Trade unions representing workers in South Sudan’s oil industry, non-governmental organisations, diplomatic missions and other private sector employers have called on the government to suspend implementation of the National Social Insurance Fund (NSIF) Act 2023, saying the scheme lacks adequate governance, transparency and stakeholder consultation.
In a joint statement issued on Wednesday, the unions said they support the principle of a national social insurance scheme but oppose the way the government is implementing it through the Ministry of Labour’s Public Circular No. 5/2026, which requires compulsory remittance of social insurance contributions.
The statement was signed by Deng Gabriel Matur Malek, chairman of the Dar Petroleum Operating Company (DPOC) National Staff Union; Gabriel J. Gattour Bath, chairperson of the Greater Pioneer Operating Company (GPOC) South Sudan Workers’ Trade Union of Petroleum and Mining sub-office; Victor Vojoki, chairman of the Sudd Petroleum Operating Company (SPOC) Cooperative and Society; and Caesar Zemangi Jacob Atem Anyieth, chairperson of the National Employees Union of South Sudan (NEUSS), which represents employees of NGOs, diplomatic missions, international organisations and other private sector entities.
The unions argued that compulsory contributions should not begin until the fund has established transparent governance structures, operational systems, financial controls, regulations, digital platforms and public awareness programmes.
“The success and sustainability of the NSIF depend not only on legal compulsion but, more importantly, on the confidence and willingness of employees and employers to entrust the fund with their lifelong savings,” the statement said.
The unions said the government had begun implementing the scheme before completing key institutional and operational requirements, including establishing an independent Board of Trustees and executive management, developing regulations and operational manuals, setting up digital systems and financial controls, registering employers and employees, and conducting public awareness campaigns.
They also questioned whether appointments to the Board of Trustees and senior management complied with the NSIF Act 2023, arguing that contributors were not adequately represented in the fund’s governance and that the Ministry of Labour had too much influence over its management.
The unions further raised concerns over the transition from the previous social insurance framework under Circular No. 3/2010, saying workers lacked clarity on accrued contributions, retirement benefits, short-term employment contracts and pending employer obligations. They said important policy clarifications had been communicated through the NSIF’s Facebook page rather than by an official government directive.
The statement also said employees working on short-term or donor-funded contracts, particularly in humanitarian organisations, diplomatic missions and the oil sector, risk being disadvantaged under the new system because the government had not adequately explained how they would qualify for benefits.
The unions said employees and employers had not been meaningfully consulted before the issuance of Circular No. 5/2026 and warned that the credibility of the fund depended on broad stakeholder participation and public trust.
They called on the Ministry of Labour to suspend implementation of Circular No. 5/2026, retain the previous arrangements under Circular No. 3/2010 as an interim measure, review the governance of the NSIF, establish an inclusive national consultation process and commission an independent actuarial valuation and labour market assessment before fully implementing the scheme.
The unions warned that unless their concerns were addressed, their legal teams had been instructed to challenge the implementation of the circular in court and pursue other remedies under South Sudanese law and international labour standards.
The Ministry of Labour and the National Social Insurance Fund did not immediately respond to the unions’ concerns.
South Sudan passed the National Social Insurance Fund Act in 2023 as part of efforts to establish a national social security system for workers in both the public and private sectors.
The dispute follows a Ministry of Labour circular issued in April 2026 that revoked Circular No. 03/2010, which had allowed employers to retain and manage social insurance contributions.
The new directive ordered all employers, including private firms, NGOs, UN agencies and diplomatic missions, to deduct and remit both employer and employee contributions directly to the NSIF on a monthly basis.
The ministry said the measure was intended to operationalise the NSIF Act and strengthen social protection, while warning that compliance was mandatory. Employers were instructed to clear any outstanding contributions and await further guidance on contribution rates, designated accounts and registration procedures from the fund’s management.
However, the rollout has drawn scrutiny from legal experts and stakeholders who say key requirements, including employer and employee registration, issuance of social insurance numbers and establishment of enabling regulations, should precede full enforcement of deductions and remittances.
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