Gerald Research Presentation

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CONRIBUTIONS OF FORMAL SOCIAL SECURITY SCHEME
TOWARDS WORKER’S WELFARE
A CASE STUDY OF NSSF_KINONDONI REGION DAR ES SALAAM
By
Josephat, Gerald
A dissertationSubmitted in Partial Fulfillment ofthe requirement for Award of
Bachelor Degree in Industrial Relations at the Institute of Social Work
Institute of Social Work
Dar es Salaam
June, 2015

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DECLARATION & COPYRIGHT
I, JOSEPHAT, GERALD declare that this research is my own work. It has not been
submitted in any other Higher Learning Institution within and outside Tanzania for a similar
or equivalent award.
Signature……………………………
Date…………………………………
All rights reserved. No part of this research may be reproduced, photographed or otherwise
without either the prior written permission of the author or the Institute of Social Work on my
behalf.

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CERTIFICATION
I certify that report entitled “the contribution of formal social security scheme towards
worker’s welfare at Kinondoni Region in Dar es Salaam, is an independent research work
carried out by JOSEPHAT, GERALD. This report has not been previously submitted for the
award of Bachelor Degree at any High Learning Institution within or outside Tanzania.
Signature…………………………
Mr. Nikodemus Banyukwa
Supervisor
Date………………………………

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DEDICATION
To my beloved Guardians Mr. and Mrs. Josephat Lucumay who raised and sent me to school
and for their invaluable inspirations to my studies.
Secondly, to my siblings family of Mr. & Mrs. Lucumay for their prayers, financial support
and encouragement in my studies so that I can keep be in a successful side as well as
completing greatly to the research work of the present study.
MAY GOD ALMIGHT REWARD THEM MORE

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ACKNOWLEDGEMENT
Research involves interacting with people in exchanging ideas and seeking assistance and
support both moral and material. The researcher feels much grateful to those who assisted
and supported in one way or another.
First and for most, I would like to express my sincere gratitude firstly to GOD ALMIGHTY
for His Merciful and Protection in my day to day life including the time of undertaking
research work of the preset study.
Then I would like to thank my Research work Supervisor Mr.N. Banyukwa, for His tireless
work in the whole work for God’s Glory. Also special thanks’ to Head of Department of
Labour Studies, other Lecturers at Institute of Social Work for their Directives which helped
me to increase the knowledge and skills in accomplishing this research.
My gratitude also goes to my beloved classmates’ third year students’ of Bachelor Degree in
Industrial Relations of Academic year 2014/2015.

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ABSTRACT
Social security plays a vital role in socio and economic development to an individual and
national at large. This study sought to find out the contribution of formal social security
scheme towards worker’s welfare. The study was conducted in NSSF Kinondoni region, Dar
es Salaam. Both qualitative and quantitative approaches were employed using a sample of
fifty respondents who were NSSF management and workers (beneficiaries) who receive
benefits and services. The main research instruments used were questionnaire and interview.
Both qualitative and quantitative data collected were analyzed using simple descriptive
statistical methods such as frequency, percentages, figures and tabulations.
The findings revealed that despite the fact that NSSF proved to be the Centre of better and
standards benefits and services to its members, it was found that even the service offered are
still below the ILO standards and still there is numbers of opportunity to capture the gap,
NSSF policy should be newly drafted and structured, however its services coverage is largely
in the formal economy most of the workers engaged in informal economy and self-employed
are not yet covered, adequate employees financial record should well managed, and extensive
consultation with the government Institution for regulating social security matter SSRA
should be an added advantage.
On the basis of these findings, it was recommended that for the government they should make
an effort on the strategy poverty reduction through provision of social security and protection
to its large population,NSSF members should form an operatives association to focus their
interests, and also NSSF management should develop alternatives services to its members
and increase the rate of benefits so as to help workers to meet their daily livelihood.

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LIST OF ABBREVIATIONS
DEPT Department
NGO’s Non Governmental Organization
ILO International Labor Organization.
ISW Institute of Social Work
SSRA Social Security Regulatory Authority
NSSF National Social Security Fund
LHRC Legal and Human Right Centre
TAMWA Tanzania Media Women Association
CCK Chama cha Kijamii
MP,s Members of Parliament
U S A United States of America

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TABLE OF CONTENTS
DECLARATION ........................................................................................................................i
COPY RIGHT.......................................................................... Error! Bookmark not defined.
CERTIFICATION ..................................................................................................................... ii
DEDICATION...........................................................................................................................iii
ACKNOWLEDGEMENT ........................................................................................................ iv
ABSTRACT...............................................................................................................................v
LIST OF ABBREVIATIONS................................................................................................... vi
TABLE OF CONTENTS..........................................................................................................vii
CHAPTER ONE ......................................................................................................................1
1.0 Introduction..........................................................................................................................1
1:1 Background to the Problem .................................................................................................2

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1:2 Statement of the Problem.....................................................................................................5
1:3 Objectives of the Study........................................................................................................6
1:3:1 General Objective .............................................................................................................6
1:3:2 Specific Objectives ...........................................................................................................6
1:3:3 Research Questions...........................................................................................................6
1:4 Significance of the study......................................................................................................6
CHAPTER TWO .....................................................................................................................7
LITERATURE REVIEW .......................................................................................................7
2:0Introduction...........................................................................................................................7
2:1 General Overview of Formal Social security Scheme .........................................................7
2:2 Theoretical Frame work of The Problem.............................................................................9
2:3 Over view of Formal Social Security Scheme in Tanzania ...............................................10
2:4 Social Security Scheme in Tanzania and Problems Associated with; ...............................11
2:5 Overall Challenge Facing Social Security Sector in Tanzania; .........................................13
2:6 Members Complaints on Barred Withdrawal Benefit; ......................................................14
2:7 Scheme’s Financing...........................................................................................................15
2:8 Registration........................................................................................................................15
2:9 Achievement of National Security Fund ...........................................................................16
2:10 Challenges Facing the Fund.............................................................................................16
CHAPTER THREE ...............................................................................................................18
METHODOLOGY ................................................................................................................18
3:0 Introduction........................................................................................................................18
3:1 Research design .................................................................................................................18
3:2 Area of Study.....................................................................................................................18
3:3 Study Population................................................................................................................18
3:4 Types of Data.....................................................................................................................18
3:5 Sample size (sample of the study) .....................................................................................19
3:6 Sampling Technique (methods) .........................................................................................19
3:7 Method of Data Collection ................................................................................................20
3:8 Questionnaire .....................................................................................................................20
3:9 Interview ............................................................................................................................20
3:10 Documentation.................................................................................................................20

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3:11 Data Analysis...................................................................................................................21
CHAPTER FOUR.......................................................................Error! Bookmark not defined.
DATA ANALYSIS, PRESENTATION AND DISCUSSION OF THE FINDINGS...Error!
Bookmark not defined.
4.1 Introduction........................................................................ Error! Bookmark not defined.
4.1.1 Data presentation............................................................. Error! Bookmark not defined.
4.1.2 Data analysis ................................................................... Error! Bookmark not defined.
4.2.1 Working experience ........................................................ Error! Bookmark not defined.
4.3 Verification of the Research Objectives ............................ Error! Bookmark not defined.
4.3.1 Research objective One................................................... Error! Bookmark not defined.
4.3.2 Research objective two ................................................... Error! Bookmark not defined.
4.3.3 Research Objective Three ............................................... Error! Bookmark not defined.
CHAPTER FIVE ...................................................................................................................30
SUMMARY, CONCLUSION AND RECOMMENDATION............................................32
5.0 Introduction........................................................................................................................32
5.1 Summaries..........................................................................................................................32
5.2 Conclusion .........................................................................................................................33
5.3 Recommendations..............................................................................................................34
5.3.1 Recommendation to the NSSF members ........................................................................34
5.3.2 Recommendation to the Government .............................................................................34
5.3.3 Recommendation to the NSSF management ..................................................................34
REFERENCES ........................................................................................................................22
APPENDIX “A” ......................................................................................................................37

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CHAPTER ONE
INTRODUCTION AND BACKROUND TO THE PROBLEM
1.1 Introduction
Social security means that it is any kind of collective measures or activities designed to
ensure that members of the society meet their basic needs and protect from contingencies
enabling them to maintain the standards of living consistent with social norms.(Dau 2003:1)
In a broader sense social security provided that the protection measures which scheme
provided for its members, through a series of public measures against economic and social
distress that will results to be caused by stoppage or substantial reduction of earnings
resulted from sickness, maternity, un employment, dis abilities, old age, death, or any other
kind of employment injury. Furthermore, the schemes are also responsible for the provisions
of medical care’s subsides for their families with children (ILO: 1984).
During the 19th C, in the early period of industrialization most of the workmen’s started to be
more dependent upon wage employment, the working society become more dependent upon
wage employment, the workmen’s desired the life of work to be industrialized too, so the
social security has been with time to time from the traditional ways of security to modern
ones, so as it was reached in 19th C the workmen’s society was no longer possible for them to
depends on the traditional system of social security they need to cope with the existing
challenge of socio-economic issues brought by globalization.
The study critically is going so far to analyze the contributions of formal social security in
promoting welfares in Tanzania. The case study will be covered at either any one of the
social security Office.
The report of international labour standard organization on the world coverage of social
security statistical monitoring of the state and developments of social security in the world, it
present the knowledge available on social security coverage in different parts of the world
and examine the scale of the countries’ investment in social security in the context of
economic crisis, although a social security is a human right, only the minority population of
the world enjoy that right while the majority lacks comprehensive and adequate coverage
and it cover about one third of the population.

