Nigeria Social Insurance Trust Fund (NSITF) is a body of the government that ensures and cater for employee’s welfare in the event of work-related accidents and injuries. This Employees Compensation Scheme ensures that all employers of labor adhere to its objectives. It is the creation of the EMPLOYEE COMPENSATION ACT, 2010 ACT 73 OF 1993.
Over the past fifty years, NSITF has evolved from a Provident Fund Scheme to a Social Insurance Scheme and, currently the Employees’ Compensation Scheme. The Employees Compensation Act was passed into Law in December 2010 by the assent of President Goodluck E. Jonathan, GCFR, to give statutory backing to the mandate given by section 71(2) of the Pension Reform Act (PRA) to NSITF for the provision of Social Security Insurance Services by operating the ECS. The transition between the NSITF Scheme and the commencement of the Employees Compensation Scheme in 2011 was a period that was devoted to mainly strategizing and ensuring that the Employees Compensation Scheme became a reality.
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The scheme ensures that all employers of labor comply with the Federal Government Initiative to protect and cater for their employees in the event of work-related accidents and injuries by making sure that all employers are duly registered with the fund and are up to date with their contribution and they provide safe working environments always. The funding of the scheme is based on 1% of payroll of employers remitted to the Fund.
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Below are the objectives of the fund;
- To provide an open and fair system of guaranteed and adequate compensation for all employees or their dependents for any death, injury, disease or disability arising out of or in course of employment;
- Provide rehabilitation to employees with work-related disabilities as much as possible.
- Establish and maintain a solvent compensation fund managed in the interest of employees and employers
- Provide for fair and adequate assessments for employers
- Provide an appeal procedure that is simple, fair and accessible, with minimal delays and
- To combine efforts and resources of relevant stakeholders for the prevention of workplace disabilities, including the enforcement of occupational safety and health standard.
What is unique about ECS as a Social Insurance Scheme? Most Social Insurance Schemes are funded through tripartite (government + employer + employees) or bipartite (employers + employees) contributions, but this Scheme (ECS) is to be funded through only employers’ contributions as purely social responsibility. Government is only contributing as an employer of labor, while no contribution is expected from the employees.
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How can one apply for the ECS certificate?
The employer will go to any NSITF office in the State he is doing business with the following documents;
- Company certificate
- The application form from CAC
- The Memart
- Staff ID
The Company will be accessed based on the salary of the employees, the number of employees and the number of years the company have not made contribution (in the case of an old company) but a newly registered company will only be accessed on salary and number of the employees.
Once the assessment is made, the employer will be told how much to pay. The employer is expected to pay the total cost assessed and a registration fee of Twenty Thousand Naira (#20,000). Once the payment is made the following documents will be given to the employer to fill out
- ECS registration of employer form
- Employer’s schedule of payment
- Informal Sector individual Enrollment form
Once the details are filled in, the employer will submit the same with copies of Company certificate, Memart, staff ID etc. Upon verification of the details a receipt of payment will be issued to the employer. The payment receipt can be used for any application like TCC, DPR etc. If the employer desire the ECS certificate, he will pay the sum of Thirty Thousand Naira (#30,000) for the hard copy of the ECS certificate. It takes about 2 months for the ECS certificate to be ready.
Note that ECS contribution is made yearly and the certificate is renewable on a yearly basis.
For further question or enquiry
Email: info@verazadvocates.com.ng
Call/WhatsApp: +234 8116486356
