Minister of Gender Labour and Social Development Hon. Betty Amongi has today 26th September 2023 applauded National Social Security Fund (NSSF) Staff for Stellar Performance despite turbulent period.
This was revealed today at Serena Hotel in Kampala during the @nssfug 11th Annual Members' Meeting.
Minister Amongi's Speech:
Remarks by Hon. Amongi Betty Ongom (MP), Minister of Gender, Labour and Social Development at the;
THE 11TH NSSF ANNUAL MEMBERS MEETING (AMM)
This morning, I stand before you the members, to report that for the last one year, the fund has made more progress than many previous years in respect to increase in collection from contributions; This despite the difficult issues which confronted us in the transition from Ministry of Finance, Planning and Economic Development (MOFPED) to Ministry of Gender, Labour and Social Development (MGLSD).
I am humbled by the support, trust and confidence the Public, Members of Parliament and stakeholders placed in me during the peak of the turbulent period.
Leadership demands that we must not run away from tackling even the most difficult challenge, so long us we Stay focus on the big picture.
Leadership is tested during hard times not during peaceful period. I want to applaud the team who kept the ship sailing in the waves and achieving highly in this tough time.
They did not relent despite all the negativity, instead, they seized the opportunity, remained committed to the vision, and today, we see the positive outlook from the presentation of the MD.
38 years ago, Uganda joined the global community under International Labour Organisation ILO and enacted the NSSF ACT, 1985 which established The National Social Security Fund, to provide for its membership, the payment of contributions to and the payments of benefits out of the Fund and for other purposes connected there.
SOCIAL SECURITY SCHEMES is A global strategy by the UN to support workers to save for long term to address vulnerability of workers during old age when they retire. It was adopted as a strategy to support the workers from plunging into poverty at retirement.
The role of social security is therefore critical particularly today at a time when the centrality of social policies and values of social justice more broadly are coming under pressure.
Social security is not a drag on economic development but a powerful force driving it forward. By prioritising social security, we are demonstrating that growth and development do not benefit from denying people a fair share of the productivity gains our societies are generating, nor are economic transformation and innovation served by leaving the poor behind.
Eliminating extreme poverty and putting a Social Protection in place is a major contribution for the realization of a number of Sustainable Development Goals beginning with the first: end poverty in all its forms everywhere.
The nexus between social protection, quality job creation and sustainable economic growth is perfectly laid out in the ILO Social Protection Floor Recommendation, 2012 (No. 202).
Social security is an important tool to prevent and reduce poverty, inequality, social exclusion and social insecurity, to promote equal opportunity and gender and racial equality, and to support the transition from informal to formal employment.
Social security is an investment in people that empowers them to adjust to changes in the economy and in the labour market, and social security systems act as automatic social and economic stabilizers, help stimulate aggregate demand in times of crisis and beyond, and help support a transition to a more sustainable economy.
Government of Uganda believes that building a robust social security system is about much more than only eliminating poverty – but also to facilitate the economic growth through strategic investments of its funds in the economy (bonds, housing etc). We have clear evidence of a positive influence of social security on economic development in Uganda where most of the government bond is purchased by NSSF.
Besides, under human capital development, social security plays a crucial role in the protection of minimum income, health care, social insurance, and other elements of the welfare which are all important for securing human capital and thus productivity gains – a perspective that is rather lopsidedly economic. It is important to note that our current social security fund members at NSSF are composed of low-income earners as the majority savers.
Those whose savings are below 10m constitute 83% of the total savers at the fund. These group earn on average a monthly income of 250.000/= per month. Those with savings ranging between 10m-50m (12%), 50m-100m (3%), above 100m (2%).
Therefore, whatever decisions we make, we must be considerate to the needs of the majority of the members.
If you are investing members’ money on other social protection intervention as housing, you must balance between targeting high end population with low income earners as a measure for social protection in terms of affordable housing. In many countries, social security interventions is used to address inequality and redistribute wealth. Most low-income housing build by social security funds have addressed low income housing targeting members.
I have directed managers of NSSF to develop a strategy for affordable housing for NSSF Members.
In February, 2023, H.E the president signed a bipartisan Bill into an Act, introducing voluntary savings and reducing mandatory contributions from 5 employees to 1 employee.
These amendments reaffirm the commitment of our government to the principle of providing universal access to social security.
Since then, we have intensified Mobilisation and sensitization targeting stakeholders to implement the New Act, to enable us expand coverage. During these engagements, I am emphasising the need for employers to comply with:
• Issuing contracts to all Employees,
• Deducting and remitting contributions of employees (indicating the names, account numbers and other details of employees)
• NSSF to ensure that they notify workers on the status of their Accounts through various means including working with labour officers to leverage outreaches to all workers.
• Provide simple ways where workers can be educated on the simplest ways to withdraw their money when they are eligible.
• conclude statutory instrument on Voluntary savings which allows all categories of people to save eg. Jua Khali, Private Sector, Corporate entities, Diaspora (UK) illegal migrants etc
I must emphasise that H.E the President demonstrated his commitment to expansion of social security through signing the new amendment Act directly assuring the elderly that NRM will always keep the promises made in its manifesto. He therefore, assured those who are still working that they, too, have a pact with the future.
And for those in the informal sector, that they have his pledge that they will get their fair share of benefits when they retire through the Act.
The work a head rest with the board and the management team. Today I am confident with the team, and with the presentation from the MD, there is a clear and dramatic demonstration that our system can still work when men and women of good will join together to make it work.
You are all here to hear what the interest will be; It is worth noting that interest’s declaration is supported by:
• How much NSSF has collected from contributions?
• How much has been invested?
• Profit and interest from investments.
• Lossess
But for the money to be invested, we must first collect contributions from employers; so the foundation of interest declared by NSSF is on collection of contributions. And when sourcing for the management team to run the fund, I look at your ability to grasp the strategic goal holistically focusing on one’s vision and strategy and be convinced that it places importance on collecting contributions and expanding coverage of social security as a foundation for investing the money.
Secondly, I look for a team player, one with the management skills of galvanizing all stakeholders to support the mission, vision and strategy of the Fund.
A person with a foresight for future planning, adaptability to changing circumstances, reliability to maintain trust, teamwork for effective decision-making, and decency to build strong relationships and treat people with decorum.
My pledge to members today is that the team here has demonstrated their resilience, proved that they are strategic thinkers, effective communicators, and willing to continuous learn and engage all stakeholders.
Together, we shall use the new law to expand and improve social security system, to adhere to the principle of universal coverage, and to significantly increase the participation rate of people with flexible employment, those in the informal sector, and migrant workers in social security programs.
Lastly, I think we all share in the same belief: that economic success is not an end in itself; social security is a staircase to social justice. We are all making our modest contribution in building such a staircase.
I thank you for your individual and collective contributions.
Posts
.jpeg)
0 Comments