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In sub-Saharan Africa and south Asia, the numbers of people with access to even the most
rudimentary protection is estimated to be less than ten percent.
1:2 Background to the Problem
Currently, in recent years much effort has been done to the formations and reforms of social
security systems in the developed nation and developing nations respectively.
In that sense the debates and discussions has been centered on the questions of what kind of
services to be provided in terms of social security that could be appropriate and standards in
the growing and rapidly change of the economic and social structure environment globally.
In terms of developed nations more than 90% of the populations are almost covered by the
social security systems. In developing countries despite consider the effort on parts of
policymaker’s, development institution and donor agencies well cover about 50% of the
entire populations this implies that it’s a half/ half game , in that manner the remain 50%
remains uncovered in terms of social security service benefits hence there is great possibility
of fallen to risks and socio-economic contingencies
Fallen to risks therefore being a major and commonly threats in the day to day life of the
people in developing countries especially in sub-Saharan countries, facing different numbers
of social and economic problems like, disability, illness, death, natural disaster and other
social and economic distress and fluctuating incomes of the individuals and the problems of
unemployment, child and old age are therefore affect the quality of life. (Johannes; 1999:1)
Early in 1883 Councilor Otto Von Bismarck the reign of Germany in those old days
introduced government of financed social insurance, under that strategic plans as a means of
social security services aimed to provide the services for the employees who get sick and
could not engage in the productions, and receive a medical cares benefits and cash benefits
from which it was found that both employees and employers were contributors to that
scheme. Way forward in 1889 the law was amended and passed in Germany granting a
pensions virtually to all Germany workers at the age of 70’s years, Bismarck social insurance
scheme was firstly to be introduced in Germany, it ,mark the initial point of the development
of social security scheme in Germany. However it was the US, President Honorable
Roosevelt who converts a philosophy of the welfares state inspired party by the theoretical
work of John Maynard Kegnes and partly by experience of government action in the e first

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world war one (WWI) and the recession of the1914- 1918, and later on the great economic
depression of the years 1929-1933 which gave the rise of serious debates and various
discussions over economic policy plan to reduce the numbers of economic and social
miseries.
Although the concept of social security systems in developed nations grew rapidly after the
world war two (WWII), many Europeans countries introduced different social security
schemes and made reforms of employment benefits and various social assistance to re -
establish individuals reforms thought was being threatened by the existing policies. Social
security systems are complex in its nature since it requires a lot of resources and
techniqualities to handle the duty ( Jacques D;2007:2)
In England, the development of social security systems can be traced as far as back from the
period of industrial revolutions, during the industrial revolutions era there were increased
numbers of beggars of the decentralization of the family and kingship system which provided
the security needs and welfares to vulnerable groups such as old age, children’s, and disabled,
there was numbers of associations established to offers the security protections in the society.
Social security Act of 1935 was one of the responses the economic crisis. The legislation
established the modern centralized US, pension system with provisions covered the old age
people pensions, survival benefits, disability benefits, unemployment programs and support
the families with dependent children’s. Sometime the social security scheme was founded out
of the current revenue of a country raised through “a pay as you go” payroll tax system.
In developed nations , social security covers workers and their dependants against old age,
unemployment, health and medical cares and other risks are cured ,while in developing
nations the formal social security scheme system covers workers of formal sectors, workers
are the privilege groups provided with social security benefits and to some extent poor have
access to social assistance and social disaster services or help like flood, fire, earthquake’s,
and the volcanic eruptions but the remaining large populations are surely not covered (Jean
D;2007:3).
However the fact that in sub-Saharan Africa around 50% society live in extreme poverty,
shown under the current statistics, social security in Africa should first and for mostly
address the main social problems of continent at large, it should be well known that social
security transfers whether in kinds or in cash is the only solutions or tools to reduce extreme

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poverty, social insecurity and the socio-economic miseries at all stages level of economic
life cycle of a particular nation, If well managed governed effectively it work immediately to
combat poverty (Ruck M;2005:4)
ILO shown that due to level of economic status of many of Africans state being low but most
of the Africans countries could even afford to provide the modest levels of universal social
protection consisting of at least basic social security protections like health cares access, free
education and the basic universal pensions in case of old age, invalidity and survival (ILO;
2004:1).
The statistic shows that population of Tanzania is about 40 million recently. Out of these 70%
are found in rural areas, while the rest are in urban areas .And the total numbers of the labour
force in the Tanzania are estimated to about 16% millions, the mandatory formal social
security system covered about 2.7%milions and the 94% of the capable workforce are
engaged themselves in the informal sectors mostly in Agricultural sector in both rural and
urban (Social security Policy; 2003:5).
In 1964 Nyerere, the first president of Tanganyika enacted the National Provident fund
(cap564 of the law) to provide for the contributions and payment of the benefits of the
retirements, death, invalidity, and in case of sickness. It is a philosophy of the welfares for all
the Tanzanians including both women and men, children’s and the old age, and the disable
people living in the peace and unity which was characterized the most dominant vision and
mission of the Late Mwalimu J. K. Nyerere.
However well before independence social security system existed in Tanzania before where
by various policies statement have been created and some acts were amended regard the
protections and security of the entire society against socio-economic contingencies like
injury, old age and the loss of employment, just to mentions in few includes Master and
Native Ordinance of 1923 as well amended in the year 1954 respective, The Provident Fund
Ordinance of 1942, The Local Authority Provident Fund cap.53 of 1944, The workmen’s
Compensations Ordinance cap.262 as amended in the late year 1963 respectively.
So after the Independence the system of social security protections in Tanzania has not be
static it was changing time to time so as to suit with the currently existing environment, new
policies were formulated like The National Social Security Policy of 2003, also there was

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institution formed purposeful to regulates the social security scheme like Social security
Regulatory Authority (made under section 6 and 36 of the social security (regulatory
Authority) Act no.8 of 2008 as amended.
In this context that social security takes the center theme of the socio-economic policy and
rules formulated, and the policy makers have to be competent enough of the understandings
of the role of the social security systems in the socio-economic development at large and
there is a direct link between the social and economic development one can’t be achieved
without the other it is a complimentary objective in that sense (Rwegoshora; 2000).
1:3 Statement of the Problem
The establishment of social security scheme systems in Tanzania can help to a great extent in
the reduction of poverty to entire nation at large, due to different kind of services offered like
injury benefit, old age pensions, maternity benefits and other services in terms of social
assistance provided to by the government to its citizens and among almost kind of services
are provided under the existing formal social security schemes but the problems comes in
terms of scope coverage and to what extent the benefits are provided.
However the methods of providing these services differed from one another scheme, from
one country another but we found that there are common kind of services provided under
these scheme provided that they both aimed at improving the quality standard of livings such
as employment injury, health insurance, maternity benefits, also the compulsory and
voluntary social assistance of which are offered by different numbers of social security
scheme in Tanzania like, NSSF,PSPF, LAPF, NHIF, GEPF, and PPF to its members.
So the central theme of the study needs a Researcher to analyze critically what’sexactly
kinds of benefits are NSSF provided to its registered members , if the services offered is
satisfied to the members and at the end of the study the will gives the readers the intellectuals
mind and knowledgeof the contributions of formal social security scheme towards the
welfares of workers and the entire society at large, and the study is to answers several
numbers of questions which have not yet been covered by the previous studies.

