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Minister: Employers’ failure to remit pension contributions to face 20m/- penalty

Mavunde was responding to a question raised by Samia Magogo,Special Seats Legislator during a question and answer session in Dodoma.

Minister: Employers’ failure to remit pension contributions to face 20m/- penalty

Mavunde was responding to a question raised by Samia Magogo,Special Seats Legislator during a question and answer session in Dodoma.

14 November 2017 Tuesday 13:46
Minister: Employers’ failure to remit pension contributions to face 20m/- penalty

By Azania Post Reporter

A  heavy penalty of up to shillings 20 million is awaiting disobedient employers in Tanzania who fail to remit their workers monthly contribution to the pension funds, the Deputy Minister of State, Prime Minister's Office, Labour, Youth and Employment, Anthony Mavunde, has  informed the House in Dodoma

Mavunde was responding to a question raised by Samia Magogo,Special Seats Legislator during a question and answer session .The Mp had wanted  to understand measures taken by the  Tanzanian government  against disobedient employers who do not send their workers contributions to the pension funds.

Reacting deputy Minister Mavunde , said it is the government  intention to see that all workers in public and private sector are registered with pension funds and employers remit their monthly deductions.

“According to the pension fund act No 8 any employer who  fails to remit the contribution to these  funds is liable in a jail or  shillings 20 million as fine”, he said.

He said the government would not hesitate to take stern measures against the culprits to ensure that employees live good life after retired from work.

 The  problem  of some employers who  fail to remit their workers contributions to the pension funds in the country  has been on increase , forcing some fund to take measures.

Early this year the National Social Security Fund (NSSF)  issued a two months ultimatum to 3,234 employers in Dar es Salaam to pay arrears of workers monthly contributions.

The NSSF Acting Director for Operations, James Oigo, was quoted as saying that up to March 2016, a total of 21.4bn/- had not been submitted as required by the scheme laws and regulations.

"We are giving them two months to pay their arrears. For us going to court is the last resort.

They are our customers and we do not want to ruin the relationship we have with them. But after two months we will have no option other than suing them," he said.

 According to NSSF Act Section 14 of 1997 all employers are required to present their monthly contributions of their employees within 30 days from the date of the end of the relevant month.

Contrary to that it is a violation of the law which is regarded as a criminal offence. He further said some employers for their own reasons had failed to fulfil their responsibility, something which has hindered their daily activities, especially when it comes to paying pension.

Azania Post

Updated: 15.11.2017 01:30
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