An evaluation of the social security coverage of the informal sector in Uganda

Abstract

The study focused on analyzing the current efforts by the National Social Security Fund in the promotion of social security coverage for the informal sector in Uganda. The objectives of the study were to: To find out reforms that have been undertaken to integrate the informal sector into the National Social Security Fund (NSSF; To identify challenges faced by NSSF in implementation of social security interventions for the informal sector; and make recommendations for social security interventions for the informal sector in Uganda. The scope of the study was limited to members of the informal sector in Kampala Central Business District currently saving with NSSF. In terms of time, the study was limited to the last ten years of NSSF’s existence between 2012 and 2021 during which government started debating on Pension Liberalization Bill which also included voluntary participation of the informal sector. The main purpose of the study was to identify strategies of improving social security saving for the informal sector in Uganda. The research adopted a narrative cross-sectional survey conducted using qualitative approach. The target population was members of the informal sector currently saving with NSSF. Subsequently, the sample size was eighteen members of the informal sector from Kampala Central Business District. The study employed a purposive sampling technique, with primary data collection using semi-structured interview guide and descriptive analysis of primary data was conducted and presented in the findings. Findings revealed that NSSF has introduced Voluntary Saving Scheme to cater for the informal sector. Voluntary contribution is still very low despite a remarkable success registered of by NSSF of more than 10,000 voluntary savers. The major challenge hindering expansion of voluntary contribution is the restrictions in the NSSF Act. The main suggestion to expand and improve social security for informal sector was amendment of the NSSF Act to allow for broader coverage.