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1:4 Objectives of the Study
1:4:1 General Objective
To find out the contributions of formal social security scheme in promoting workers welfare
in Tanzania. A case study of NSSF –Kinondoni region, Dar es Salaam
1:4:2 Specific Objectives
1. To explores kinds of services provided by NSSF to its members
2. To measures members satisfaction to the services rendered by NSSF
3. To investigate problems which hinder the effective provision of social security services to
its members.
1:4:3 ResearchQuestions
1. What kinds of services are provided by NSSF to its members?
2. Do the services rendered by NSSF satisfy its members?
3. What are the problems hindering the effective provisions of social security services to its
members?
1:5 Significance of the study
The firstly important significance of this study is to help a student in the partial fulfillment of
the award in bachelor degree in industrial relations.
The study also goes to identify the unfulfilled research gap by the other previously researcher
concerning on the same field, hence come up with some new ideas, views and suggestions to
combats the problems.

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CHAPTER TWO
LITERATURE REVIEW
2:1 Introduction
The National Social Security Fund (NSSF) was established by the Act of Parliament No.28 of
1997 to replace the defunct National Provident Fund (NPF). NSSF is a compulsory scheme
providing a wider range of benefits which are based on internationally accepted standards. A
literature review is an account of what has been published on a topic by accredited scholars
and researchers. In writing the literature review, your purpose is to convey to your reader
what knowledge and ideas have been established on a topic, and what their strengths and
weaknesses are. As a piece of writing, the literature review must be defined by a guiding
concept (e.g., your research objective, the problem or issue you’re discussing or your
argumentative thesis), with the aim to seeking information related to your area of study (Dena
Taylor: 2000)
2:2 General Overview of Formal Social security Scheme
In a year 1939 social security benefits were expanded to a retired workers, spouses and minor
children, In 1956 to severely disabled workers, these extensions helped to cover more people
in need. (Joseph L; 2007:6)
Social security schemes are the results which have been achieved by comprehensive and
successfully series public measures for protecting them from the economic and social
distress. And the absence of that measures could be caused by the stoppage of earnings in
time of sickness, old age, invalidity, unemployment, maternity and after bread winner, the
public provides the medical care’s as needed to the children’s and other needs of the
subsidiary families by bringing up the young children.
When Franklin Roosevelt signed the social security act, into the law, there was absolutely no
administrative infrastructure to put the old age insurance program into operation. Thus,
between August 1935 and January 1937, mechanisms had to be developed to collect taxes
and track the earnings of the workers for determination of benefits. The social security Act of
1935 made it clear that the financing of the program was through “tax” mechanisms.
(Sylvester; 1999:43).
The western concept of Social Security has greatly influenced the discourse about social
security. The ILO was for a long time the only existing instruments institutional agency with
academic capacities as well as field experience in designing state organized thus, social

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security has been dominated International debate. In fact the understanding of social security
as referring to mainly specific public program involving. Social assistance, social insurance
and re-distribution is based on the experience and situation in developed countries.
(Kotlikoff; 1987:132).
Many of industrialized nations like the United State (U.S.A) has instituted the programs to
help the individuals face the uncertainty brought on by the disability and the old age and the
structure of these programs were initially shaped by the important social, economic and
demographic changes that rendered the traditional systems of economic security increasingly
jobless(Michael D;2004:14).
Up the 1930’s the regulations governing the security of employed persons and old age and
was applied in certain European Employers. The regulation for African employees was
passed in 1932 with the pension Ordinance which provided the payment of old age pensions
for holder of high position in the public services, then ten years later on 1st of Nov, 1942 the
Provident Fund “Government Employees” was passed in to establish a provident fund to
cater for public servants. This Provident Fund provides payment in a case of Invalidity, old
age and other cases of premature termination of employment.
The general outlook of social security in England their program has been divided into two
parts, thus, is a public assistance which includes housing, medical care, Health services and
so on. Another part is a comprehensive Social Insurance system which is for economic
hazards, old age, death and disability.
The main aims of these schemes was to protect the workers from the risks such as sickness,
maternity, death and old age, the features of these contingencies is that, they tend to imperfect
the ability of a worker to support himself and hid dependents in the health and decency, And
all these are the welfares of workers in any society that each scheme should provide to their
members.

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2:3 Theoretical Frame work of The Problem
The term theory refers to a set of reasoned ideas intending to explain facts of an event, it
encompasses a set of assumptions and concepts irrelatively abstract of inquiry distinguished
from empirical research (Lane, 1996). Using a theory in the study it’s normally limiting the
scope of events to be considered or described in the phenomena, Theoretical frame give a
researcher more prediction that may be tested by his data. Thus theoretical framework of
social security is thus rotated to the many of the ideas based on human dignity and to the
social justice to a large extent, of which is very common network of all definition and
concept by different people (Individuals), MP’s, Independent institution, various ideas from
different researcher, Trade unions discussion, and a State responsiveness to the entire
community on the needs and adjustment of social justice
Theoretical framework is an important part of the research since it offers the basic insights
and perspectives that inform a particular research.
Researcher reviewed various literatures and publications which guided him on a conceptual
frame work to build his own theoretical views and analysis .Citing from magazines,
newspapers, brochures, previous researchers, Annual report from NSSF, ILO Reports, SSRA
publications, The National Social security policy of January (2003) Blogs, Government
Bureau of statistics, together with Tanzanian Parliamentary discussions and presentation
made it possible and basis in drawing conclusion of this study.
Therefore the theoretical of social security is related to the idea of human dignity and that of
social justice in the alleviation of poverty in the society. Three tiers aimed to seek and
effective utilization of various funding resources (National wealth) for the better protection of
the entire country population (ILO; 1994:57). Furthermore the study has been guided by ILO
minimum standard. International Labor Organization set an instrument which was adopted at
its 35th session in June 1952, popular known as social security( Minimum standards)
Convention No.102 itemized numbers of contingencies and benefit required in the minimum
standards convention includes, Old age, Invalidity, Survivorship, Employment injury,
Maternity, Medical care, sickness, Unemployment and Death.
Frame work of social security is thus guided on three tier system, this structure includes the
followings:-
According to ILO framework, three tier systems is arrangement/system designed to cater for
different needs of protection for different categories of people depending on their level of

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incomes. Tier one, which is financed by the government, caters for those who are not able to
purchase social security services; e.g., sick, disabled, elderly and possible group to fallen
under risk. Tier two caters for those who can contribute and is compulsory and supervised by
the government. Tier three caters for those who can afford to supplement their tier two
security by purchasing commercial insurance benefits. Tier three is voluntary and privately
managed. Three tier system is designed to reduce the government expenditure in on social
assistance/security programs through expansion of coverage of Tier two and three.
In Tanzania the most dominant scheme is social insurance due to low economic capability of
the government to issue free coverage to all its citizens, however there are some basic steps
that the government is taking care of like free primary education and health cares to the elders
though it is not practiced adequately. One of the major role of social security scheme is
provisions of social protections and income security for members and basic needs to all
citizens. In African countries has not been possible. Ackson, (2010) Revealed that in
Tanzania it is only 6% of the working force that are covered. In Global statistics, ILO,
(2010/11) presented that by the year 2010 coverage was 50% of the entire world population.
However from that group only 20% enjoy adequate coverage, the main reason for this poor
coverage is said to be a rescission of the informal sector which is the majority in all countries
especially in developing ones. While attending this challenge, other issues like poor countries
policy, increasingly demographic of the ageing, extended family structure, economic
globalization and environmental development raises more challenges to social security
scheme.
2:4 Over view of Formal Social Security Scheme in Tanzania
Tanzania has being one of the British Colony has adopted some laws and procedures from the
English common law, judicature and the application of laws Ordinance cap.No.453 of 1961
and Indian civil procedure of 1908. This implies that the formal social security system has to
be categorized into two groups.
The first one is the pensionable officers who are the government employees. And the second
one is the non-pensionable officers who make contributions to the fund. It includes both
employers and employees contributions.
Formal social security scheme operating under the principle of compulsory savings and social
insurance are financed either through bipartite or tripartite contributions from employees,
employers and the government on the regular basis.

