Social Security Schemes in Tanzania: NSSF Contribution and Benefits 

The National Social Security Fund (NSSF) is a state scheme established under the NSSF Act [Cap. 50 R.E 2018] to provide social security services to members from private and informal sectors in Tanzania. Its function entails members' registration, contribution collection, investing collected contributions, and payment of benefits to members. 

Is NSSF Compulsory in Tanzania?

NSSF is compulsory for every employer and their employee(s) in the private sector. For the employer, registration with NSSF should be done as soon as the company is set up. On the other hand, any person from age 18 up to 60 years old and is an employee is eligible for registration.

Those in any of these categories are eligible for registration with the NSSF scheme:

1. The private sector includes companies, non-governmental organizations (NGOs), and religious organizations.  
2. Employees of international organizations operating in Mainland Tanzania- it refers to foreigners employed in Mainland Tanzania. 
3. Self-employed individuals 
4. Any other category specified by the Minister 

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How Can I Get NSSF Number in Tanzania?

First, one has to register as a member to acquire an NSSF number in Tanzania. All eligible persons shall be registered to the Fund using the National Identification Numbers (NIN). However, new members who shall not have obtained NIN at the time of the registration are registered under the “Registration without NIN Portal.” 

For employers, registration starts with submitting a registration request and filling out Form NNSF/R1A is available at any NSSF office throughout Tanzania. The next step is to participate in a photo-capturing process and wait for your social security number to be processed. 

For employees, they follow a similar process as outlined above. However, those whose employers are registered are required to fill out Form NSSF/R3A.

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How Much is NSSF's Contribution in Tanzania? 

Every registered employer is required to remit to NSSF 20% of the employee’s monthly salary. The 20% is a joint contribution whereby the employee should contribute 10% of their monthly salary and the employer the other 10%. However, employers may opt to contribute at a higher rate.

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How can I Check my NSSF Balance in Tanzania?

You can visit the nearby NSSF office in Tanzania and request to know your balance. Alternatively, you can check your NSSF balance via mobile SMS. Here is how to check your NSSF balance via phone:

1. Start by sending a message with the word “REGISTER,” followed by your NSSF membership number to 15747. It’s recommended you use Tigo or Vodacom networks for this particular process. 
2. You should then receive a message on your phone confirming your NSSF mobile registration. 
3. Then write a message with the word “SALIO” followed by your NSSF membership number and send it to 15747
4. Finally, you should see your NSSF balance. 

Note: To access NSSF Mobile services, you’ll need phone credit since you’ll be charged about TZS. 150 each time you check your NSSF balance. 

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What are the NSSF Benefits offered in Tanzania?

NSSF Fund provides 7 benefits to its members, categorized as long-term and short-term benefits. Long-term benefits include: 

1. Retirement pension (Old-age pension)

Its main objective is to guarantee income security to the elderly members by providing periodic payments upon attaining pensionable age. The compulsory pensionable age is 60, while the voluntary age is 55 to 59.  

What makes a member eligible for a retirement pension?

• Attained the age of 55 or above
• At least 180 months of contributions

Benefit payable: 

• The initial Lump Sum payment (Commuted pension) is paid immediately before starting the pension. It’s equal to 25% of the calculated annual pension times 12.5
• Old age special lump sum is paid to non-qualifying members. It’s the total contribution plus interest. 
• Maximum pension equals 72.5% of the Annual Pensionable Emoluments 
• The minimum pension equals 40% of the lowest Statutory Minimum Wage.

2. Invalidity pension 

This pension guarantee income security to a member who has permanently lost their earning capacity due to an accident or illness. 

Who qualifies for an invalidity pension?

This pension is payable to an insured person who:

• Is under pensionable age 
• Is suffering from permanent invalidity 
• Has made at least 180 contributions or at least 36 monthly contributions immediately before the preceding date of invalidity commenced. 

Benefit payable:

• The benefits payable are determined similarly to retirement pension (as outlined above) benefits. However, the minimum required credit here is 36 months. 
• Qualifying members shall be entitled to both Lump Sum and monthly pension 

3. Survivors’ pension 

This pension is a benefit paid to dependents of a deceased NSSF member. It’s aimed to compensate for the loss of economic support previously provided by the deceased. In this case, dependents refer to the spouse, children (under 18), or parents (where there is no child or spouse) of the deceased. 

What are the qualifying conditions for the survivors’ pension?

It’s payable to the dependents if, at the time of death, the deceased:

• Had they attained pensionable age, they would have been entitled to retirement pension or invalidity pension (had they filed such a claim). 

Benefit payable:

• A survivor’s pension is determined the same as a retirement pension.
• Pension payable shall be distributed as follows: 40% to the spouse and 60% to the children. In situations where no spouse(s) or children, the parents take 100%.
• Suppose at the time of death the deceased qualifies for a retirement or invalidity pension; they’re entitled to lump sum payment and monthly pension. 
• Suppose the deceased died while receiving retirement or an invalidity pension; the survivors shall be entitled to a death grant (the grant should equal monthly pension time 36). 

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Note: short-term benefits entail funeral grants, maternity, unemployment, and health insurance benefits. 

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References 

1. https://gerpatsolutions.co.tz/nssf-wcf-registration-tanzania/
2. https://www.usemultiplier.com/tanzania/employee-benefits-and-compensation#:~:text=Under%20the%20National%20Social%20Security,avail%20the%20regular%20pension%20amount.
3. https://www.nssf.go.tz/pages/overview
4. https://taxsummaries.pwc.com/tanzania/individual/other-taxes#:~:text=There%20is%20a%20state%20social,of%20this%20from%20the%20employee.
5. https://lenvica.com/national-social-security-fund-nssf-in-tanzania/

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