AND MANAGEMENT OF THE FUND.

   2.   Establishment of the fund.

   3.   Board of directors.

   4.   General functions and duties of the board.

   5.   Meetings of the board.

ELIGIBILITY, MEMBERSHIP AND REGISTRATION.

   6.   Eligible employee.

   7.   Compulsory registration of employers and eligible employees.

   8.   Excepted employment.

   9.   Cancellation of registration.

   10.   Voluntary membership.

CONTRIBUTIONS.

   11.   Payment of standard contribution by employers.

   12.   Employee's share of standard contribution.

   13.   Special contribution by contributing employers.

   14.   Penalty for delay of payment of contribution.

   15.   Certificate of exemption.

   16.   Supplementary payment.

   17.   Payment in respect of certain Government employees.

   18.   Provisions for persons formerly in excepted employment.

BENEFITS.

   19.   Description of benefits.

   20.   Age benefit.

   21.   Withdrawal benefit.

   22.   Invalidity benefit.

   23.   Emigration grant.

   24.   Survivor's benefit.

   25.   Regulations regarding benefits.

   26.   Determination of claims and questions.

   27.   Correction of erroneous decision otherwise than by appeal.

FINANCE.

   28.   Financial resources of the fund.

   29.   Annual and supplementary budget.

   30.   Investment.

   31.   Power to borrow.

   32.   Accounts and audit.

   33.   Annual report.

   34.   Member's account.

   35.   Interest on account.

   36.   Reserve account.

   37.   Exemption from stamp duty.

   38.   Exemption from income tax.

ADMINISTRATION.

   39.   Managing director.

   40.   Deputy managing director.

   41.   Secretary to the fund.

   42.   Staff.

   43.   Inspectors.

LEGAL PROCEEDINGS.

   44.   Offences and penalties.

   45.   General punishment.

   46.   Institution and conduct of cases.

   47.   Jurisdiction of magistrates.

   48.   Recovery of sums due to the fund.

   49.   Evidence.

MISCELLANEOUS.

   50.   Existing schemes.

   51.   Reciprocal agreements.

   52.   Regulations.

   53.   Forms.

      First Schedule   Excepted employment.

      Second Schedule   Certificate of exemption.

CHAPTER 222
NATIONAL SOCIAL SECURITY FUND ACT.

Commencement: 1 December, 1985.

   An Act to provide for the establishment of a National Social Security Fund and to provide for its membership, the payment of contributions to, and the payment of benefits out of, the fund and for other purposes connected therewith.

INTERPRETATION.

1.   Interpretation.

   In this Act, unless the context otherwise requires—

   (a)   "age", where actual age is not known, includes apparent age;

   (b)   "appointed day" means the 1st"> December, 1985;

   (c)   "benefit" means a benefit payable under this Act;

   (d)   "board" means the board of directors established under section 3;

   (e)   "contract of service" means any contract of service or apprenticeship or learnership whether written or oral and whether express or implied;

   (f)   "contributing employer" means any employer who—

      (i)   belongs to a class or description of employers specified as contributing employers by an order made under section 7; or

      (ii)   has registered voluntarily as a contributing employer under section 10;

   (g)   "contribution" includes the standard contribution and the special contribution;

   (h)   "eligible employee" has the meaning assigned to it by section 6;

   (i)   "employee" means any person who—

      (i)   is employed in Uganda under a contract of service;

      (ii)   is ordinarily resident in Uganda and is employed outside Uganda (or partly in and partly outside Uganda) under a contract of service entered into with the employer who resides in a place of business in Uganda; or

      (iii)   is ordinarily resident in Uganda and is employed under a contract of service as master or member of the crew of any ship, or as pilot, commander, navigator or member of the crew of any aircraft, where the owner of the ship or aircraft (or managing owner if there is more than one owner) or the manager resides in or has a place of business in Uganda;

   (j)   "employee's share" in relation to contribution means such part of that contribution (if any) as the employer may lawfully deduct from the wage of the employee in respect of whom that contribution is payable;

