Unemployment insurance fund, payslips to be trimmed further
Former employees will be entitled to unemployment benefits if a bill proposed by Ikolomani MP Bernard Shenali in the National Assembly is passed.
The Unemployment Insurance BillBill 2022 proposes the establishment of an Unemployment Insurance Fund into which employers and employees will pay contributions that will help the employee in the event of unemployment.
The Bill refers to benchmarking with South Africa, where employees contribute 1.0% of salary, matched by 1.0% from the employer, to a similar fund.
Appearing before the Budget and Appropriations Committee on Thursday, he explained that the objective of the Bill is to provide benefits to employees who become unemployed or their beneficiaries to cushion them against the adverse socio-economic effects of unemployment.
“The various sources of money include contributions from both employers and employees, allocations by Parliament from the national budget, funds provided to the fund by a county government, as well as donations and grants,” the MP said.
The bill proposes the establishment of the Unemployment Insurance Authority as a body corporate with a board consisting of a chairperson and nine other members.
The functions of the Authority will include administering the FundFund, advising the Cabinet Secretary on unemployment insurance policy and legislation, and advising both levels of government on policy matters relating to unemployment and unemployment insurance fund.
The Bill provides for the exclusion of certain cadres of public servants as may be prescribed by regulations made by the Cabinet Secretary, taking into account the advice of the Salaries and Remuneration Commission (SRC)(SRC) and the Cabinet Secretaries responsible for financial matters.
Unemployment insurance fund, payslips to be trimmed further
