NSSF Reforms End-of-Service Pay and Family Allowances
NSSF head Mohammad Karaki unveils major reforms for compensation and social benefits. ©Al-Markazia

The National Social Security Fund (NSSF) has introduced major reforms, particularly in the calculation of end-of-service benefits and the distribution of family allowances.

In a statement released on July 8, NSSF Director General Mohammad Karaki announced two official memos, which were part of a broader institutional reform plan. The measures span three main branches: health and maternity insurance, family benefits, and end-of-service indemnities.

Fairer Calculation for End-of-Service Compensation
Memo No. 795 outlines a significant shift in how compensation is calculated for the heirs of a deceased insured person who had served for at least six years. The previous cap on compensation has been lifted, and beneficiaries will now receive the more advantageous of two formulas: either the amount based on actual years of service or a lump sum equal to six times the last monthly salary, regardless of the length of service.

This ensures better financial protection for families, even in the case of shorter careers. Payment can be triggered at the request of any one of the eligible beneficiaries.

Equal Rules for Family Allowances
Memo No. 794 introduces a unified legal deadline for submitting family allowance claims across both public and private sectors. It aims to ensure equal treatment for all insured workers, regardless of their employment type.

The NSSF says this alignment will improve the administration of contributions and entitlements while ensuring more transparent and responsible use of public funds.

In its statement, the NSSF affirmed its commitment to restoring public trust in its national role through these reforms.

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