The National Social Security Fund (NSSF) has issued an ultimatum to defaulting employers to settle their social security contributions arrears and benefit from a waiver of all penalties that result from non-payment.
Announcing the ultimatum on Tuesday, NSSF Deputy Managing Director Gerald Paul Kasaato said the Fund will institute court proceedings targeting employers that do not take advantage of the amnesty.
“This is a special initiative intended to help employers settle all their outstanding arrears and accrued interest. Those who do so and clear arrears to a zero balance will benefit from a 100% waiver of the financial penalty,” Kasaato said.
“This offer is open to three categories of employers, that is, those with outstanding contributions; employers who signed deeds of settlement with the Fund from previous compliance assessments; and unregistered employers with an obligation to regularise their status with NSSF.
The amnesty will close on May 11, 2026.
Section 14 (1) of the National Social Security Fund Act (Cap 230) empowers the Fund to levy a 10% penalty on the outstanding contributions, and after one month of non-payment, an additional 10% penalty on the original amount of that outstanding contribution.
However, section 14 (2) of the Act also gives authority to the Managing Director to waive the whole or part of the penalty, provided an employer fulfills certain conditions.
The NSSF deputy Managing director said during the 60-day window, the employers who have not yet remitted their employees controbutions will not be penalised.
“The conditions for a waiver are just 2: an employer must undertake a self-assessment and determine the amount of contributions owed, pay all outstanding amounts and interest accrued, and thereafter apply for this amnesty. It is a simple exercise that can be in a few days,” Kasaato said.
According to figures released by the Fund, about 35,000 employers are projected to benefit from the amnesty window, and the amount of contributions in default involves close to 700,000 employees.
The Fund also projects to collect about shs 30 billion by May, 11, 2026, and a total of shs164 billion by December 2026.
Employers that do not take advantage of the amnesty window will be subjected to litigation at their own cost, NSSF said.
“We urge all employers to take advantage of this opportunity to benefit from the penalty waiver. Compliance also enables employers to enjoy business opportunities that come with being up-to-date with NSSF contributions, given that to do business with the government of Uganda, a business requires NSSF clearance,” Kasaato added.