The National Employees Union of South Sudan (NEUSS) has advised employers to halt registration and remittance of social insurance contributions to the National Social Insurance Fund (NSIF) pending a court determination or mutually agreed resolution. This move comes as the union questions the legality, sequencing, institutional preparedness, and implementation of the NSIF Act and Labour Ministry Circular No. 05/2026. NEUSS supports the principle of social insurance and workers' social security rights but seeks clarification on several aspects of the implementation.
NEUSS has raised concerns over the deduction of social insurance contributions from employees without their agreement. Citing Section 51 of the Labour Act, 2017, the union argues that the law requires an employee to agree to contribute to a pension or similar scheme before such deductions can be made. As of now, no employee has agreed to contribute towards the NSIF in its current form. The union urges employers to hold off on registering and making employee deductions until there is a clear statutory basis for the deductions.
The union has repeatedly raised concerns with the Labour Ministry and relevant authorities over Circular No. 05/2026 and the implementation of the NSIF Act. These concerns include the legal and procedural basis of implementation, institutional preparedness, registration of contributors, contribution and remittance procedures, retrospective application, governance, and representation of contributors. Despite these engagements, none of the substantive concerns raised has been satisfactorily addressed or resolved.
NEUSS criticizes the selective, defective, and discriminatory implementation of the NSIF Act. The NSIF has singled out NGOs, diplomatic missions, and international organizations for immediate registration and remittance, while other sectors have not been subjected to the same drive. The union argues that workers require social insurance regardless of the sector in which they work. NEUSS rejects this selective implementation in the strongest possible terms.
The dispute comes as the National Social Insurance Fund moves ahead with the implementation of the Labour Ministry's Public Circular No. 05/2026. The NSIF announced that registration of covered employers and employees began on October 1, 2026, with a three-month grace period for registration and penalties applying after the grace period. Employers have been directed to remit contributions, including arrears withheld from employees dating back to April 24, 2026. The Labour Ministry has set October 30, 2026, as the deadline for employers to comply with the latest implementation requirements.
NEUSS is now urging employers to refrain from complying with the contested measures until the legal questions are resolved. The union wants employers to maintain the previous arrangement under Labour Ministry Circular No. 03/2010 while the dispute is being addressed. NEUSS calls upon all employers to exercise prudence, preserve the status quo, obtain appropriate legal advice, and await judicial and/or authoritative clarification.
The union has warned employers about possible consequences if they proceed with deductions and remittances while the matter remains before the court. Employers that implement the contested measures without employee agreement could face resistance from workers and their representatives, including litigation and industrial action. NEUSS warns that such action could disrupt operations and essential services and expose the employer to avoidable labour-relations risks.
Key points
- NEUSS advises employers to halt NSIF registration and remittances pending court decision.
- The union questions the legality of deducting social insurance contributions from employees without their agreement.
- NEUSS criticizes the selective implementation of the NSIF Act, arguing that workers require social insurance regardless of sector.
