By Chiedza Muswe
Contribution rates for maximum pensionable salaries have been reviewed effective 1 June, 2020 the National Social Security Authority (NSSA) has revealed.
In a notice to employees, NSSA highlighted the new rates which employees will be contributing towards their pensions.
“Following the gazetting of Statutory Instrument (SI) 108 and 109 of 2020 on 15 May 2020 pertaining to a review of NSSA contribution rates and maximum pensionable salary, the Authority wishes to advise employers that these will be effective from 1 June 2020 as follows.
“The contribution rate of a maximum pensionable salary currently being at 7% which is ZWL700 which is effective on 1 June 2020 will be at 9% being ZWL5000. The contribution rate is split equally between employer and employee, which means it has gone up by 1.5% points for each from 3.5% to 4.5%,” read the statement.
NSSA further indicated that as a result of Covid19 pandemic they would be implementing the reforms in June and not January as they had planned.
“Considering the effects of the Covid19 pandemic and in the interest of protecting jobs and enabling industries to thrive, implementation of the reforms will be with effect from 1 June 2020 instead of 1 January 2020,” they said.
The notice gave out measures being taken to cater for the grossly disabled pensioners.
“The Accident Prevention and Workers Compensation Scheme (APWCS) now caters for additional assistance to grossly disabled pensioners. Where a grossly disabled worker who is above 70 per centum disabled does not have adequate accommodation, the General Manager may provide rural dwellings for such a worker and such dwellings shall be in a form and condition as determined by the General Manager from time to time,” read the statement.
The review was based on independent actuarial valuation, which advised that the scheme could neither pay better benefits to its members nor remain sustainable without reviewing the contribution rate and pensionable salary.
Statutory Instrument (SI) 108 of 2020 was published in the Government Gazette on Friday by the Minister of Public Service, Labour and Social Welfare, Professor Paul Mavima.
