The Social Health Authority (SHA) has warned employers that late remittance of employee health contributions will attract a monthly penalty of two percent.
The agency issued the compliance directive on Wednesday, July 29, stepping up enforcement under the Social Health Insurance Act of 2023.
“SHA reminds all employers registered under the Social Health Insurance Act, 2023 and the Social Health Insurance Regulations, 2024 of their statutory obligation to register employees and deduct and remit Social Health Insurance Fund (SHIF) contributions,” SHA stated.
“Failure to remit contributions within the prescribed period attracts a penalty of 2 per cent of the outstanding contribution for every month the contribution remains unpaid, in accordance with Section 27(6) of the Social Health Insurance Act, 2023.”
The statutory notice mandates every employer to deduct and remit SHIF contributions monthly by the 9th day of the subsequent month. Any delay past this deadline will immediately trigger the compounding two percent penalty on all unremitted amounts.
This regulatory framework rests on the Social Health Insurance Act, which took effect on November 22, 2023, completely repealing the former National Health Insurance Fund (NHIF) Act. Subsequent regulations in March 2024 created the Primary Healthcare Fund, SHIF, and an Emergency, Chronic, and Critical Illness Fund.
Since October 2024, the state officially phased out all legacy NHIF registrations, channeling all statutory health contributions through SHA.
SHA urges unregistered employers to sign up via the official Employer Portal to secure an Employer SHA Number. Employers must onboard their workforce alongside eligible dependents, including spouses and children, and deduct 2.75 percent of each worker’s gross monthly earnings.
Additionally, employers must register workers on the Biometric Health Identification system. The fingerprint-based system replaces traditional one-time passwords to curb healthcare fraud, verify patient identities, and authorize hospital services.
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