Minister for education and vocation Training Dr Shukuru Kawambwa
Private higher learning institutions are twisting country’s labour laws, a move that enables them to evade taxes and not pay pension funds for their employees.
A survey conducted by The Guardian on Sunday has established that the institutions’ managements purposely refuse to provide contracts to their employees.
Some employees who spoke to reporters said that they were working in the institutions without contracts and if they ask for one, risk losing their jobs.
So far institutions in question include the Kampala International University (KIU), the Royal College of Tanzania (RCT) and Dar es Salaam City College (DACICO).
An impeccable source from one of the institutions told this newspaper yesterday that they have been working without contracts and therefore they are being denied their social security funds, leave benefits and health care assurance.
Their employers have been paying them cash-on-hand monies without salary slips, they explained.
“We feel mistreated and humiliated as employees, while the government loses income as no pay-as-you-earn is paid,” he stated.
A reliable source from KIU said that only 10 percent of the 170 employed academic staff at the institution have contributions to pension funds, while non-academic staff have no benefits at all.
“We are being paid monthly salary through cash-on-hand. This makes them evade paying tax to the government. On that, pension fund is being deducted, but pay as you earn is not,” said the source.
One of the tutors at RCT who sought anonymity explained that though they were having contracts and P.A.Y.E was being deducted. Their pension fund was however not being deducted from their salaries.
“I have seen my contract, it has pension benefits. But worse is the fact that we also contribute two percent of our salaries for the Researchers Academicians & Allied Workers Union (RAAWU) , but the contribution had never been submitted to RAAWU,” he stated.
Employees at RCT are registered with PPF since 2012, but the source said there had not been any deduction from their salaries of any fund for a long time.
The survey revealed that the last time RCT contributed to NSSF pension for its workers was in 2007.
When called through his mobile phone, the RCT Director, Julius Chami picked his phone, but couldn’t speak to the reporter.
When contacted for comment, the PPF Director of Operations, Asunta Maina said it was mandatory for employers and employees to contribute 5percent from employees and 15 percent from the employer or 10 percent of salary from both employees and employer.
She however said it was difficult for to confirm whether RCT was paying contributions or not because she was out of the office.
For his part, the NSSF Kinondoni Zone Chief Manager, Ally Nchula revealed that the last time RCT paid contributions of its workers was in 2007.
He however promised to cross check with other staff especially those who inspect from Kimara to Kibamba to work on the matter, saying once it is revealed that RCT has been evading paying contribution, legal measures will be taken against the management.
Mwanahamisi Kasira, who used to be on the staff at DACICO, told this paper that she was expelled from work after demanding her two months’ unpaid salaries.
“The bad thing is that I had no contract and the majority of the workers do not have contracts too. And if you dare insist on contracts you risk losing your employment,” she said.
She said she had not received her June and July salaries and when demanded, the DACICO principal, Vedasto Malima told her to write an apology letter and leave the office as directed by the director of the college, Idrisa Mziray.
When called for clarification, Mziray said they suspended her because of some theft cases that had happened in the office.
“We didn’t fire her. We only told her to go home to give us room for investigation to know exactly who stole the money. We in fact suspended two workers who were working in that office,” said Mziray.
However, Mziray declined to respond on matters of pension funds, but only said his entire employees have working contracts, a fact that has been refuted by many of the staff.
For his part, TRA Director of Education and Taxpayer Services, Richard Kayombo said that TRA will direct their regional managers to cross check whether such institutions are evading taxes, and if they are found appropriate measures will be taken against them.
Mid last month this newspaper published an article titled ‘Uganda varsity maltreats us, say local workers’ whereby officials said the government would scrutinise terms and conditions of staff at KIU, its Dar es Salaam constituent college, to check reported discrimination against local employees.
It was reportedly that KIU ignores Tanzania labour laws, mistreating Tanzanians by forcing them to work for long periods without employment contracts, social security contributions and payment without salary slips in a bid to evade taxes. They also have no health facility, leave benefits or accommodation, all available for Ugandans and some few other foreigners.
SOURCE: GUARDIAN ON SUNDAY
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