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Formal social security scheme is a regulated mechanism of protecting citizens against
contingencies. This system existed in Tanzania well before independence whereby various
policy statement have been made and Acts passed regard to the protection of the entire
population in the country against contingencies like injury, loss of employment and old age.
These includes Master and Native Ordinance of 1923 as amended in 1954, The Provident
Fund Ordinance of 1942, Government Employers provident fund cap.51 of 1948 as amended
in the year 1962 and the Workmen’s Compensation ordinance cap.262 of the year 1948
After the independence new legislation were enacted and others amended. These include the
statutory severance allowance of 1962(S.A). The National Provident Fund Act of 1964,(NPF)
as amended by Act No.2 of 1975 which was later repealed and replaced by the National
Social Security Fund Act No.28 of 1997(NSSF), the Public Service Retirement Act of
1999(PSR) and National Health Insurance Fund, Act. No.8 of 1999(NHIF). These
legislations passed before and after independence are devoted to the coverage of formal
sector while informal sector left out (Dau R; 2003:3)
2:5 Social Security Scheme in Tanzania and Problems Associated with;
It is argued that in pre-colonial before the coming of the colonialism, there was various
society with different kind and forms of social security protection like any other countries
Tanzania had a strong informal and traditional social security system built on family and or/
community support. In time of contingencies such as famine, diseases and old age,
individuals has depended on family, clan members and members of the community for
assistance in the form of cash or in kind. While it recognized that over time traditional social
security system has tended to decay and change forms in response to the forces of
urbanization and industrialization, there is
evidence that in Tanzania family and community social support system has remained as
means of social security within different social groups.
Over time socio-economic reforms have slowly resulted into disintegration of the family
based social security protection leading to the formation of self-help groups such as UPATU,
UMASIDA and VIBINDO currently popular known. (NSSP, 2003)
The formal social security schemes seen today are revealed by Eckert(2004) who says are the
product of colonialism introduced to save some interests of Europeans and few elite Tanzania
who working for the colonial government.

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However, Barya (2011) learned that Tanzania, Kenya and Uganda did not change much the
social security system inherited from the colonial despites all the shortfalls these schemes
embraced. He further learned that this is a main reasons why the schemes we have today have
many shortfalls. I agree on Barya, (2011) that it was not necessary to change these schemes to
fit our environment that could take challenges of our present society needs. However it was
difficult to have a universal scheme by the government due to poor economic capability of
our country.
Currently we have National Social Security Policy (2003) which considers social and
economic changes occurring in the country and liberalizes this sector in Tanzania. The re-
formation, re-organized activities of social security providers to act in response to the market
demands considering free market economy.
It is believed that despite the fact that having a number of available social security schemes,
coverage is still very poor. Baruti (2007), sees that Tanzania has potential opportunity to be
covered by the schemes available. However it is only of recent effort the government has
intervened to extend coverage with informal sectors which is considered a green pasture of all
schemes. Although Baruti (2007) Advocates potential opportunity but he is not mentioning
strategy to be employed to add the omitted ones. He also has not identified how the peoples
in the informal sectors could be handled with matters concerning compliances. This group is
so difficult to maintain because of the nature of their business and none existence of the
permanent business place. Indeed this sector is very potential but needs cares on how to
handle.
Maghimbi at el, (2002), recognized that opportunity available for social security in Tanzania
has not yet be covered well by any of the schemes in the country. He further identified that
social security schemes in the country has failed to contribute equitable economic growth and
are there to flourish the rich out of the sweat of poor members of these schemes. His eye
marking things like credit granted to some of the business people from contribution made by
the poor members and other investments made which are utilized by well off people leaving
the poor members not enjoying their sweats. The above statement is true to some extent,
however, investment made by these schemes apart from offering employment they are also
contribute to the GDP and thus contributed to the economic growth of the country. Beautiful
buildings erected attract investment and more business at the same time offer employment

13
during constructions, Maghimbi at el, (2002) suggested that members should be given first
priority when it comes to credits facilities.
2:6 Overall Challenge Facing Social Security Sector in Tanzania;
Overall management and administration of social security fund are vested to the board of
trustees and the director general all appointed by the government through the responsible
ministry. Due to this there is excessive government control over the schemes in issues
relating to investment decision and expenditures NSSF. Act no.28 1997. Grandiose
investments made by this sector in favor of government interested can be seen in University
of Dodoma, Machinga complex,Ilala, police and military houses, all are none performing
project as revealed by CAG Report,(2012).
Actuarial evaluation made by ILO (2004) in respect of NSSF for the year 2002 depicted very
high administrative expenditures 22% of the fund’s income whereby the required amount is
less than 15%. This problem could be arrested by merging some of the NSSF Department
with similar functions, reducing number of office at district level, and investing heavily on
computerization to improve efficiency and increase control. This will strengthen services
delivery and attracts more members that will increase fund financial position and arrest the
problems of poor record keeping that causes dalliance on benefit provisions which discourage
members.
There is lack of another problem of interactions between schemes. Members cannot move
from one scheme another (lack of portability). This is a really problem since there are
members like non pension government employees who are members of NSSF cannot shift
their money and credit to PSPF when qualified for registration with PSPF.
The last identified challenge is that of pension schemes in Tanzania savings only working
elite leaving the majority in the informal sector uncovered, there are no strategic for
substantial public campaign on understanding importance of social security and formalization
of the informal sector so that could be easily to taken in the scheme. These if taken inn are the
majority and could flourish the scheme.
Researcher identified that there is a need of NSSF to maintain their future financial
sustainability of the scheme. In doing this it is mandatory to increase retirement age, increase
contribution amount, put inn aggressive means to register informal sector and invest only on
viable project with high yield but of short terms to cover short terms liquidities and priories
given to members who are the primary focus.

14
2:7 Members Complaints on Barred Withdrawal Benefit;
Confining withdrawal benefits could not be accepted by majority of members of social
security schemes all over the country, particularly those in private. The Citizen 26 July 2012
report from Mwanza that over 600 employees from seven major gold mines in the lake zone
have resigned following amended law to confine withdrawal from social security. Other 4000
have submitted resignation letters to their employers, appalled by the new imposed
pensioner’s law as revealed by the citizen 26 July 2012.
Some social security scheme members were of the opinion that the policy change would
disrupt their life plans once they get out of job, they expect to use their money from their
social security scheme to support their families. They complaint that what they got from
employment is hand to mouth and they have nothing left for savings other contributions made
to social security schemes. Also they do not expect to get the job anywhere else after being
laid off from the current job they have and are plan to run minor entrepreneurship business as
the only means to earn means of leaving. This is why they received such an announcement
with anger. The Citizens 28 July 2012.
Other actors than members of social security scheme that have intervened to discourage the
government from implementing this policy. Trade Union Congress of Tanzania (TUCTA)
told their members that although they have no power to reverse the law suspending
withdrawal of benefits in social security schemes before members attained the age of 55 as a
voluntary and 60 years as compulsory will help placing arguments in court for restriction of
its operational. The Guardian 24thJuly 2012
The issue was also captured by LHRC, TAMWA and Scholars Tanzania July, 26 2012. The
government has already committed to liberalize social security sector, which for years
covered only people in formal employment. Today schemes are obliged to let the member’s
free to decide on which scheme to join and in matter like when one want to withdraw and or
loans. The liberalization is expected to bring in private players who will also venture into
modes of schemes operations. Daily News, (21 September 2010).
Some members wrote in magazine whether SSRA acted on workers interests or on
government, according, to them quashing withdrawal benefits brings in high risks of poverty
within the society since Tanzania does not have any other formal safety net program for a
persons who are jobless. They confess that most of Tanzanians and especially those in non-
government are on contractual terms of short period like six months or even less and after

15
completion of their contracts they wish to establish their own business from savings they
made at social security schemes and quit employment permanently. The Citizens, 05 August
2012.
The Citizen (30 July 2012). Wrote that opposition party Civic United Front (CUF) and
Chama cha Kijamii (CCK) have been noticed mocking jointly against recently changes to the
social security funds laws as being oppressive and non-considerate to workers. The two
called the government to immediately prepare a bill and table in the parliament for
reinstatement of the laws and reverts to the original state of free members withdraw;they
further complained that many workers would be affected if blocked from accessing their
social security contributions, “The government should not play with people’s money”. The
law should be changed immediately but if the government refuse to amend the law, the
parties would go to court to seek redress.
2:8 Scheme’s Financing
The scheme is financed through contributions at the rate of 20% of employee’s salary. The
employer is required to deduct from emp0loyee’s gross salary the amount of contribution not
exceeding 10% of the employee’s salary. The employer adds the remaining balance to make
the required contribution rate of 20%
2:9 Registration
The national Social Security Fund Act No.28 of 1997 provides for registration of both
employers and employees. Section 11(I) of the Act provides that every employer, unless such
employer has been registered under the existing fund, shall register with the NSSF within one
month. The period of one month begins upon the commencement of the Act or the date when
the concerned person becomes a contributing employer.
The registration of employees is provided under Section 11(6) of the Act. The Section
provides that every contributing employer who is registered by the NSSF shall registered as
an insured person every person who is employee in his firm by notifying the Director General
of the particulars of such employees as may be prescribed . The registered insured person
automatically becomes a member of the Fund.
Registration of an employer and employees must be done first before payment of
contributions begins and the activity is accomplished at NSSF field offices.

