The National Social Security Fund was established under the National Social Security Fund Act [Cap. 50 R.E 2018] to provide social security services to members from private and informal sectors.
NSSF covers the following categories of employers and employees:-
A. Private Sector which includes:-
- Non-governmental organizations
- Embassies employing Tanzanians
- International organizations
- Organized groups in the informal sector
OUR CORE FUNCTIONS
- Collection of Contribution
- Payment of Benefit
NSSF covers members from the following categories
- Private Sector employees
- Foreigners employed in Mainland Tanzania (Expatriates)
- Non Governmental employees (NGOs)
- Employees of the international Organizations operating in Mainland Tanzania
- Self employed & informal sector workers - Voluntary members
The scheme is financed through contributions at the rate of 20% of employees’ salary. The employer is required to deduct from employee’s gross salary the amount of contribution not exceeding 10% of the employee’s salary. The employer adds the remaining balance to make the required contribution rate of 20%.
NSSF is a fully funded scheme running under defined benefit principles. All funds collected are wholly invested for the purpose of financing benefit payments.
The scheme provides seven benefits which are categorized as long term benefits and short term benefits as follows;
Long Term Benefits/Pensions
- Retirement Pension
- Invalidity Pension
- Survivor's Pension
Short Term Benefits/Pensions
- Funeral Grant
- Maternity Benefit
- Unemployment Benefit
- Health Insurance Benefit
Pension is a term which expresses all long-term benefits offered by the scheme. It defines periodical payments given to a retired member, invalid persons and survivors of the deceased member to replace the loss of income resulting from old age, disability or death.Important issues under NSSF Benefits
NSSF pension benefits are members’ right
- The benefits are paid directly to the beneficiaries without going through the employer.
- The Initial Lump Sum payment to pensioners does not form part of normal periodic pensions.
- In some schemes this amount is normally deducted from the regular pension.
- The benefits are offered to both indigenous and non-indigenous members.
- The pension will not be affected as a result of changing occupation.
- Short-term benefits payable to members during their working period such as maternity, Unemployment Benefit, and health insurance will not affect retirement benefits.