Employers who fail to submit employee health insurance contributions on time will now face a monthly penalty, according to a warning issued by the Social Health Authority (SHA).
The authority announced that employers registered under the Social Health Insurance Act, 2023, are required to comply with their legal obligation of registering employees, making deductions, and remitting Social Health Insurance Fund (SHIF) contributions within the required timelines.
SHA stated that any employer who delays payments will be charged a penalty equivalent to 2 per cent of the outstanding contribution for every month the amount remains unpaid.
The penalty is provided for under Section 27(6) of the Social Health Insurance Act, 2023, which empowers SHA to enforce compliance among employers and ensure timely remittance of employee health contributions.
Employers are required to deduct SHIF contributions from employees' salaries every month and submit the funds to SHA-designated accounts by the 9th day of the following month. Any failure to meet this deadline will result in additional charges on the unpaid amount.
The enforcement comes as SHA continues efforts to transition fully from the former National Health Insurance Fund (NHIF) system following the implementation of the Social Health Insurance Act, which came into effect on November 22, 2023.
The new framework replaced the NHIF Act and introduced new healthcare financing structures, including the Social Health Insurance Fund (SHIF), the Primary Healthcare Fund (PHF), and a fund dedicated to emergency, chronic, and critical illness coverage.
By October 2024, NHIF registrations were discontinued, with all statutory health insurance contributions being processed through SHA.
Employers who have not completed registration are required to sign up through the official SHA Employer Portal and obtain an Employer SHA Number.
They are also required to register their employees and eligible dependants, including spouses and children, while ensuring monthly deductions of 2.75 per cent of an employee's gross salary are submitted as required.
In addition, employers must ensure their employees and eligible dependants are registered under the Biometric Health Identification (BHI) system. The biometric system uses fingerprint verification to replace traditional One-Time Password (OTP) authentication, helping prevent healthcare fraud, confirm patient identities, and support approval of medical services at healthcare facilities.
SHA has urged all employers to comply with the regulations to avoid penalties and ensure employees continue accessing healthcare services without disruptions.