All employers are statutorily required to contribute to the Fund. Contributions are part of employers’ cost and should not be deducted from salaries of employees. Contribution rates (tariffs) are determined periodically by the Fund depending on risk assessment of workplaces and other relevant factors.
In the financial year 2015/16, contribution rates for each employer are:
- 1.0% of employees’ earnings (wage bill) for each employer in the private sector.
- 0.5% of employees’ earnings (wage bill) for each employer in the public sector.
For the Fund’s purposes, monthly employees’ earnings (wage bill) include basic salaries plus all fixed allowances which are regularly paid along with basic salaries.
Public sector employers include employers in the central government, local government, parastatals, executive agencies and all government-related institutions. Private sector employers are all those which are not part of public sector employers.