Labour • Created September 16, 2013 05:00

Compensation Scheme: FG to review workers contribution

This was disclosed in Abuja by the Managing Director of the Nigeria Social Insurance Trust Fund (NSITF) Munir Abubakar at the Nigeria Employers Consultative Association (NECA) and NSITF Safe Workplace Intervention Project workshop.Abubakar said the review is necessary due to varying levels of exposure to work place related injuries and a compliance with the Act […]

Compensation Scheme: FG to review workers contribution
Compensation Scheme: FG to review workers contribution

This was disclosed in Abuja by the Managing Director of the Nigeria Social Insurance Trust Fund (NSITF) Munir Abubakar at the Nigeria Employers Consultative Association (NECA) and NSITF Safe Workplace Intervention Project workshop.
Abubakar said the review is necessary due to varying levels of exposure to work place related injuries and a compliance with the Act setting up the scheme.
He said: “The law establishing the Employees Compensation Scheme has a provision for revision of the contribution rate two years after take-off. The rate of contribution is one percent for every employer without taking into consideration the peculiarities of sectors. At the initial stage, the law was couched to have the rate pegged at 1.5% but government reverted it to one percent in order to stabilize the scheme.
“Now, the one percent is supposed to be reviewed after two years. But because it is a technical issue that cannot be determined in haphazard manner, we have invited technical people as well as Nigeria Employers Consultative Association (NECA), International Labour Organization (ILO) to review this.”
He said that susceptibility to occupational accidents is not the same in all the sectors of the economy, which necessitated for the rate to be determined to a large extent, by susceptibility to accidents, stressing that sectors that are less exposed to accidents will have their rate reduced while those that are more exposed to accidents would have to pay a little more.
He explained that every worker in the country that sustains any level of injury is expected to benefit from the scheme whether his or her employer is contributing to the scheme.

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