   (k)   "employer" includes the Government, manager or a subcontractor who provides employees for the principal contractor; but where a person enters into a contract by which some other person is to provide employees for any lawful purpose of the first mentioned person and it is not clear from the contract which of the two persons is the employer, the first mentioned person shall be deemed, for the purposes of this Act, to be the employer;

   (l)   "excepted employment" means any one of the employments specified in the First Schedule to this Act;

   (m)   "excepted person" means a person in excepted employment;

   (n)   "exempt person" means any person in respect of whom a certificate of exemption has been issued pursuant to the Second Schedule to this Act;

   (o)   "financial year" means a period of 12 months starting on the 1st"> of July and ending on the 30th"> of June in any year;

   (p)   "functions" includes power and duties;

   (q)   "fund" means the National Social Security Fund established under section 2;

   (r)   "local authority" means an administration of a district, a municipal council or the National Water and Sewerage Corporation;

   (s)   "managing director" means the managing director of the National Social Security Fund, appointed under section 39;

   (t)   "member" means a person who is registered as a member of the fund pursuant to this Act;

   (u)   "Minister" means the Minister responsible for social security;

   (v)   "non-resident employee" means an employee not ordinarily resident in Uganda who is to be employed in Uganda for a continuous period of not more than three years or such longer period as is allowed in any particular case by the managing director; but where a nonresident employee employed by an employer in Uganda becomes at any time an employee ordinarily resident or becomes employed in Uganda in circumstances which qualify him or her to be an eligible employee under this Act, he or she shall not cease to be, in relation to that employer, a non-resident employee before the end of a month;

   (w)   "reserve account" means the reserve account of the fund established pursuant to section 36;

   (x)   "special contribution" means the contribution payable under section 13;

   (y)   "standard contribution" means the contribution payable under section 11;

   (z)   "wages" means all emoluments which would be payable in cash to an employee under his or her contract of service if no deductions were made, whether in pursuance of any law requiring or permitting any deduction or otherwise.

ESTABLISHMENT AND MANAGEMENT OF THE FUND.

2.   Establishment of the fund.

   (1) There is established a fund to be known as the National Social Security Fund, into which there shall be paid all contributions and all other payments made in accordance with this Act and out of which there shall be paid all benefits and other payments required by this Act.

   (2) The fund shall be a body corporate having perpetual succession and a common seal, and may sue or be sued in its corporate name and may, in connection with its functions under this Act purchase, hold, manage and dispose of any property, enter into contracts and do or suffer all such other things as bodies corporate may lawfully do or suffer.

   (3) The fund shall have a common seal, and the seal shall be authenticated by the signature of the chairperson and one other member of the board or of any other two members of the board authorised by resolution of the board either generally or specially to act in that behalf.

3.   Board of directors.

   (1) The governing body of the fund shall be a board of directors consisting of a chairperson, the managing director and not less than six nor more than eight other members.

   (2) The chairperson and the other members of the board, other than the managing director, shall be appointed by the Minister for a period of three years and upon such terms and conditions as may be specified in the instruments of appointment and shall be eligible for reappointment.

   (3) The Minister shall revoke the appointment of the director—

   (a)   if he or she is unable to perform the functions of his or her office;

   (b)   if he or she is insolvent or bankrupt; or

   (c)   if he or she is convicted of an offence involving fraud or dishonesty.

   (4) A director may, by writing under his or her hand addressed to the Minister, resign his or her office.

4.   General functions and duties of the board.

   (1) The board shall operate and manage the fund and exercise such functions, powers and duties as are conferred upon it by this Act.

   (2) In the performance of its functions and duties and in the exercise of its powers, the board may do all lawful things that are necessary or expedient to secure the due execution of the purposes of this Act.

   (3) The board shall ensure that there is secure, profitable and effective financial management of the fund for the benefit of the workers in particular and the country at large.

   (4) The board may delegate any of its powers to a committee or any person as it may deem necessary.

5.   Meetings of the board.

   (1) The chairperson shall preside at all meetings of the board, but in his or her absence any member appointed in that behalf by the members present shall preside.

   (2) The board shall meet for the discharge of its functions at least once every three months at such time and place as the chairperson may appoint or upon the request of the majority of the board members.

   (3) The quorum at any meeting of the board shall be five.

