Demystifying the NSSA Accident Prevention and Workers Compensation (APWC) Scheme?

What is the Accident Prevention and Workers Compensation Scheme?

The Accident Prevention and Workers’ Compensation Scheme (APWCS), formerly referred to as Workers’ Compensation Insurance Fund (WCIF) is a Social Security Scheme, whose main objective is to prevent accidents at the workplaces and to compensate workers who get injured or die in work-related accidents or contract work-related diseases.

How is the APWCS funded?

The scheme is fully funded by employers, Employees do not contribute to the scheme. Employers who are exempted from contributing to the scheme are:
i. The Government
ii. Employers of domestic worker and.
iii. The informal Sector.

The minimum insurance premium the employer is required to pay will be calculated using a risk factor depending on the type of industry the employer is involved in. The Insurance year runs from January 1st to December 31st every year.

What are the rates for NSSA APWCS.

Businesses are classified according to industries and each industry is allocated an industrial code (IC), which is the Sixth Schedule to Statutory Instrument 68 of 1990, e.g., Farming is classified under Code 0110. Each Industrial classification is allocated an insurance rate based on risk analysis. The rates are regularly reviewed and gazetted into law each year, see Appendix 1A for rates applicable in 2009 gazetted under Statutory Instrument 161 of 2007. Employers are encouraged to check with NSSA or Government Printers (Printflow) for new rates at the end of each year.