The National Social Security Fund Act [CAP 50. R. E. 2018] (hereinafter referred to as ‘’the Act’’) makes it a mandatory legal requirement under section 12 for all contributing employers to remit the share of employer’s and employee’s statutory contributions to the National Social Security Fund (hereinafter referred to as ‘’the Fund’’) on a monthly basis whenever they fall due and payable.
Non remittance of the said statutory contributions by the employer attracts some adverse legal actions to be taken against defaulting employers by the board of Trustees of the National Security Fund (hereinafter referred to as “the Board’’). To deter any non-remittance of the employees’ contributions to the Fund by the employers the Board is statutorily empowered to impose a penalty where, upon proof of non-remittance, a sum equal to five percent (5%) of the amount unpaid shall be added as a penalty for each month or a part of a month after the date when payment should have been made. The said amount of penalty shall be summarily recovered as a debt owing to the Fund by the employer.
Despite the Board’s power to impose the said penalty, the Board is also empowered under Section 14(3) to remit in whole or in part any penalty imposed to the defaulting employers. The Board may, if it deems fit and desirable, remit a certain portion of the outstanding amounts of penalties, and thus give the defaulting employers second chance to comply with the legal requirements with respect to remittance to the Fund of the employees’ contributions.
In exercise of its powers under section 14(3) as shown above, the Board of the Fund has offered a general amnesty to all employers with outstanding arrears of contributions and penalty under certain circumstances and conditions as shown here below.
- All employers who will pay their outstanding arrears of statutory contributions owed to the Fund before or on 30th November, 2021 will be exempted to pay the resulting penalty by 100%.
- All employers who will pay their outstanding arrears of statutory contributions owed to the Fund before 31st December, 2021 will be exempted to pay the resulting penalty by 75%.
- All employers who will pay their outstanding arrears of statutory contributions owed to the Fund before or on 31st January, 2022 will be exempted to pay the resulting penalty by 50%.
This amnesty is effective only from 1st October, 2021 and it covers all employers with arrears of statutory contributions and penalty for the period up to 30th June, 2021.
Therefore, It is upon to all the employers who are duty bound to monthly remit the statutory contributions to the Fund to timely cease and effectively utilize the given second chances as an amnesty to comply with the legal requirements and avoid adverse legal actions to be taken against them by the Board.
Important Notice:
This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
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