By BarefootLawyers.
Nassif worked for a company for twelve (12) years. During that time, he accumulated about 45 million from his NSSF savings. His plan was to work for four more years and then get his money from NSSF, but he lost his job and started doing ‘small, small’ work where he could get it. Then he realised that he was making more money than before, but there was no automatic saving like before. What must he do to keep saving, and is he even allowed to save with NSSF when he is not technically an employee?
WHAT DOES THE LAW SAY?
By law, every employer (boss) must deduct and save a certain amount of money for their employee (worker) with NSSF. This means that an employer must deduct 5% from the employee and top up with 10% of his/her own, then save that in the employee’s account with NSSF.
However, when you do not work for anyone but are a businessperson or consultant, the law does not require you to save part of what you make with NSSF. Instead, it gives you a choice. You can do your own savings or save what you want with NSSF. (This is called Voluntary contribution).
If you choose to make your own contribution, this makes you a member of NSSF, which means that you cannot just go and demand your money. Like all the other members, you can get 20% of your NSSF benefits when you are 45 years, and you have saved for at least ten years (this is called midterm access). If you are 40 years old and have a disability, you have saved for at least ten years with NSSF you can also get 50% of your savings.
So, gig workers are also free to save with NSSF.
📷: Unsplash
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