The Social Security Fund was created to provide a variety of benefits for citizens who have reached retirement age, have long term illnesses, disabilities, are unemployed, or who are in need of assistance.

Contribution of Monthly Emolution

In order to provide this assistance, the fund levies contributions on employees’ monthly emoluments, with both employers and employees liable to pay contributions. The employers and employees contributions are provided in the Basic Cost section.

It is the responsibility of the employer to remit both the employee and employer contributions on a monthly basis.

Distribution of Contributions

The contributions received by the Social Security Fund are distributed as follows:

• Payment of Benefits and Administration

• Consolidated Fund

• Authorized payments such as the Youth Training Scheme, Unemployment Relief Scheme fund and the Specialized Treatment Fund

Exemption from Contribution

The following persons or classes of persons may be exempt from contribution liability:

• A person working on an approved project in terms of section 5 of the Unemployment Relief Scheme Act, 1994

• Musicians licensed under the Licensing Act 1986 as a performing artist and who have had withholding tax deductions from their incomes

Any person coming within these categories should make an application to the Director Social Security Fund for an exemption from contribution liability.

The Agriculture and Fisheries Incentives Act and Tourism Incentive Act also provide certain exemptions from social security contributions.

Registration of Employer

All employers must register with the Social Security Fund within 7 days of commencement of business. Employers may obtain a registration form by either requesting a form to be forwarded to their address or they may register in person at the Social Security offices.

Contact Details

Social Security Fund Oceangate House Victoria, Mahe Tel: +248 224581 Fax: +248 224620 Email: dnts@socialsecurity.sc

Once an employer is registered, an employer number is allocated, which should be used as a reference in all correspondence or other dealings with the Fund.

Records Required by Regulation

Social security regulations specify that the following details must be maintained by employers for each employee:

• National Identity Card Number

• Name

• Date of Birth

• Date of commencement of employment

• Date of cessation of employment

• Employees occupation

• Date and amount of each emolument or benefit

• Value of employee’s social security contribution

• Value of employer’s social security contribution

Sufficient written information must be kept detailing employee benefits supplied by the employer.
This information may include a contractt of employment, log books, leases and any other relevant document.

Offences and Penalties

It is an offence under the legislation for an employer to:

• Provide the Fund with false information verbally or in written

• Not to disclose all the necessary information to the Fund

• Fail to register as required

• Fail to supply any form as prescribed

• Fail to comply with any request of the Fund

• Fail to attend the office of the Fund when required

• Hinder or obstruct an officer of the Fund in the performance of his/her duties

A person found guilty of any false offenses is liable to a fine of SR10,000 and to imprisonment for 6 months. A prosecution for an offence under the legislation can be commenced at any time.