The NASSIT Scheme is financed from members' contributions and investment income
Employers' responsibility
The responsibility for the payment of contributions lies on the employers who must make sure that their employees are contributed for at the end of every month.
How are contribution payments reported?
The payment of contributions should be accompanied by a duly completed Advice of Payment of Contribution form, (the (SS4A).
Contributions can be paid either by cash, cheque or bank transfer to any NASSIT office.
- Employers should deduct 5% from the earnings of an employee at the end of every month, as that employee’s Social Security contribution;
- The employer should then add 10% of the employee’s earnings as that employer's contribution on behalf of the employee;
- The total 15% contribution should be paid to NASSIT within fifteen days after the end of the month.
- If a person is concurrently employed by two or more contributing employers, all the employers must pay social security contributions on the wages/earnings given to that employee.
- No employer is allowed by law to reduce, whether directly or indirectly, the earnings or other emoluments of any member of the Scheme.
- A self-employed/voluntary contributor pays the full 15% on his/her declared income.
- Directors of companies are considered employees if they are engaged under a contract of service and paid a salary on top of fees.
- Contributions are payable for contract, part-time/casual employees.
For the late payment or non-payment of contributions:-
- The amount due shall attract an interest equivalent to the 90-day Treasury bill rate, plus twenty percent of that rate compounded on a monthly basis;
- The Director General shall serve a demand note on the defaulting employer; and if payment of the contribution and interest is not made within thirty days after the service of the demand note, another ten percent of the 90-day Treasury bill rate of the total amount shall be charged;
- The Director General shall then cause legal proceedings to be instituted to collect or recover the contribution, together with the interest.
- he commits an offence, and upon summary conviction shall be liable to a fine not exceeding Le5,000,000.00 (Five million leones), or an imprisonment for a period not exceeding three months, or both fine and imprisonment;
- there shall then be the immediate registration of all the employees concerned. 11
- the contributions for the period for which the employer fails to register his employees shall be paid as arrears together with interest and penalty.
