MTN Uganda, NSSF Partner On Social Security Payments
By Serestino Tusingwire
Members of the National Social Security Fund (NSSF) can now be able to have their social security contributions paid using Mobile Money after the two companies announcing the partnership.
According to the Managing Director Richard Byarugaba, the partnership enables NSSF members on the NSSF Voluntary Membership Plan as well as small and medium sized entities to conveniently make payments using MTN Mobile Money.
NSSF on the other hand will be able to receive contributions promptly, thus enhancing its contributions process efficiency.
“MTN Mobile Money benefits both our members and the Fund. In a survey we conducted last year on voluntary contributions, 67% of respondents cited mobile money as a preferred transaction method when remitting their social security contributions,” Byarugaba said.
He added; “in addition to guaranteeing convenience for our voluntary contributors, it will ease reconciliation with an option of automating the upload of contributions onto members’ accounts. It will greatly improve data accuracy, as well as instant confirmation of received contributions through SMS to the contributors”.
MTN Mobile Money can be used by both voluntary contributors under the NSSF Voluntary Contributions Plan as well as established entities, especially those that remit less than 4 million shillings in social security contributions per month.
MTN CEO, Wim Vanhelleputte, welcomed the partnership, noting that it will foster financial inclusion through easing the payments process of pensions that are critical to avoiding poverty in old age.
“In the last eight years, MTN Mobile Money has had significant impact in the transformation of people’s lives. Now we are further enabling people to pay for their NSSF Contributions using MTN Mobile Money. This will enable a significant part of our customers pay their pension and ensure they don’t retire into poverty,” Wim said.
About 9 million Ugandans use MTN Mobile Money as a means to transact, while a big number of Ugandans do not have any form of social security in old age.
In that light, NSSF recently launched the Voluntary Contributions Plan to provide an opportunity to workers not covered by the mandatory provisions of the NSSF Act, as well as those in gainful self-employment that were previously contributing to the Fund to voluntarily save.