Zanzibar — Zanzibar Social Security Fund (ZSSF) has introduced new benefits amid assurance that it has the financial muscles to foot the expenses.
ZSSF Head of Legal Services Ramadhan Juma Suleiman told editors here on Friday that the fund can pay the benefits for 25 years even if it ceases to take contributions, according to a recent actuarial valuation.
"ZSSF is financially strong... even if it stops taking members' contributions today, the fund can still afford to pay these benefits for the next 25 years," the fund's lawyer said, identifying the new products as unemployment benefit and employment injury benefit.
He said the fund has since June 2022 introduced the products through amendments of various laws No. 5 of 2022 and its regulations.
The benefits, which respond to the members demand, are part of ZSSF five-year strategic plan--2020/2021 to 2025/2026. "It's the obligation of ZSSF to support its members to meet their life needs during unemployment," the director told a half day session, which the fund had organised to introduce editors to the new products.
He said the products came into effect on October 10, 2022 after the minister of state, president's office, finance and planning had signed the regulations.
The unemployment benefit will be paid in one of the three methods--refund of all contributions for members with between 18 and 36 months; refund of all annual contributions with one percent interest for members with between 36 and 65 months; and payment of 20 per cent of the highest six-month salaries for members with over 65-month contributions.
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Members in the first category forfeit their membership to the fund upon receipt of the benefit, Mr Suleiman explained, adding: "Members can receive this benefit as many times as they get and lose jobs--but the minimum contributions for the second time is 24 months."
The criteria for the benefit include unemployment for at least six months; below 55-year age; and Tanzanian citizenship.
ZSSF member has to qualify for the benefit after losing employment due to any reason except voluntary resignation or dismissal over corruption and embezzlement charges.
The lawyer further explained that arrangements are underway for the employment injury benefit, noting that the fund will compensate all workers and ZSSF members in the public and private sectors. Under the new arrangement, employers will contribute one percent of their wage bill to ZSSF for the compensation.
Mr Suleiman said through the employment injury benefit, the fund will offer three packages--payment for permanent disability; payment for constant attendant care grant; and payment for the dependants of the deceased employee.
ZSSF Director of Social Security Services Khatib Iddi Khatibu said the fund is determined to improve services and benefits to its over 150,000 members.
