In today’s world, many employers take advantage of employees through poor working conditions, health benefits, and no security. You do not have to work under harsh conditions like in a factory for an employer to take advantage of you.
Standing up is difficult for many, and this is the reason the Nigeria Social Insurance Trust Fund (NSITF) was established.
NSITF was established to guard the health and financial well-being of Nigerian workers. The Nigeria Social Insurance Trust Fund (NSITF) stands as a key agency in the nation’s labor market. It plays a major role in commitment to worker’s welfare, offering a safety net against the uncertainties of work-related accidents.
The Federal Government of Nigeria established this trust fund to cater for employees’ work-related accidents. The Nigeria Social Insurance Trust Fund monitors and mandates all employers to comply with this initiative. It covers all work-related accidents and injuries to employees.
Through its comprehensive coverage, the NSITF not only ensures employees are
protected but also promotes a culture of safety and responsibility among employers
across various sectors in Nigeria.
What is the Nigeria Social Insurance Trust Fund?
The Nigeria Social Insurance Trust Fund (NSITF) is a government agency established in Nigeria to render effective social security and insurance for Nigerian workers against work-related injuries and accidents.
They also look into different illnesses, ensuring compensation and access to medical care.
Duties and Roles of The NSITF
The Nigeria Social Insurance Trust Fund’s (NSITF) duties and roles are:
- Coordinating and overseeing the Nigerian Employees’ Compensation Scheme (ECS) for work-related injuries or accidents.
- Rendering financial and medical help to covered employees.
- Promoting and enhancing workplace safety and health awareness, and
- Following up and facilitating rehabilitation and return to work for all affected employees.
Benefits of The NSITF
The benefits of the NSITF are:
- Ensuring financial compensation for work-related accidents
- Provision of access to medical and rehabilitation services for affected employees.
- Robust coverage for occupational disease hazards.
- Help and support for dependents in case of death, and
- Promotion of safer work environments for all covered employees through risk management and compliance incentives.
How the NSITF Works
The NSITF mode of operation is by collecting contributions or fees from employers based on a percentage of employees’ monthly payroll. These contributions collected fund the Employees’ Compensation Scheme (ECS), which provides the benefits.
So, employers are required to register with the NSITF agency and make periodic contributions to ensure their employees are covered.
The fees (contributions) are determined by the employees’ salaries and the level of risk associated with their jobs, making sure the fund has the resources to offer compensation and support services when needed.
Eligibility Requirements For NSITF
The eligibility requirements for NSITF benefits are:
- An employee should be formally employed by organizations registered with the NSITF
- An employee must be contributing to the Employees’ Compensation Scheme (ECS).
- Work in the public and private sector
- The fees must be activated upon employment with a contributing employer, ensuring protection against work-related accidents.
Is NSITF Compulsory in Nigeria?
Participation in the NSITF and contributing to the Employees’ Compensation Scheme (ECS) is recommended for all employers in the private sector in Nigeria. But compulsory for public sector employers because it ensures protection for all employees against work-related injuries.
What schemes are under the Nigeria Social Insurance Trust Fund?
Services provided by the Nigeria Social Insurance Trust Fund are:
1. The National Provident Fund (NPF):
Established in 1961 by an act of parliament, this scheme aims at providing poverty alleviation measures in the country. In its early years, it targeted employees in the private sector, to protect them from financial difficulties in case of causality or cessation of employment. However, it currently covers both private and public employees.
How does it work?
All employees are mandated to make a monthly contribution of 6% of their basic salary. In the event of demise, the accumulated sum along with accrued interest is paid to the beneficiary.
2. Contributory Pension Scheme 1993:
All businesses with over 5 employees are required to make monthly contributions as a member of NSITF. This is to provide the following benefits:
- Retirement pension benefit.
- Survivors benefit.
- Retirement grant.
- Death grant.
- Invalidity benefit.
- the board may approve occasionally · Invalidity grant and other benefits.
How does it work?
They fund it through contributions of registered members of the scheme.
Each member enjoys pension and grants far beyond their contributions after retirement at the age of 55 or 60. In the event of death, they would pay the benefits to survivors.
3. Pension Reform Act (PRA) 2004:
This reformed act saw NSITF hand over its pension business to the Trust Fund Pension Plc. They redefined the funds’ mandate to the “provision of social security insurance services other than pension”.
4. Employees Compensation Act (2010):
They passed this act into law in 2010 to give statutory backing to NSITF. It mandates the provision of social security insurance services.
How To Get an NSITF Certificate
To get an NSITF certificate:
- Employers must register with the Nigeria Social Insurance Trust Fund
- They must have submitted the required documentation including employee
details - Make all important contributions to the Employees’ Compensation Scheme
(ECS).
Employer Schedule Payment Form For NSITF
The Employer Schedule Payment Form for NSITF is a document that all employers fill out to input their monthly contributions to the Employees’ Compensation Scheme (ECS).
On the form they list all employees and their earnings and submit it alongside the payment, ensuring accurate and timely contributions to the fund, compliance, and facilitating proper record-keeping.
How To Pay For NSITF
The employers make payments through designated banks or online payment platforms specified by the NSITF.
They ascertain the monthly contribution amount based on their employees’ total payroll and send it alongside a completed Employer Schedule Payment Form.
Official communication lines of the Nigeria Social Insurance Trust Fund
You can reach out to NSITF through any of the following:
E-mail: info@nsitf.gov.ng
corporateaffairs@nsitf.gov.ng
Phone Number: 09-2918900
Conclusion
NSITF was established to cater to your social needs as an employee. Under this scheme, you are financially secure against all unfortunate incidences in and outside your workplace.
Visit their official website at www.nsitf.gov.org or through the aforementioned contact details, for more information.
Frequently Asked Questions
How long does it take to get an NSITF certificate?
The processing time for an NSITF certificate can vary for each individual as it depends on factors like the date of application, date of payment, and submission of all required documents. It takes about 2 to 4 weeks to process.
How much is NSITF’s contribution in Nigeria?
Currently, the NSITF contribution rate in Nigeria is 1% of the total monthly payroll of the employees, paid by the employer to cover the Employees’ Compensation Scheme (ECS). It might in the future but this is the percentage for now.
Where does the Nigeria Social Insurance Trust Fund satisfy claims from?
They fund NSITF through the cooperative efforts of the employer and employee. To be a beneficiary, contribute a certain percentage of your monthly salary as mandated by the law.