New NSSF subscriptions

Social Security sets procedure to calculate fees based on new minimum wage

The National Social Security Fund (NSSF) has set up the procedure by which the wage increase decree, effective from 1 February 2012, will be applied to NSSF subscriptions.
The NSSF said that starting 1 February, the new minimum salary ($450) and the new minimum daily wage ($20) will be reflected in monthly NSSF payments. The Social Security law states that employers declare the income of their employees, who are subject to the Social Security Act, so as to calculate the NSSF subscription, which amounts to 23.5 percent of the employee’s income. The employer covers 21.5 percent of the subscription, while the remaining two percent are subtracted from the employee’s income.
The NSSF specified that besides the minimum wage rate, the salary increase formula adopted in the wage raise decree shall be applied to the wages of all employees and workers.
The NSSF listed the new NSSF contributions for a few special groups of beneficiaries as follows:
- Taxi driver (who doesn’t own the car): $211.5 per month
- Taxi driver (who owns the car): $87.75 per month
- Sellers of newspapers and magazines: $211.5 per month
- Mokhtars (subscribed to the Maternity and Sickness Fund): $16 per month
- College students (subscribed to the Maternity and Sickness Fund): $135 per year, starting academic year 2012-2013
The NSSF also set the compensation for funeral expenses at $675.