The National Social Security Fund (NSSF) of Tanzania was established by the Act of Parliament No. 28 of 1997 to replace the defunct National Provident Fund (NPF).
NSSF is a compulsory scheme providing a wider range of benefits which are based on internationally accepted standards.
NSSF covers the following categories of employers and employees:
- – Private Sector (companies, non-governmental organizations, embassies employing Tanzanians, international organizations and organized groups in the informal sector)
- – Government ministries and departments employing non-pensionable employees
- – Parastatal organizations
- – Self-employed or any other employed person not covered by any other scheme
- – Any other category as declared by the Minister of Labour
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.
Some of NSSF’s investment projects include:
- – The Kigamboni Bridge, which is a Joint Venture project between the Fund (60%) and Government (40%)
- – Real estate projects, including the Dege Eco Village, the Kiluvya Hills and Mtoni Kijichi