NEUSS urges employers to halt NSIF registration and remittances pending court decision

Juba, October 7, 2026 — The National Employees Union of South Sudan, NEUSS, has advised employers to suspend registration and remittance of social insurance contributions to the National Social Insurance Fund pending a court determination or a mutually agreed resolution.

In an advisory dated October 5, 2026, the union called on NGOs, international organizations, diplomatic missions, companies and other employers covered by the National Social Insurance Fund Act, 2023, to refrain from taking what it describes as “irreversible” steps while the legality of the implementation remains under judicial consideration.

NEUSS says it supports the principle of social insurance and workers’ social security rights, but questions the legality, sequencing, institutional preparedness and implementation of the NSIF Act and Labour Ministry Circular No. 05/2026.

“Employers are urged to exercise maximum restraint before taking irreversible steps while the legality of the underlying implementation measures is under judicial consideration.”

The union says affected workers and their representatives have already taken the matter to court after attempts to resolve the concerns through dialogue with the Ministry of Labour and other relevant authorities failed to produce a satisfactory outcome.

The legal challenge seeks clarification on the legality and proper implementation of the social insurance framework.

NEUSS questions employee deductions

A major concern raised by the union is whether employers can deduct social insurance contributions from employees without their agreement.

NEUSS cites Section 51 of the Labour Act, 2017, which it says sets out the circumstances under which deductions can be made from an employee’s salary.

The union argues that the law requires an employee to agree to contribute to a pension or similar scheme before such deductions can be made.

“To date, no employee has agreed to contribute towards the NSIF in its current form,” the advisory states.

It consequently urges employers to “hold on from registering and making employee deductions” in connection with the NSIF implementation until there is a clear statutory basis for the deductions.

Union raises concerns over implementation

NEUSS says it has repeatedly raised concerns with the Labour Ministry and relevant authorities over Circular No. 05/2026 and the wider implementation of the NSIF Act.

According to the union, these concerns include the legal and procedural basis of implementation, institutional preparedness, registration of contributors, contribution and remittance procedures, retrospective application, governance and representation of contributors.

It also says there has not been sufficient consultation with affected workers and employers.

“Despite these repeated engagements and the Union’s continued preference for social dialogue and an amicable resolution, none of the substantive concerns raised has been satisfactorily addressed or resolved.”

The union argues that proceeding with the NSIF implementation while those issues remain unresolved creates further uncertainty for employers and workers.

Dispute over selective implementation

NEUSS has also criticized what it calls the “selective, defective and discriminatory implementation” of the NSIF Act.

The union says the NSIF has singled out NGOs, diplomatic missions and international organizations for immediate registration and remittance, while other sectors, including national companies and multinational corporations, have not been subjected to the same drive.

“NEUSS rejects this selective implementation in the strongest possible terms.”

The union argues that workers require social insurance regardless of the sector in which they work.

“Workers are workers regardless of sectors and not only NGOs, International Organisations and Diplomatic Missions employees need social insurance.”

October 30 deadline

The dispute comes as the National Social Insurance Fund moves ahead with implementation of the Labour Ministry’s Public Circular No. 05/2026.

The NSIF announced that registration of covered employers and employees began on October 1, 2026, following implementation of the Labour Ministry directive. The exercise covers private-sector employers and workers, as well as South Sudanese employees working for UN agencies, diplomatic missions and NGOs.

The Fund said contributors would have a three-month grace period for registration, with penalties applying after the grace period.

It also directed employers to remit contributions, including arrears withheld from employees dating back to April 24, 2026.

However, the Labour Ministry has subsequently set October 30, 2026 as the deadline for employers to comply with the latest implementation requirements.

NEUSS is now urging employers to refrain from complying with the contested measures until the legal questions are resolved.

NEUSS calls for earlier arrangement to remain

The union wants employers to maintain the previous arrangement under Labour Ministry Circular No. 03/2010 while the dispute is being addressed.

“The Union call upon all employers to exercise prudence, preserve the status quo under the Ministry of Labour Circular No. 3 2010, obtain appropriate legal advice from own legal counsel and await judicial and/or authoritative clarification.”

NEUSS says employers should avoid actions that could create competing liabilities or prejudice the rights of workers and employers.

Warning of possible industrial action

The union has also warned employers about possible consequences if they proceed with deductions and remittances while the matter remains before the court.

It says employers that implement the contested measures without employee agreement could face resistance from workers and their representatives.

“Any employer that proceeds to implement contested deductions, remittances or other measures despite the outstanding legal challenge and without agreement by the employees to contribute may face significant resistance from affected workers and their representative Union.”

According to NEUSS, such resistance could include litigation and industrial action.

“Such action could disrupt operations and essential services and expose the employer to avoidable labour-relations risks.”

The union further warns that employers could face reputational and ethical consequences by implementing measures whose legality is actively being challenged.

It is therefore calling on employers to exercise restraint, obtain independent legal advice and avoid actions that could escalate the dispute pending resolution through the courts or meaningful engagement between the parties.

The NSIF, meanwhile, maintains that its registration and remittance drive is based on the National Social Insurance Fund Act, 2023, and the Labour Ministry’s directive. The Fund has urged covered employers and employees to comply with the registration requirements.

The competing positions leave employers facing a critical October 30 deadline while the legality and implementation of the social insurance scheme remain under judicial consideration.