A coalition of national employees’ unions in South Sudan has called on the government to suspend the implementation of the National Social Insurance Fund (NSIF) Act 2023, arguing that the scheme is being rolled out before the necessary legal, institutional, and governance structures are in place.
In a joint statement issued on Wednesday, representatives of workers’ unions from the oil sector, non-governmental organizations, diplomatic missions, international organizations, and other private sector entities said they support the principle of social insurance but oppose what they described as the current approach to implementing the law.
The unions include the Dar Petroleum Operating Company (DPOC) National Staff Union, the Greater Pioneer Operating Company (GPOC) South Sudan Workers’ Trade Union of Petroleum and Mining, the Sudd Petroleum Operating Company (SPOC) Cooperative and Society, and the National Employees Union of South Sudan (NEUSS).
The employees said the National Social Insurance Fund is meant to protect workers against social and economic risks and should be established as a credible national social protection institution.
However, they argued that the compulsory contribution scheme can only succeed if it is founded on legality, transparency, institutional independence, professional governance, and public confidence.
According to the statement, the unions’ concerns are not with the objectives of the NSIF Act itself but with “the manner in which it is presently being operationalized.”
The employees emphasized that social insurance contributions are not taxes or government revenue but compulsory savings deducted from workers’ salaries and matched by employers for the exclusive benefit of contributors and their dependents.
The unions said the Ministry of Labour’s Public Circular No. 5/2026 directed employers to begin remitting contributions before completing key institutional requirements.
These, they said, include establishing a legally constituted Board of Trustees, appointing executive management through due process, developing operational regulations and manuals, introducing digital systems, strengthening financial controls, registering employers and employees, and conducting nationwide public awareness campaigns.
They described the sequence as “putting the cart before the horse.”
The employees also questioned the governance of the fund, alleging that appointments to the Board of Trustees and executive management did not comply with provisions of the NSIF Act 2023.
They further expressed concern over what they described as potential conflicts of interest, saying the independence of the fund could be undermined if senior officials from the Ministry of Labour simultaneously exercise oversight over the institution.
The statement also called for greater representation of contributors on the Board of Trustees, arguing that employees and employers, who finance the scheme, should have a meaningful voice in decisions affecting their savings.
The unions further raised concerns over the financial sustainability of the fund, saying they were unaware of any publicly available actuarial valuation or financial assessment supporting the current contribution rates and benefit structure.
They also sought clarification on how the scheme would apply to workers employed under short-term, project-based, or renewable contracts, particularly in NGOs, diplomatic missions, and the private sector where employment is often dependent on donor funding.
According to the employees, uncertainty remains over qualifying contribution periods, portability of benefits, refunds, and access to entitlements when employment contracts end before workers meet the required contribution threshold.
The unions urged the government to suspend compulsory implementation of the scheme until all legal and institutional requirements have been fulfilled.
Among their recommendations, they called for the full and lawful constitution of the Board of Trustees and executive management, transparent appointment processes, nationwide stakeholder consultations, comprehensive public awareness campaigns, and the commissioning of an independent actuarial and labour market assessment to determine appropriate contribution rates and benefit structures.
They said any review of the scheme should involve employers, employees, trade unions, civil society, professional bodies, and development partners before compulsory contributions begin.
The employees maintained that they remain committed to constructive dialogue with the government, saying a credible and sustainable social insurance system can only be built through transparency, inclusivity, and public trust.
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