NSSF Unveils Enhanced Whistleblower Portal

The National Social Security Fund (NSSF) revealed that a significant number of employers, totaling 15,664, have not fulfilled their legal obligation to contribute funds for their employees, as mandated by law. This revelation came to light through Patrick Ayota, the Managing Director of NSSF, during a press conference that coincided with the launch of an upgraded web portal aimed at bolstering reporting mechanisms for non-compliance.

The latest iteration of the NSSF portal features additional protective functions specifically designed to empower whistleblowers in reporting instances of non-compliance. Out of the total 36,426 registered employers, only 20,764 are presently compliant, a situation that the Fund is actively working to rectify.

Ayota highlighted the stark reality: “Only 20,762 out of 36,426 registered employers are actively remitting contributions to the Fund, resulting in a compliance rate of just 57%. This implies that over 15,000 employers are not fulfilling their obligations, thereby depriving their employees of their retirement savings. Unfortunately, only 107 cases are reported monthly.”

The upgraded web-based whistleblower portal signifies a strategic move to safeguard employees’ rights, ensure compliance, and work towards achieving a targeted 60% compliance rate in the 2023/24 financial year. This revamped platform introduces new features, including complete anonymity for whistleblowers and an automatic tracking system for reported cases, serving to protect those who report non-compliance from potential repercussions.

Moreover, the portal enables government labor inspectors to report non-compliant government contractors as stipulated by the new NSSF Act, which mandates all employers, regardless of size, to remit social security contributions to their employees. Ayota emphasized the Fund’s swift actions upon receiving reports, aiming to foster compliance and protect employees’ retirement savings.

The process involves giving reported employers an opportunity to comply and resolve issues amicably. However, in cases of non-cooperation, the Fund resorts to stringent measures, including legal action and penalties permitted by law. Over the last two years, the Fund has successfully recovered UGX 8,969,549,733 through litigation, with over 390 ongoing cases. The enhanced whistleblower platform is anticipated to yield increased recoveries.

Non-compliance scenarios include employers neglecting to remit monthly social security contributions, under-declaring staff salaries to reduce contributions, and failing to contribute the mandatory 10% atop their employees’ 5% contributions.

The upgraded whistleblower portal is heralded as a pivotal advancement in safeguarding employees’ rights and bolstering NSSF compliance. By prioritizing anonymity and introducing a robust tracking system, the NSSF is actively championing a more secure financial future for its members.

Ayota stressed the importance of member engagement, stating that the portal upgrade will empower members to take charge of their contributions and facilitate smoother follow-up procedures.