WINDHOEK – The Social Security Commission (SSC) yesterday announced an increase in the salary range that defines employees requiring to contribute to the Employee’s Compensation Fund (ECF) from N$76 000 to N$81 300 per annum.
This adjustment effectively increases the number of people covered under the ECF.
The SSC’s manager for corporate communications, Rino Muranda, said the number of people covered under the ECF had been shrinking as people received wage increases which put them above the threshold for mandatory coverage for SSC benefits.
The increase effective from March 2013, means that all employees who earn up to N$81 300 per annum (or N$6 775 per month) will now be included in the mandatory cover for work-related injuries and or accidents under section 3 of the Employees Compensation Act.
The coverage includes the payment of medical expenses in respect of work-related injuries/diseases, payment of transport costs to medical facilities, temporary and permanent disability, compensation for occupational diseases or injuries, pension to dependants (if the injury was fatal) as well as burial expenses.
All employers have therefore been advised to include all their employees who earn up to N$81 300 per annum in the wage return which is due to be submitted in March 2014.
“Those employers who wish to enter a special arrangement with the SSC to cover employees whose earnings are above N$81 300 per annum may still do so by completing the application form also known as Form EAs 10, which is obtainable from all the commission’s offices,” explained Castro Tjizoo, the SSC’s communications officer.
The SSC yesterday also announced that with effect from March 01, 2013, the maximum ceiling for ECF assessments has also been increased from N$66 000 to N$70 600 per annum.
“This means that for the purpose of completion of wage returns for employees earning up to a maximum of N$81 300 per annum, employers will now declare such wages up to a maximum of N$70 600 per annum, or N$5 883 per month as opposed to N$5 500 previously,” said Tjizoo.
The SSC yesterday also informed all employers in the country that it will no longer accept late registration claims in respect of the Maternity and Sick Leave and Death Fund (MSD).
The commission reiterated it is the duty of the employer to register their employees within the prescribed period, which is 30 days from the date on which he or she became an employee/employer.
“It is a criminal offenve not to comply with this provision of the Act and criminal charges may be laid against any person who fails to comply with any provisions of the Act. Employers are therefore requested to comply with the provisions of the Act by registering their employees within the prescribed 30 days of commencement of their employment as late MSD claims due to non-registration of employees will no longer be accepted by SSC as from March 1, 2014,” cautioned Tjizoo.
As of yesterday the SSC will pay all benefits directly into the claimant’s bank account and in this regard all members, beneficiaries and service providers are urged to provide their banking details when submitting claims.
Furthermore, the SSC advised that effective from March 1 2013 it has discontinued the issuance of monthly invoices or pre-printed Form 10’s in respect of MSD. The commission emphasised that it is obligatory for every employer to deduct monthly contributions from an employee’s basic wages and pay such contributions, together with the contribution payable by the employer, over to the commission within the prescribed period which is 30 days after month end.
By Staff Reporter