NSIF Orders Mandatory Remittance of Social Insurance Contributions

JUBA— The National Social Insurance Fund (NSIF) has ordered employers to register workers and begin remitting mandatory social insurance contributions, setting Oct. 1 as the deadline for registration, despite an ongoing legal dispute over the scheme.

In an administrative Circular No. 1 of 2026 on Monday, the NSIF said the order implements Labour Ministry Public Circular No. 5 of 2026, which directs employers to remit contributions to the Fund.

“Upon completion of registrations, all registered contributors shall be required to remit the required contribution,” the circular states.

The administrative order takes effect on Sept. 30, the order stated.

Employers and employees will have a three-month grace period to complete registration, after which penalties for late registration will apply under the National Social Insurance Fund Act 2023.

The order covers private-sector workers, South Sudanese employees of United Nations agencies, diplomatic missions and non-governmental organisations.

Under the contribution structure announced by the Fund, employers will contribute 8% while employees contribute 17%, for a combined contribution of 25%.

The NSIF also ordered employers to remit arrears withheld from workers from April 24, 2026, when the Labour Ministry issued Public Circular No. 5.

Kue Ayuen Kou, the policy advisor of the fund, said employers that had not deducted contributions would be handled on a case-by-case basis.

The implementation has faced resistance from workers and unions, including employees in the petroleum sector who have challenged Public Circular No. 5 in court.

The oil workers filed a petition with the Court of Appeal earlier this month, asking the judiciary to examine the legality and application of the circular.

The oil workers say they support social protection but have raised legal and administrative concerns about the implementation of the scheme.

Mr. Ayuen said the NSIF was not opposed to workers seeking legal remedies, but said the Fund had not yet been formally served with the court documents.

“We have not been officially notified, neither have we been served,” he said.

The NSIF said it would continue implementing the administrative order until it receives an official legal notification requiring it to address the court action.

Ayuen said the Fund had spent months preparing regulations, policies and systems before moving to implement the contribution requirements.

He said the delay was intended to give the institution time to establish mechanisms that could increase public confidence in the management of workers’ money.

Ayuen said Fund is also developing a digital system that will allow contributors to monitor their individual accounts, including contributions and benefits.

“It will be like a bank account. You will know how much is in your account,” Pradhan said.

The NSIF said penalties for late registration, late payment or non-remittance would be imposed in accordance with the National Social Insurance Fund Act 2023 and applicable regulations.

Employers and workers have been directed to obtain registration and payment procedures from the Fund.