The one percent annual contribution for the Employees Compensation Scheme (ECS) of the Nigeria Social Insurance Trust Fund (NSITF) payable by Federal Government ministries and agencies will henceforth be deducted at source by the Ministry of Finance.
An extraordinary session of the Federal Executive Council (FEC) chaired by Vice-President Yemi Osinbajo on Monday, gave the approval for the mandatory deductions to have retroactive implementation with effect from January 2023.
The ECS being implemented by the NSITF stems from the Employees Compensation Act (ECA) of 2010, which mandates public and private sector employers to remit equivalent of one percent of their staff emoluments to cover compensation by NSITF for workers’ injuries, ailments or deaths arising official duties or sustained while at work.
Owing to relentless failure to make the contributions, especially by government agencies, the Minister of Labour and Employment Chris Ngige, brought forward the proposal to the FEC to allow the Ministry of Finance to effect the deductions from source and remit to NSITF.
Thee proposal was approved by the FEC, with Ngige describing the development as very good for the workers many of whose employers have neglected their timely welfare.
With the approval, NSITF contributions by employers becomes the third mandatory contributions lawfully demanded by government for workers’ welfare. Then other two are for pensions and health insurance.
