A broad coalition of workers across South Sudan’s oil industry, NGOs, diplomatic missions, and the private sector has officially demanded the suspension of the National Social Insurance Fund (NSIF) Act 2023. The dispute stems from the Ministry of Labour’s Public Circular No. 5/2026, which revoked a 2010 directive that previously allowed employers to manage social insurance contributions internally.
The new mandate requires all employers to immediately remit contributions to the NSIF; however, while unions support the concept of a national social security system, they argue the government is rushing implementation before establishing the necessary legal, operational, and financial frameworks required by the 2023 Act.
Union leaders from major oil companies and the National Employees Union of South Sudan have highlighted significant failures in the current rollout, specifically citing a lack of governance due to the absence of an independently constituted Board of Trustees. They have expressed concern regarding the Ministry of Labour’s unchecked influence and the lack of transparency in the fund’s management.
Furthermore, the unions point to major operational gaps, such as the absence of digital platforms, standardized registration procedures, and the failure to issue social insurance numbers to workers, which prevents the effective tracking of individual contributions. They also criticized the government for relying on social media for policy communication rather than official directives and for failing to provide an actuarial valuation to justify current contribution rates.
The coalition has also raised alarms regarding the vulnerability of employees on short-term or donor-funded contracts, warning that the lack of clear regulations puts these workers at significant risk of losing their contributions. Emphasizing that the success of the NSIF relies on the confidence of the workforce, the unions have stated that they are prepared to pursue legal action to challenge the implementation of Circular No. 5/2026 if the government does not pause the process.
They are advocating for a return to the 2010 interim arrangements until a comprehensive, inclusive consultation is held, an independent board is appointed, and a professional actuarial assessment is completed. While the Ministry of Labour and the NSIF have yet to respond, the issue has caught the attention of parliamentarians who are seeking accountability regarding the lack of institutional safeguards in this critical national system.
