Failure by employers to contribute to the Social Security Commission (SSC) has resulted in employees not receiving benefits from the commission.
This happens in many cases when workers need it the most in situations such as retrenchments and maternity leave.
This emerged during a stakeholder compliance awareness breakfast in Windhoek.
The Chairperson of the Board, Markus Kampungu, said employers remain non-compliant either due to lack of awareness or misunderstanding of their obligations.
Kampungu pointed out that non-compliance not only affects the employee but also the employer, who incurs penalties.
The mandate of the Commission is to administer social protection services that provide financial cushioning in times of illness, maternity, death, retirement, injury, or disability.
“Allow me to share with you that the impact on affected employees is heartbreaking. It is hard to watch a mother with a newborn crying because she cannot afford to buy the basics for her baby. A sight we are too often confronted with at our service points. That is just an example, but significant for the results of non-compliance. This not only impacts the employee but also the employer, who incurs penalties due to non-compliance. To ensure we can effectively render these services, your active participation as an employer is paramount.”
The commission also announced an increase in contributions, as of March next year.
This will be the first increase since the inception of the Commission.
“As you know, we introduced or increased the ceiling for the benefits about two years ago, and it was from N$15,000 to N$18,000. When we increased that ceiling, we did not increase the contributions. Our objective at the end of the day is to make sure that when a lady goes on maternity leave, she goes with 100% of her salary. However, for us to do that, we have to also take into consideration the huge financial responsibility from companies,” said SSC Executive Officer Milka Mungunda.
The compliance awareness meeting is aimed at fostering dialogue, providing insights, and highlighting the importance of compliance.
Compliance with the commission is not only a legal requirement but a shared responsibility to ensure employees have a financial safety net in times of need.