16
2:10 Achievement of National Security Fund
The fund participated in community development in various social activities in the country
which brought about development to the entire nation, and these social activities are as
follows;
a) The Fund donated various hospital facilities and equipment’s in the country, for
instance in the year 2004,March during the NSSF week which was held in Dar es
salaam the funds provided deliver beds and weighing scale at Mwananyamala hospital
all having the value of not less than Tshs. 20million.
b) Also fund provided for food, cooking oil, and clothing to various disabled groups in
different stations in 21 regions in Tanzania mainland (Annual report NSSF
2003/2004)
c) Fund also donated about Tshs.219 million was issued out to financing the
Construction of Mkuranga Hospital building, the donation was directly linked with
the financing of the buildings constructions and, x-ray room and diagnosis room, all
these expenses was donated by NSSF hence it’s a development on a Healthy sector in
the country.
d) Again, NSSF supported Tanzania Youth Association Trust Fund to instill more
awareness on the youth who are greatly affected by the HIV/AIDS, not only that but
the fund support the trainers to educate the society from the prevention of HIV/AIDS.
e) The fund furthermore donate amounting of about Tshs. 61 million for the
constructions of the buildings of school in the country, and pay school fees for few
numbers of students who have been selected to join with the secondary education but
their parents could not afford the expenses.
f) Also NSSF succeeded to build hostel block of Mabibo Hostel of the University of Dar
es salaam (UDSM) which accommodates many of the students arrived for their course
at the university, and hostel blocks of University of Dodoma (UDOM).
g) Furthermore, NSSF is on the progress to building Kigamboni Bridge as a means of
transport for the people who across Kigamboni, although the project is not yet started
but things are well arranged and soon the project will start.
2:11 Challenges Facing the Fund
(a) Delayed Remittance of contribution
This one among the challenge facing the fund whereby it’s a big problem, this comes
when the contributing employers delay to submit the amount to the NSSF Office

17
hence affect the fund operations, hence the fund have to take legal action or measures
against the employers who commit such an act.
(b) Competition
This has brought due to the liberalization of the social security system in the country,
these schemes are having their own laws which make them to enter into the same
nature of the market economy, this brought about stiff challenge to the NSSF, and
however competition should be there.
(c) Withdrawal
This is another big challenge which has been on discussion within the Parliamentary
House, different trade unions like TUCTA,NSSF members and other, where by it
comes when the members terminated from their previous employment or resign they
need to have their sum amount they contributed to the fund to be provided with the
withdrawal benefit but the scheme does not do so, and the country has remove such
benefit, so it is from this point where the fund receive a lot of complaints it’s a
challenge to the fund.
(d) Despite several effort made by the government to put a minimum salary to different
categories of workers some employers are still continue to pay even a little wage than
what has been stipulated in the law, consequently this has further resulted to the low
level of contributions to the fund.
(e) HIV/AIDS and Malaria
In recent years HIV/AIDS has becoming more perpetuated to the society sometime
the members of the NSSF found themselves to be affected by the disease and led to
over increasing number of the survivors who qualify for the payment of the survivor
benefits pensions, if the epidemic is not cured well very soon, a lot of the resources
will be used to pay for the survivors hence will led to the unsustainability of the fund
and gradual decline

18
CHAPTER THREE
METHODOLOGY
3:1 Introduction
Research methodology is a very significant part for a researcher to know the methodology
used to study a particular problem. It show the direct of how the researcher will conduct form
initial stage of data analysis and presentation of materials (Kothari C.R; 1990)
In this chapter researcher explores enough information to answer some of the question. This
chapter is intended to include, research design, scope of the study, study population, sample
size, method of data collection, data collection technique, data analysis and study limitation
3:2 Researchdesign
Research design is a conceptual structure within, which research is conducted, constitutes a
blue print for the collection, measurement, analysis of data. Therefore these help to facilitate
the process of undertaking the research process so that it can yield the maximum information,
with minimum expenditure in time and also money (Kothari C.R; 2000:120)
Basically there are different types of research design these include the following; exploratory
design, case study design, descriptive design and diagnostic design. Researcher was used a
case study design as a method of getting information in the working community.
3:3 Area of Study
This simply is a geographical location where the study was carried out. In that sense, the
study was conducted at National Social Security Fund (NSSF), at Dar es salaam
3:4 Study Population
Study population (target population) is concerned with one to which a researcher would like
to generalize his results (Rwegoshora 2006:114) and on the other side according to (Ahuja R;
2001:156) Target population is the one which includes all the units (persons) for which the
information is required
Therefore the target population for this study was the stuffs, subordinates and the members of
the National Social Security Fund, at Dar es Salaam.
3:5 Types of Data
The study was conducted by surveying method, through two sources of information which
are primary data and Secondary data

19
“Primary Data (source)” is the first handed information which has not been worked before.
The researcher collects information or data that have not been previously collected through
various methods such as observation.
“Secondary Data” (source) is the second handed information which have been already
worked upon by other researchers in the previous study
A researcher collects information’s or data from the library especially books, journals,
encyclopedia, NSSF Manual Guide and newspaper
Furthermore, the data was obtained through by looking the records of NSSF members in each
year from 2011/2012 and functions of NSSF in the entire society
The study used both sources of data collection which was primary data source and secondary
data source.
3:6 Sample size (sample of the study)
Sample is a position of people drawn from a larger population, it will be representative of the
population only, it has the same basic characteristics population from which it is drawn
(Ahuja R; 2001:155)
Under this study 50 respondents were selected by using simple random sampling and
purposive/judgmental sampling from a total number of a workforce
Table 3:1 categorization of the study respondents
Respondents Male Female Total
Department(mgmt.) 5 5 10
Subordinates 10 10 20
NSSF members 10 10 20
Total 25 25 50
Source: Research Findings, 2015
3:7 Sampling Technique (methods)
Sampling methods are techniques plan which drawn from the total population, be studied and
then extend the findings about the sample to the entire population (RAM, A; 2001)
Simple random sampling and purposive (judgmental) sampling technique were applied under
this study, consequently the simple random sampling (convenience sampling method) used

20
especially to the subordinates (workers) while purposive sampling used to the departments
(Management of NSSF)
3:8 Method of Data Collection
Under this study, Researcher used different methods to obtain data and information. Most of
the information was obtained through interview, questionnaire and documentary review.
3:9 Questionnaire
Questionnaires are commonly used to obtain important information about the population.
Each item in the questionnaire is developed to address a specific objectives, research
questions or hypothesis of the study. Researcher must also know how information obtained
from each questionnaire item will be analyzed (Mugenda O; 1999:71)
Researcher used both types of questionnaire that is closed questionnaires and open-ended
questionnaire. All these used to the respondents who were selected through simple random
sampling and purposive sampling. This method was very important for its ability to collect
data in large amount and also has a wider coverage. Questionnaire gives the respondents
greater freedom of expressing their various views and opinions towards a certain problem.
3:10 Interview
An interview is an oral administration of a questionnaires or an interview schedule.
Interviews are therefore face to face encounter. It is a verbal interaction between the
researcher and the respondents. Interview can either be structured or unstructured where a set
of predetermined questions were used. To obtain accurate information through interview, a
researcher needs to obtain the maximum cooperation from its respondents (Mugenda
1999:83)
In this study a researcher was opted to use unstructured interview simply because of its
advantage on flexibility, clarify and appropriateness. It is a method which is commonly used
to get deeper information and giving data to meets the study objectives
3:11 Documentation
It is a process of reviewing some written materials in different bears like in libraries. Some
information was obtained through readings books, journals, magazines and newspaper
especially the Guardian and the Citizen.
Researcher also was in position to utilize documentary review method in order to get
different information. Therefore different documents from NSSF office like annual report,

