NSF Lumpsum
*NSF (National Saving Fund) – Provide payment of a lump sum to every employee at retirement age or earlier, or on his/her death.
Who contributes to the NSF
-Every employer and employee/s of the private sector pays a monthly contributions representing 2.5% and 1% (total of 3.5%) respectively of the basic wage or salary of every employee, aged between 18 and retirement age subject to the prescribed ceiling
-Employers having in their employment household workers must also contribute to the National Savings Fund.
Who is covered by the NSF
Every employee both in private and public sector aged between 18 and retirement age who works under either a full time or a part time contract of service.
NSF Lump Sum
A. Retirement on Ground of Age
(a) to an employee who has retired at the retirement age.
(b) to an employee who has retired from employment before attaining 60 years and the retirement is on ground of age as provided for under the Workers’ Rights Act, a Pension Law, or under a Renumeration Order.
B. Retirement on Medical Grounds
To an employee who has retired from employment on medical grounds duly certified by a Government Medical Officer or a Medical Practitioner in the regular service of the employer. A letter of retirement from the employer together with a copy of the medical certificate must be produced.
C. Redundancy
To an employee who has lost his employment or has retired, on, or after attaining the age of 45, as a result of closure of business or enterprise or any reduction of workforce. A letter stating the ground of retirement from the employer must be produced.
To an employee who has lost his employment or has retired, on, or after attaining the age of 45, as a result of closure of business or enterprise or any reduction of workforce. A letter stating the ground of retirement from the employer must be produced.
D. Death of the employee
The NSF lump sum is also payable where an employee dies before reaching retirement age. Lump sum is payable to
(a) widow/widower of the deceased employee. – Photocopy of the marriage certificate and death certificate should be produced.
(b) Child/children of the deceased employee if there is no widow or widower – an affidavit sworn by the heirs to be produced.
(c) The legal personal representative(s) of the deceased employee if there is no widow or widower or child – an affidavit establishing the heirs of the deceased employee together with the civil status documents to be produced.
E. Expatriates
A lump sum is paid to foreign workers at the expiry of their contract of employment and when they return back to their country.
Lump sum is payable only in case of retirement or death which occurred after 01.07.94 and where NSF contributions have been paid on behalf of the employee after 01.07.94.
- National Identity Card of applicant.
- Birth Certificate of applicant.
- Letter of retirement from Employer.
- Bank account number.
In-case of death of contributor to produce:
- death certificate of contributor,
- affidavit,
- Birth and marriage certificates (if applicable) and NIC of heirs.
In case of retirement on medical ground to produce:
- Medical Certificate from government medical officer or medical practitioner in the service of the employer.
Application may be registered at the Social Security Office nearest to the applicant’s locality or application form can be downloaded from Ministry’s website.
Contact the Social Security Office nearest to your place of residence.