NSSA Registration and NSSA Clearance certificates

What is NSSA?

In terms of the National Social Security Act [Chapter 17:04], NSSA contributions are compulsory and all employers must register within 30 days of becoming an employer, by completing employer registration form P2 and ensure that employees complete employee registration form P3.

Failure to comply with the provisions of the Act including failure to register is an offense and offenders will be prosecuted in terms of Section 48(1) and 48(5) where the penalties include a jail sentence.

NSSA pensions and other benefits

For NSSA pensions and other benefits, the employer and the employer both contribute 4.5% of the total earnings. This means that the total paid is 9% of the total earnings of the employee.

what is a NSSA Clearance Certificate?

A NSSA Clearance Certificate is a certificate issued by the National Social Security Authority [NSSA] to registered employers liable for NSSA contributions, under any of the Acts administered by the National Social Security Authority. The certificate is issued upon request from employers whose contribution accounts are up-to-date or has made alternative debt settlement arrangement with NSSA.

What are the benefits of NSSA Clearance Certificate?

• NSSA Clearance Certificate is required when bidding for tenders.
• It acts as an assurance that, the trading partner’s employees are adequately covered by social security schemes as enshrined under Section 12 of the Accident Prevention & Workers’ Compensation Scheme SI 68 of 1990.
• A NSSA Clearance Certificate is a pre-requisite when applying for licences issued by local authorities.
• Business counterparts have confidence in doing business with companies who are compliant to statutory obligations

What is required to obtain a NSSA Clearance Certificate?

• The Employer’s account must be up-to-date in terms of contributions & premiums.
• Employers with outstanding legacy debt, must make alternative debt settlement arrangement, approved by NSSA.
• The Employer must furnish all statutory returns particularly P4 return or make satisfactory arrangements with NSSA for the furnishing of such returns.