   (4) Decisions of the board shall be taken by a simple majority of the members present and voting, with the person presiding having a casting vote.

   (5) The board may invite any person who is not a member to participate in the deliberations of the board, but such person shall not be entitled to vote.

ELIGIBILITY, MEMBERSHIP AND REGISTRATION.

6.   Eligible employee.

   (1) Any employee of or above the age of 16 and below the age of 55 years except—

   (a)   an employee employed in excepted employment;

   (b)   a non-resident employee;

   (c)   an employee not employed in Uganda,

who is declared by the Minister to be such employee and any farmer or artisan who is a member of a cooperative society shall, for the purposes of this Act, be deemed to be an eligible employee.

   (2) Notwithstanding subsection (1), the Minister may, by statutory order, declare the following employees or classes of employees eligible employees—

   (a)   any non-resident employees or any class of nonresident employees;

   (b)   any employees not employed in Uganda or any class of employees not employed in Uganda,

and he or she may, in such order or in a subsequent order, modify the application of this Act to any or all such employees or class of employees mentioned in the order.

7.   Compulsory registration of employers and eligible employees.

   (1) The Minister may, by statutory order—

   (a)   specify any class or description of eligible employees as persons who shall be registered as members of the fund; and

   (b)   specify any class or description of employers as persons who shall be registered as contributing employers.

   (2) When the Minister has made an order under subsection (1), any person to whom the order applies shall register himself or herself in the prescribed manner; and any employer of a class or description specified in the order as a contributing employer, whether that employer is registered or not, shall be subject to the same extent to those provisions of this Act which apply to a registered contributing employer.

   (3) Where, in the order made under subsection (1), the Minister specifies any class or description of employers as contributing employers by reference to the number of employees, any employer affected by that order who is dissatisfied with the specification may in writing authorise the Government statistician to disclose to the Minister the number of employees, declared by that employer at the previous annual enumeration of employees and that disclosure shall be conclusive until the next enumeration.

   (4) A registered employee shall produce evidence of his or her registration and membership to his or her employer, and, if he or she changes his or her name, give all such particulars to the fund.

   (5) An employer of a class or description specified in an order made under subsection (1)(b) shall, whenever applying for a business licence, be required to produce a clearance certificate of up-to-date payments of due contributions issued by the managing director.

   (6) For the purposes of subsection (5), business licence includes a practising certificate for any profession.

   (7) No employer of a class or description specified in an order made under subsection (1)(b) shall leave or attempt to leave Uganda, whether temporarily or permanently, unless he or she is in possession of a clearance certificate issued by the managing director.

   (8) A clearance certificate shall be valid for such period from the date of issue or for such number of journeys to a destination outside Uganda as may be specified in the certificate.

8.   Excepted employment.

   (1) For the purposes of this Act, any employment specified in the First Schedule to this Act is an excepted employment.

   (2) The Minister may, by statutory instrument, amend the First Schedule.

9.   Cancellation of registration.

   Any person registered as a contributing employer who—

   (a)   ceases to employ an eligible employee; or

   (b)   throughout the two years immediately preceding his or her application under this section has employed less than the minimum number of employees required under this Act for compulsory registration,

may apply to the managing director, in the form approved by the Minister, for the cancellation of his or her registration; and the managing director shall, if he or she is satisfied with the information contained in the application, cancel the registration.

10.   Voluntary membership.

   (1) Subject to subsection (2), any employer who is not required by an order made under section 7(1) may, subject to any prescribed terms and conditions, apply for voluntary registration as a contributing employer; and any eligible employee of such employer may thereafter apply for voluntary registration as a member of the fund.

   (2) The Minister may, by statutory order, appoint a period during which registration under this section may be made.

   (3) Any member of the fund in respect of whom the standard contribution has ceased to be payable under this Act may apply in the time and in the manner prescribed to make voluntary contributions to the fund which—

   (a)   shall not be less than half of, nor more than, the average rate of standard contribution formerly payable by his or her employer; and

   (b)   shall not be payable concurrently with the compulsory standard contribution.

   (4) For the purpose of this section, "employee" includes a minister of religion; "employe

This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.