Workers Compensation Act for revision

From SYLIVESTER DOMASA in Dodoma

THE government has commissioned a detailed review of the workers compensation law to ensure a fair modality of contribution to the social security scheme responsible for compensating workers who suffer occupational injuries or diseases in the course of their employment. Under the Workers’ Compensation Act, 2008, the legislation requires all employers to contribute a monthly basisannual tax bill to the WCF.

Technically private sector employers contribute one percent against 0.5 percent of public sector employers. But Minister of State in the Prime Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled), Ms Jenista Mhagama, has ordered a risk assessment exercise to come up with a new modality to ensure the statutory contribution. “There has been concern about the contribution difference.
We hope the risk assessment exercise will allow the government to know the sectors with extreme or least risks,” she said. “This means if the sector has extreme risks it will be required to contribute more than those with least risks,” she said at the meeting organised by Workers Compensation Fund (WCF) bringing together the Private Sector (TPSF) and the Association of Tanzania Employers (ATE). Should Tanzania adopt the new plan, it will be joining other countries such as South Africa where employers’ contribution depends on risk factors.
The minister said the government will, however, take all precautions to ensure the new measures do not disturb the fund or its beneficiaries. Ms Mhagama said since the Fund was established in 2015, it has released at least 2.52bn/-. It has about 13,500 members including private and public employers. “This Fund has turned out to be a huge relief to employers but also employees whose salaries would have not been enough to foot medical bills,” she said. Before the government enacted the new law, victims of occupational injuries or diseases used to pocket at least 108,000/- in compensation.
Some beneficiaries admit that the Fund has changed their lives, giving workers hope of their future lives in the middle of unexpected injuries or death. At the meeting here yesterday, some victim of permanent injuries said they received over 30m/- in compensation and still they earn nearly 200,000/- in monthly pension pay. Ms Muhagama called on employers to ensure they subscribe to the Fund for the benefit of their investment and the employer-employee work relationship
. She insisted that as the country moves to implement an industrial driven economy, WCF membership will not be an option but a mandatory undertaking. ATE Immediate Past Chairperson Mr Almas Maige, speaking at the meeting called on employers to make full utilization of the opportunity to improve their productivity. “The Fund is a solution to a number of challenge that employer face ... With the fund, you have more time to think of production not medical expenses,” he said. WCF Director General, Masha Msomba expressed the Fund’s commitment to improving the welfare of workers saying it has been taking swift measures to ensure all the victim are taken care off.