NSSF Contributors to receive 11.5% interest for FY2023/24: Finance Minister Matia Kasaija
Drake Nyamugabwa
The Minister of Finance, Planning and Economic Development, Hon Matia Kasaija has announced the interest to be paid to National Social Security Fund (NSSF) contributors at 11.5% for the Financial Year 2023/24 which he said is declared above the 10-year average rate of inflation currently at 4.2%, and the 2023/24 inflation which stood at 3.9%.
The new interest according to the minister will be calculated and credited on the balance outstanding on the members’ accounts as of 1st July 2023.
The Finance Minister said that the fund has grown from UGX 18.56 Trillion in FY2022/23 to UGX 22.13 Trillion in FY2023/24 while investing safely.
“As per Section 36(2) of the NSSF Act (Cap 230), for the Financial Year 2023/24, I declare an interest rate of 11.5%. The Fund is indeed growing from UGX 18.56 trillion in Financial Year 2022/23 to UGX 22.13 trillion in 2023/24, an increase of 19.2%. The Fund is investing in the right assets in Fixed Income, Real Estate, and Equities. The delicate balance between risk and return is demonstrated by the concentration primarily in Fixed Income (79.2%), which is by far the safest investment asset” he said
During the 12th Annual Members Meeting held on 26th September 2024 at Serena Hotel, the finance minister added that the Fund is preserving and growing the value of members’ savings having consistently paid more than 2% above the 10-year average rate of inflation for more than 10 years and counting, and funding startups in agriculture.
“Furthermore, it is gratifying to note that the Fund is engaging in the real economy through funding startups and directly supporting agriculture, by doing so, it is creating its members and guaranteeing its future” he said
Managing Director NSSF Mr. Parick Ayota said that the Fund has hit UGX20 Trillion this financial, 18 months ahead of our target, urging Ugandans to work together to make the country better.
Hon. Davinia Esther Anyakun, Minister of State for Gender, Labour and Social Development (Labour, Employment and Industrial Relations): Lastly, government has started a consultative process to structure Regulations for the new Voluntary Products.
She called for enhanced strategies to increase coverage, given that the legal obstacle limiting the eligibility threshold to 5 employees was repealed.
“I am, therefore, glad to note that the Fund has instituted strategies to increase coverage from 11% to 50% of the working population by 2035” she said
She applauded the NSSF management for recruiting previously unserved segments, including the informal sector and the agricultural sector and fully embracing the Environmental, Social & Governance (ESG) principles, having incorporated environmental stewardship, social responsibility, and economic resilience in its operations.
The Chairman NSSF Dr. David Ogong said “It is a great opportunity to be given the responsibility of steering this fund & I and the board don’t take it lightly”
Meanwhile while delivering an unqualified opinion, Edward Akol, Auditor General said, “I have audited the financial statements of the National Social Security Fund set out on pages 13-98, which comprise the statement of net assets as at 30th of June 2024 and the statements of changes in net assets available for benefits, statements of changes in fund reserves and statement of cash flows for the year then ended and notes to the financial statements including material accounting policies”
He added “In my opinion, the financial statements present a true and fair view of the Financial Position of the Fund as at 30th June 2024 and of its Financial Performance and its cash flows for the year that ended in accordance with the international reporting financial standards”
The NSSF Act (Cap 230), now enables the Fund to recruit employees from the informal sector, the self-employed, and the public sector voluntarily.