21
manual guidelines were get reviewed by a researcher to obtained the required data for the
accomplishment of the problem under study.
3:12 Data Analysis
After data has been gathered from the respondents, they were coded analyzed and presented
through the use of the simplest calculation and then be presented in the form of tables,
figures, frequency, percentage and pie charts. The level of analysis regarding the above
depended on the nature and different perspectives given to determine its validity of data
Both qualitative and quantitative methods were used in this study. Qualitative method (data)
tested by determining its validity and the relationship with some variables of the research
problem
Quantitative method (data) also was usefully critically examined by the computations, so that
to test the validity of those data with variables in determining the data collected whether there
is a relationship or if differences, if any.
3.13 Limitation of the study
During this study, a researcher encountered a problem of financial. Financial constraints
which imply that a researcher faced a critical shortage of funds, the obtained funds were not
sufficient enough to cover the required costs for data collection such as transport, photocopy,
printing, typing and binding.

22
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND DISCUSSION OF THE RESEARCH
FINDINGS
4.1 Introduction
This chapter deals with the presentation, analysis and discussion of the findings. This study
was carried out to “To find out the contributions of formal social security scheme in
promoting workers welfares in Tanzania”. A case study of NSSF, Kinondoni region, Dar es
salaam. As to present the findings obtained from the field this chapter is divided into five
sections. Section 4.1 presents the introduction on this chapter while Section 4.2 displays the
different characteristics of the respondents under study. Again section 4.3 explores the
response on the services provided by the NSSF. Furthermore section 4.4 of this chapter
present the satisfaction/ dissatisfaction of the services rendered by the NSSF and lastly
Section 4.5 shows about the problems which hinder the effective provision of the services
rendered by NSSF respectively.
4.2 Key characteristics of the respondents
The purpose of this part is to present the characteristics of the intended respondents based on
sex/gender, duration of employment (years of working experience), age, department and
education qualifications.
4.2.1 Sex of the respondents
Sex of the respondents was very vital in this research simply because it assure the gender
balance to both man and women so as to avoid bias. The findings on sex of respondents are
presented in table 4.1 below:
Table 4.1 Respondents according to their sex
Respondents Male Female Total Percent
NSSF mgt 5 5 10 20
NSSF surbdnt 10 10 20 40
NSSF members 10 10 20 40
Total 25 25 50 100
Source: Field data, 2015

23
Table 4.1 above indicated out of 50 respondents 10 (20%) were from NSSF management in
which five of them were male and another five were female, 20 (40%), Subordinates in which
ten of them were male and another ten was female, and 20 (40%) members of NSSF in which
ten was male another ten was for female. This implies that there was equal ratio between
male and their counterpart involved in this study purposely to avoid gender bias.
4.2.2 Age category of the respondents
Age category of the respondents was also very potential in study in order to know the most
reached age of the respondents. The findings are presented in table 4.3 below:
Table 4.2 Distribution of respondents according to age
Age category Frequency Percent
25 – 35 19 38
36 – 45 20 40
51 and Above 11 22
Total 50 100
Findings revealed that out of 50 respondents 19 (38%) were at age category of 25 to 35, while
respondents 20 (40%) were at age category between 36 to 45, and respondents 11 (22%) fell
at the age category of above 51years. This implies that the respondents with age category
between 36 and 45 were reached by a researcher and were more involved in the study.
4.2.3 Education levels of the respondents
This part was very potential so as to measures if the respondents under the study have enough
understanding, educated to be involved in the discussion under study. The findings are

24
Table 4.3 Education levels of respondents
Education level Frequency Percent
Diploma 10 20
Degree 20 40
Postgraduate 10 20
Master & above 10 20
Total 50 100
Table 4.3 above indicated that out of 50 respondents 10 (20%) were having diploma, 20
(40%) attained degree level of education, respondents 10 (20%) attained postgraduate degree,
furthermore respondents 10 (20%) qualified above master’s degree. This implies that in
general all respondents were educated and having understanding on social security affairs but
respondents with degree level were more involved in dealing with the social security matters.
Also implies a researcher target respondents with different level of education.
4.3 Kinds of services provided by NSSF to its members
4.3.1 Services provided by NSSF
The welfares of the workers depend a lot to the scheme registered and verified to them. For
instance the National social security Fund (NSSF) members served at the extent that, every
member enjoy on the types and kinds of ingredients concerning income and other benefits
than those under the other scheme like LAPF,PPF and the alike. Under the NSSF there are
about seven benefits in terms of numbers provided to its members while others schemes has
about three or four benefits.
Under this study, a researcher aimed to pose a question in regard to gather the information, a
researcher generates questions purposefully to get information from the clients.
Based to the subordinates and NSSF members, the purpose those questions as per
questionnaire was to know exactly the kinds and types of services which normally NSSF
provide to its members. The respondents were asked to verify and justify on either are getting
financial services, non-financial services or both of them. Summary of the findings are shown
in table 4.4 below:

25
Table 4.4 Response towards the services provided by NSSF to its members
Respondents Frequency Percent
Financial service 25 50
Both financial & and non-
financial
16 32
Non-financial 9 18
Total 50 100
Source: field data, 2015
The above table 4.4 indicated that the response towards the services rendered by NSSF to
their members in order for a researcher to differentiate them from that provided by other
incentive schemes
Financial services
Majority of the respondents about 25 (50%) from the targeted group stated that financial
services as the major services rendered by the NSSF to its members. This implies that
whatever many services are provided by the NSSF (National Social Security Fund) to its
members, financial services is high considered.
Both financial and non-financial services
Under this study, specifically to this aspect respondents 16 (32% of the targeted respondents
declared that NSSF provide both financial and non-financial services to its members.
Something which implies that may be there is a chance of choice according to the will
between the parties or circumstances that influence the matter. For instance instead of getting
money because of workers stoppage of work such man can receive a plot of land a complete
building house of the same amount he/she would get.
Non-financial services
In this findings 9 (18%) of the respondents declared that the NSSF provided non-financial
services to its members. Through associate numbers of questions respondent were clarifying,
explain and commented that always NSSF help them to build houses to enables the members
to sustain their living life’s with their family, so that is non-financial services provided under
the scheme or not

26
A researcher found that the number of respondents who responded on that aspect was quit
small in terms of numbers which may implies that many of the members of NSSF consider
financial services rather than that of non-financial.
4.3.2 Other benefits members gain from NSSF
Researcher pose a question to his respondents in order to exhorts if there are any other
benefits NSSF members may enjoy/gain. The findings are shown in table in 4.5 below:
Table 4.5 Response towards other benefits under NSSF to its members
Yes 35 70
No 15 30
Total 50 100
The above table 4.5 indicated that out of 50, 35 (70%) respondents agree that there are other
benefits they enjoy from the NSSF while 15 (30%) respondents argue that there are no other
any benefits gains from the NSSF. The findings implies that majority of the respondent which
cover about 70 percent argue that there are other benefits they enjoy from NSSF apart from
long term benefit/ Pension and short term benefits NSSF members are entitled with other
services like loan through SACCOS and NSSF participate in various social development.
4.3.3 Needs for expanding the benefits/ services
Respondents were asked whether they see any need for NSSF to expanding its benefits and
services in addressing the issues related to social security. Summary of the findings are
Table 4.6 Distribution of the respondents regards to the expansion of services
Yes 45 90
No 5 10
Total 50 100

27
Source: Research finding, 2015
Findings revealed that out of 50 respondents 45 (90%) were see the need of NSSF to expand
its benefits and services while 5 (10%) do not see any need of NSSF to expand its
services/benefits. This implies that majority of the respondents argued that NSSF should
expand their benefits/services. Also this findings indicates that NSSF should extends its
coverage to the category of worker which are left out like those engaged in informal sector/
economy, and self-employed so as to boost the welfares of workers in both category.
4.4 Members satisfaction/ Dissatisfaction
4.4.1 Satisfaction on the services rendered by NSSF
A researcher pose a question as it appears on the questionnaires respectively which need a
researcher to examine if NSSF members satisfying with the services provided, through this a
researcher design and generate question given to obtain the feedback from his respondents
In this research question which appears on the questionnaires paper, a researcher intended to
know if NSSF members are satisfying with the services they normally deliver from the
regarded social security scheme. Under this research objective, respondents were asked to
explain whether they satisfy with the services they normally gain. The findings are shown in
the table 4.7 below:
Table 4.7 Response towards the satisfaction on the services rendered by NSSF
Response Frequency Percent
Yes 40 80
No 10 20
Total 50 100
Source: field data, 2015
The above table 4.7 indicated that out of 50 respondents, many members of the NSSF are
satisfying with the services provided by their scheme, since that high percentage of about
(40) 80% of the total respondents agreed with the question asked and remarked that NSSF
always provided many services to them and the mostly were provided fund in terms of money
to support the vulnerable families, street children and orphans and their working life in
general.

