The National Social Security Fund (NSSF) has issued a 60-day ultimatum to employers who have failed to remit workers’ social security contributions, warning that legal action will be taken against those who do not clear their arrears.
The Fund has opened a special amnesty window allowing employers to settle outstanding contributions without paying accumulated penalties. The initiative, announced during a press briefing at Workers House in Kampala, is intended to encourage compliance while giving employers a chance to regularise their obligations.
Deputy Managing Director Gerald Paul Kasaato said the move aims to help businesses clear long-standing debts to the Fund. Employers who settle their arrears to a zero balance during the amnesty period will benefit from a 100 percent waiver on financial penalties that would normally apply. The amnesty runs from March 10 to May 11, 2026.
According to the Fund, the waiver applies to three categories of employers: companies with unpaid NSSF contributions, businesses that had previously signed settlement agreements after compliance assessments, and firms that have never registered with the Fund despite being legally required to do so.
Kasaato explained that the process is straightforward. Employers must conduct a self-assessment to determine the amount owed, pay all outstanding contributions together with the interest accrued, and then apply for a penalty waiver. Once these conditions are met, the waiver can be processed within a few days.
The Fund warned that employers who ignore the amnesty will face court proceedings. Under Section 14(1) of the National Social Security Fund Act, a 10 percent penalty is imposed on unpaid contributions, with an additional 10 percent added if payment is not made within one month. However, Section 14(2) allows the Managing Director to waive penalties under specific circumstances, which forms the legal basis for the current initiative.
More than 28,000 employers are currently in default, affecting about 700,000 workers whose savings have not been remitted. The amnesty could benefit around 35,000 employers, with the Fund expecting to recover about UGX 30 billion during the period and up to UGX 164 billion by December 2026.
In Uganda, employers must remit social security contributions equal to 15 percent of an employee’s salary. These savings support workers after retirement or when they leave employment. Improving compliance, officials say, is essential to protect workers’ benefits and sustain the Fund, which currently manages assets worth about UGX 29.5 trillion and serves more than 3.4 million members.