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National Social Security Authority (NSSA) would like to advise that the Honourable Minister of Public Service, Labour and Social Welfare has approved the following increases in benefits and insurable earnings with effect from 1 July 2007.
PENSION AND OTHER BENEFITS SCHEME (National Pension Scheme)
Monthly Pensions and Grants
The pensions in payment in relation to the following benefits have been increased:
Minimum Retirement Pension will be increased from $12 900.00 per month to
$250 000.00 per month.
Minimum Invalidity Pension will be increased from $5 700.00 per month to
$110 000.00 per month.
Minimum Survivors Pension will be increased from $5 700.00 per month to
$110 000.00 per month.
All monthly pensions in payment above minimum will be increased by 1 148%.
Minimum Retirement grant will be $250 000.00
Minimum Survivors grant will be $110 000.00
Minimum Invalidity grant will be $110 000.00
Funeral Grant
The Funeral Grant will be increased from $65 000.00 to $1 000 000.00
Insurable Earnings Ceiling:
In order to fund the increased benefits, the Insurable Earnings Ceiling will be increased from $130 000.00 per month to $2 000 000.00 per month. The effect of the Insurable Earnings Ceiling is that both employer and employee’s monthly contributions are limited to a maximum deduction of 6% of $2 000 000.00, that is $120 000.00 for contributions payable in respect of each employee (i.e. $60 000.00 employee deduction from salary which is 3% of $2 000 000.00 plus employer’s corresponding $60 000.00 matching the employee deduction). This disregards any earnings in excess of $2 000 000.00 per month.
For employees earning below $2 000 000.00, their contribution payable is based on 3% of actual amount one is earning (e.g. an employee earning $1 000 000.00 per month, the total contribution payable will be $60 000.00 per month (i.e. $30 000.00 employee deduction from salary plus employer’s corresponding $30 000.00 matching the employee deduction).
Christmas Bonus
Depending on the performance of the Scheme, a Christmas Bonus equal to the minimum monthly Retirement Pension ($250 000.00) may be paid to all pensioners by the end December 2007.
ACCIDENT PREVENTION AND WORKERS’ COMPENSATION SCHEME (WCIF)
Monthly Pensions:
The new minimum pension effective 1 July 2007 will be $62 000.00 from the current $6 050.00.
The constant attendance allowance will be to $49 600.00 per month from $2 000 per month.
All monthly pensions in payment above the minimum will be increased by 400% with effect from 1 July 2007.
Funeral Grant
The Funeral Grant will be increased from $65 000.00 to $1 000 000.00 with effect from 1 July 2007
Insurable Earnings Ceiling:
The Insurable Earnings ceiling including allowances, overtime and bonuses will be $2 000 000.00 per month per employee up from the current $130 000.00 per month per employee. Employers should continue to apply the assessment rates as contained in Statutory Instrument 214 of 2006.
Christmas Bonus:
Depending on the performance of the Scheme, a Christmas Bonus equal to the minimum monthly Injured worker’s Pension of $62 000.00 may be paid to all pensioners by the end of December 2007.
For more information or clarification, please contact your nearest NSSA Offices, or any of the following:
Assistant General Manager Operations – kuodzas@nssa.org.zw
Assistant General Manager Benefits – hchikova@yahoo.com
Telephone: 04 – 723822/4; Fax: 04 – 796320
(NSSA Toll Free Line – 08004150)
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