28
Also NSSF contributed much to the social development based on the national policy since it
support different project established within the country, for instance supports on the sports,
habitat and dwelling establishment. Due to number of evidence from NSSF members and
official workers. This verifies that NSSF stakeholders are satisfying with the services
rendered to them.
Another group of respondents representing (10) 20% of the total did not agree with the point
of satisfaction based services based by the NSSF, since that time schedule is monopolized. So
it is very embarrassing by the time a required person demand to get his/her benefits. It takes
more than six months to be served or even sometime goes beyond that.
This findings show s that, the degree of satisfaction based on the services rendered by NSSF
to its members it’s highly appreciable to the majority of respondents.
4.4.2 Benefits presented at the right time
The study intended to find out whether if the NSSF members received their benefits at the
right time. The summary of the findings are shown in figure 4.1 below:
Figure 4.1 Distribution of respondent towards right time to acquire their benefits
Source; Field data, 2015
25(50%)
25(50%)
Response
Yes
No

29
The above findings revealed that out of 50 respondents 25 (50%) argue that their benefits are
presented at the right time while 25 (50%) do not agree with the question. This implies that
still there is a dilemma because its half/ half which means that sometime NSSF may present
the benefits to its member at the right time soon after 6 months but again after some time it
may implies to be complicated and goes beyond six months due to poor financial records of
an employee and the alike.
4.4.3 Researchon improvement of services provided by NSSF
Information obtained from NSSF officials during interviews revealed that a number of
different research study has been conducted by the department of research in each year,
majority of the officials revealed that such investigation may then use in the establishing of a
new policies, also the research to determine their success, failure or threats in the social
security market competition from other provident fund. Also these researches help them to
improve their general services to its member so as to promote the welfares of the workers.
4.5 Problems which hinder the effective provision of services by the NSSF
4.5.1 Problems experienced
As per specific objective, a researcher intended to know what are the obstacles which hinder
the effective provision of the services, and a researcher gives the respondents rooms to
explain what’s is in their mind in regard to such objective. In verifying the validity of this
research objective, the issues and question were presented to the respondents, and part one of
the question were directed to the NSSF management, as well as its workers and the second
part were directed to the NSSF members. The findings are presented in figure 4.2 below:

30
Figure 4.2 Distribution of respondents towards problems which hinder NSSF
The above figure 4.2 revealed that the assessment made on the problems which hinder the
effective provision of NSSF services, the study revealed on the figure 4.2 above, most of the
respondents explain about the problems in collection of contribution from NSSF members.
Most of the respondents especially management and workers employed by NSSF
representing 50 of all targeted respondents in the study in general respondents 40 (80%)
argued that there is a lot of problems in effective provision of NSSF services due to the
numbers of associates problems in collection of contribution from members, and 10 (20%)
says that there is no problems which hinder an effective provision of NSSF to services to its
members. The study revealed that a very serious problems is experienced by NSSF arises
during collection of contribution of the retired workers from their employers who normally
fails to keep right and accurate records for their employee.
However since employers fails to display financial information concerning the deduction of
employees, in collecting the contribution also tends to be difficult.
4.5.2 Progressive effort to combat problems facing the Fund
The study intended to find out whether there is any serious effort made to combat such
problems which hinder the effective provision of NSSF services to its member. The findings
are shown in table 4.8 below:
40(80%)
10(20%)
RESPONSE
Yes
No

31
Table 4.8 Distribution of respondents on effort to combat problems
Response Frequency Percent
Yes 30 60
No 20 40
Total 50 100
Source: Research findings, 2015
The above findings revealed that out of 50 respondents 30 (60%) which mark the high
response argued that there is serious progressive measures which have been taken by the
NSSF to combat problems facing the fund .While 20 (40%) which represent the lowest
percent did agree with the question. This implies that the high response from the respondents
which make a total of 60% agree with a question which means that NSSF is gradually work
on the problems facing their funds so as to offer the good quality of services to its members
and general to the development and promotions of workers welfares.
4.5.3 Withdrawal of members
Respondents were also interviewed on how far and to what extent does the withdrawal of
members affect the fund in general. Most of the NSSF officials including top senior
management and NSSF subordinates and few of the NSSF members were interviewed and
get in touch with the discussion in which most of them argued that withdrawal of members
affect their fund in annual planning project and investment, so when it comes a member is
terminated from the employment it may disturb the annual budget, also the findings revealed
that the employee could be affected on other hand and lost benefits from long term pension
like old age pension, invalidity pension/benefits and survivors pension. This implies that the
withdrawal of members is a serious problem to the funds and the welfares of workers in
general.

32
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter is divided into three sections, the first section gives summaries of the report
content, and second section provides the author conclusive comments about the research
findings and the third one provide policy and recommendation for improvement and
promotion of workers welfares
5.2 Summary
In this research the researcher, has been dealing with the research study that involved the
welfares of workers which provided by NSSF. The researcher intended to analyze the
contributions of formal social security scheme in promoting workers welfares in Tanzania, A
case study of NSSF specifically at Kinondoni Region in Dar es salaam.

33
The study further aimed in assessing the welfares of the members of NSSF.
The research topic covered by three major areas which were NSSF management, its
subordinates workers and member from NSSF who receive benefits from NSSF.
Researcher was guided by three specific research objectives in this study as shown earlier in
chapter one
A research to be conducted successfully, proper method for collecting, analyzing data must
be applied. In this study researcher uses questionnaires as method for gathering primary data
and annual report, magazine and library document for collecting secondary data.
The first research objective based on the subordinates and customers, the purpose of this
research objective was actually to know the types of services which normally NSSF provides
to its members. The study showed that there are several types of services which provided by
NSSF to its members such as maternity benefits, employment injury, invalid benefits,
survival benefits, old age benefit and retirement.
The second research objective was to help to examine if NSSF members satisfying with the
services provided, in this research objective, a researcher generates numbers of questions in
the questionnaires and the respondents were asked to explain whether they satisfied with the
services which they are normally gain.
The last research objective was all about the problems which hinder the effective provisions
of NSSF services, in this research objective, the study revealed that most complaints is on the
collection of the members contributions from their employers, poor financial record keeping
of the employers, and members contribution are not presented at the right time because the
employers don’t prepare their benefit and check at arranged time hence disturb contribution
process.
5.3 Conclusion
The findings showed that the majority of respondents specifically members from NSSF as an
institution, were by most of the respondents agreed that NSSF provides better services which
made satisfaction to their members, for the maximum of maintaining their life during their
working period and their future life after retirement.

