Oil workers take Labour Ministry to Court over NSIF directive — Eye Radio
Juba, September 14, 2026 – Oil workers have petitioned the Court of Appeal over a government directive requiring employers to deduct and remit social insurance contributions directly to the National Social Insurance Fund, NSIF.
The petition was filed by workers’ unions representing employees at Dar Petroleum Operating Company, Greater Pioneer Operating Company and Sudd Petroleum Operating Company.
The unions are challenging the implementation of Public Circular No. 5 of 2026, issued by the Ministry of Labour in April. The circular revoked a 2010 arrangement that allowed employers to retain and manage workers’ social insurance contributions and directed all employers to remit both employee and employer contributions to the NSIF on a monthly basis.
Speaking to journalists in Juba on Monday, 14 September 2026, workers’ representative Victor Vojoki Caesar Zemangi said the unions first sought to resolve their concerns through dialogue with the Ministry of Labour.
“We have formally petitioned the Court of Appeal regarding the implementation of the Minister of Labour Public Circular No. 5, 2026. From the onset, the Union and Society have sought an amicable and constructive resolution to the issue arising from the Circular,” Victor Vojoki explained.
Zemangi said the unions engaged the ministry through what he described as the appropriate channels, but received no response. He said the decision to seek judicial intervention is intended to protect workers’ rights and ensure that the implementation of the social insurance system complies with the law.
“Our resort to the court should not be misconstrued as opposition to social protection or to the establishment of effective social insurance systems in the country,” he said.
The workers say they support the establishment of a sustainable social insurance system, including retirement, disability and survivors’ benefits. However, they argue that contributions deducted from workers’ salaries require proper legal safeguards, transparency, accountability and institutional credibility.
Dispute over NSIF implementation
The court case follows months of disagreement between workers’ unions, the Ministry of Labour and the National Social Insurance Fund over how the social insurance scheme is being implemented. In April, the Ministry of Labour directed employers, including private and oil companies, NGOs, UN agencies and diplomatic missions, to begin remitting contributions directly to the NSIF.
The ministry said the directive was based on the National Social Insurance Fund Act, 2023, following the establishment and operationalization of the Fund earlier this year.
But workers’ unions soon questioned whether the Fund and its governance structures were sufficiently prepared to receive and manage the contributions.
In June, oil workers’ unions called for the suspension of the enforcement mechanism, arguing that several provisions of the 2023 NSIF Act had not been fully complied with.
They also raised concerns over the establishment of the Board of Trustees, executive management, regulations, financial controls, registration systems and broader stakeholder consultation.
The concerns later widened beyond the oil sector.
In July, unions representing employees in oil companies, NGOs, private businesses and diplomatic missions jointly called for the suspension of the NSIF rollout, arguing that the implementation lacked sufficient consultation, transparency and governance safeguards.
The workers maintained that they were not opposed to social insurance itself, but to what they described as the manner in which the scheme was being operationalized.
The unions also questioned the legitimacy of some representation on the NSIF Board and demanded greater participation by workers and employers in decisions affecting their contributions.
The Ministry of Labour, however, has defended the implementation of the scheme, maintaining that its role is to provide the policy and regulatory framework for social protection while the NSIF handles the administration of social insurance benefits.
The NSIF has also defended its establishment and operations, saying it is working through legally established structures, including a Board of Trustees and management. It has announced plans for wider engagement with employers, workers, unions and other stakeholders.
The Fund has since approved several policies and regulations and insisted to proceed with the implementation of Public Circular No. 5 of 2026.
The latest legal challenge now places the dispute before the Court of Appeal.
Zemangi says the unions will respect the judicial process and allow the court to determine whether the Labour Ministry’s circular complies with the Constitution and applicable laws.
Neither the Ministry of Labour nor the National Social Insurance Fund has publicly commented on the latest petition.