34
However the study revealed that, the members from NSSF showed positive and negative
response that some of them satisfied with the services provided by NSSF and others not
satisfied due to the reason that were getting disturbance during follow up of their benefits.
The findings show that, there was a suggestion given by numbers of respondents on how
NSSF should improves their services to their members. The suggestion based on NSSF to
increase more employees and their services to be more updated to time change, and
modernization of facilities such as computer and having an effective data base. Also NSSF
should improve their fundamental policies of fund by reducing time of payment after
dismissal and retirement.
5.4 Recommendations
Recommendation given to the NSSF members, government and NSSF management to
promotes workers welfares in Tanzania.
5.4.1 Recommendation to the NSSF members
It is recommended that, members from NSSF should be in a position to create their
associations, operatives union to focus their will and interest, Also the members from NSSF
should initiate income project and seek assistance from government and other financial
institutions, Also members from NSSF should be in a position to influence their employers
and to make policies which provide special program for promotion and development
members.
5.4.2 Recommendation to the Government
Government should establish specific measures to alleviate poverty in general with specific
attention to their members, as government should be acting as a role model, Again
government should gradually implement effective employment policy which will protect
members from NSSF and helps them to get the sources of income out of their retirement
benefits, for instance offering their members some of the priorities in private sector like
farming, business and the alike.
5.4.3 Recommendation to the NSSF management
It is advised that NSSF management to continue in assisting in developing of alternative
services to its members and give facilities on credit to subordinate and other members, Also
NSSF management should increase the rate of benefit to their members, so as to meet the

35
level of living and wage per months, Again NSSF management should review their operating
policies of fund by giving more priorities of profit to their members.
REFERENCES
Ahuja.R. (2001), Research method, Rawat Publication New Delhi.
Citizens, 26 July, 2012, Reports on Social Security.
ILO (1984), Introduction to Social Security, ILO,Geneva.
ILO (1996), The cost of Social Security, Geneva.
Ishengoma.A.K, (1995) The capacity of Social Security System. Southern Africa.
Jacques, J.D (2007), Social Security, What can develop from Developed Countries,
Washington.
Johannes. J. (1999), Strengthen Social Security Systems of Rural Areas of Developing
Countries.
Kapuya.A.J. (2003), The National Social Security Policy, Tanzania.
Kaushik R.S (1999) “The Future Direction of Provident Funds, Sixteenth meeting of the
committee, Manila.
Kothari, C. (1992), Research Methodology, Skills and Techniques K. K. Gupta, New Delhi.
Kothari, C.R (1990), Research Methodology, 2nd Edition, New Delhi, India.
Mallya.W.J (1994), The role of NGO’s in providing social welfares and security for women,
Tanzania.
Michael.D.T (2004), Social Security and its Discontents perspectives on choice, Washington.

36
Mugenda. O. (1999), Research Methods, Qualitative and Quantitative Approach, Press
Nairobi, Kenya.
Maghimbi et al (2002), Social Security System in Tanzania, University of Dar es salaam.
NSSF (2013), NSSF Operations Guide, Issue No.4, 2013.
NSSF (2011/2012), Annual report of NSSF.
NSSF (2003/2004), Annual Report of NSSF.
NSSF (2001), “The extensions of Social Security Protection to the Informal Sector”.
NSSF (2001), Guide Together we build your Future, Issue No.4, 2001.
National Social Security Policy (NSSP), 2003, Government Print, Dar es Salaam
National Employment Policy (2008), Government Print, Dar es salaam, Tanzania.
Rwegoshora.H. (2006), Social Science Research.
Sylvester. J. (1999), The Real Deal, the History and Future of Social Security, Yale
University.
Social Security Regulatory Authority (2011/2012), Annual Report, SSRA.
The Guardian, 24th ,July 2012, Social security Dilemma.

37
APPENDIX “A”
Questionnaire to be administered by Employers (NSSF Management) and
Surbordinates
I Gerald Josephat a student at the Institute of Social Work, Dar es Salaam. As a third year
I’m conducting a research based on the “CONTRIBUTIONS OF FORMAL SOCIAL
SECURITY SCHEME IN PROMOTING WORKERS WELFARE” A case study of
NSSF,DAR ES SALAAM
Kindly, would you please fill the empty space provided below through answering these
questionnaires. Also put a tick for a relevant answer.
All information will be kept strictly confidential and used only for the academic purpose
(research)
Section A: Personal Particulars
1. Sex (i) Male ( )
(ii) Female ( )
2. Age
a) 25-35 ( )
b) 36-45 ( )

38
c) 46-50 ( )
d) 51 and above ( )
3. Your position/Title…………………….
4. Education Qualifications
a) Secondary ( )
b) Certificate ( )
c) Diploma ( )
d) Degree ( )
e) Postgraduate degree/diploma ( )
f) Other (specify)…………………………………………
5. Duration of Employment………………………………………..
Section B: Services provided by NSSF
6.What are the benefits provided by
NSSF?…………………………………………………………………………………………
(a) Financial……………………
(b) Non-financial……………….
(c) Both financial and Financial………………….
7.What are the other benefits members may enjoy/ gain from NSSF?
Explain..........................................................................................................................................
......................................................................................................................................................
..........................................................................
8. As a manager/Personell do you see the need of expanding the benefits to the members?
(a) Yes ( )
(b) No ( )

39
If “Yes’’( Explain which benefits should be expanded/ added to the
scheme)…………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
……………
If “No” (Why)
Explain…………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
……………
Section C: Members satisfication/ Disastification
9. Are the members satisfied with the benefits offered by NSSF?
(a) No ( )
(b) Yes ( )
If “No”(Why).
Explain…………………………………………………………………………………………
…………………………………………………………………………………………………
……
10. Are the benefits provided to the NSSF members at the right time? If No/Yes. Give
reasons…………………………………………………………………………………………
…………………………………………………………………………………………………
…………
11.What are the frequently received complaints from the NSSF
members?.....................................
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………

40
Section D: Problems hindered the effective provision of NSSF benefits
12. What are the associated problems facing the effective provision of NSSF benefits to its
member?
(a) External factors……………………..............................................................................
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
(b) Internal
factors…………………………………………………………...................................
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
13. Is there any progressive effort made by the NSSF fund to overcome such problems?
(a) No ( )
(b) Yes ( )
If Yes/No,
Explain…………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
……………
14. How far does the withdrawal of members affect the Fund operations?
Explain…………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………

41
“THANK YOU FOR COOPERATION”
APPENDIX “B”
Questionnaire to be administered by NSSF Beneficiary (NSSF Members)
I Gerald Josephat, a student at the Institute of Social Work, Dar es Salaam. As a third year
I’m conducting a research based on the “CONTRIBUTIONS OF FORMAL SOCIAL
SECURITY SCHEME IN PROMOTING WORKERS WELFARE” A case study of
NSSF,DAR ES SALAAM
Kindly, would you please fill the empty space provided below through answering these
questionnaires. Also put a tick for a relevant answer.
All information will be kept strictly confidential and used only for the academic purpose
(research)
Section A: Personal Particulars
1. Sex (i) Male ( )
(ii) Female ( )
2. Age
e) 25-35 ( )
f) 36-45 ( )
g) 46-50 ( )
h) 51 and above ( )
3. Your position/Title…………………….
4. Education Qualifications
g) Secondary ( )

42
h) Certificate ( )
i) Diploma ( )
j) Degree ( )
k) Postgraduate degree/diploma ( )
l) Other (specify)…………………………………………
5. Duration of Employment………………………………………..
Section B: Services provided by NSSF
6. Do the services from NSSF given to you at the right time?
(a) Yes
(b) No
If “No” (Why).
Explain…………………………………………………………………………………………
…………………………………………………………………………………………………
……
7. What are the specific benefits/services you gain from NSSF?
(a)Financial benefits.(Explain/ mention them……………………….................................
(b) Non-financial,(Mention them………………………....................................................
8. Does the services provided by NSSF full of adequate or inadequate?
(a) Yes
(b) No
If“No”(Why).Give
reasons………………………………………………………………………
Section C: Members satisfication/ Disastification
9. Are you satisfied with the benefits/ services offered by NSSF?
(a) No

43
(b) Yes
If “No” (Why). Give reasons for
disastifications…………………………………………………………………………………
…………………………………………………………………………………………………
10. Are the benefits provided to you at the right time?
(a) Yes
(b) No
If “No” (Why)………………………………………………………………………………….
11. Does NSSF conducted any research in regard to the improvement of the services to the
NSSF members?
(a) No
(b) Yes
If “ Yes”( In what
field)……………………………………………………………………………………………
…………………………………………………………………………………………………
……
Section D: Problems hindered the effective provision of NSSF benefits
12. Are there any problems hindered the sustainability of your organization?
(a) Yes
(b) No
If “Yes” (What are they).
Explain…………………………………………………………………………………………
…………………………………………………………………………………………………
13. Are there any strategic plan made to combat the problems faced your organization
(NSSF)?

44
(a) No
(b) Yes
If “Yes”( Explain
them)……………………………………………………………………………………………
…………………………………………………………………………………………………
14. Does the competition from other social security scheme affect NSSF?
(a) No
(b) Yes
If “Yes” ( To what extent). Give reasons……………………………………………...............
…………………………………………………………………………………………………
…………………………………………………………………………………………………
“THANK YOU FOR COOPERATION”

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