NSSA-NPS

Saturday 19th of July 2008

What is NPS?

The Pension and Other Benefits Scheme is based on a 50/50 contribution from the employers and employees. The workers are entitled to a number of benefits after contributions for a minimum set period and having met the qualifying condition of each of the benefits. It provides an important cushion for Zimbabwean citizens during invalidity, retirement or death of a breadwinner who was a member of the scheme. It is the noble duty of the employers and employees to ensure that contributions are paid to NSSA.

Who is the Scheme for?

The Pension and Other Benefits Scheme is for every working Zimbabwean above the age of 16 years and under the age of 65 years who is in permanent employment, seasonal, contract or temporary employment. This does not include domestic workers and the informal sector who are expected to join at a later stage. And because it is a national scheme it is a compulsory requirement by law for all Zimbabwean workers who meet these criteria to become members and contribute towards it. Upon joining, every registered employer is issued with a social security registration number and every registered employee is issued with a social security number for life.

What If I Change My Business ?

Employers have a responsibility to keep NSSA informed of any changes or developments in their business. This will allow the Authority to keep constant accurate records and also make it possible for the Authority to adjust their insurance premiums and records accordingly, in line with any changes as and when they occur.

How Is The Scheme Funded?

The Pension and Other Benefits Scheme is financed from equal monthly contributions from the employer and employee.
It is an employer's obligation to ensure that correct deductions are made on employee's salaries or wages and are submitted timeously to NSSA. The contribution rate under the National Pension Scheme (NPS) is:

3% by employee
3% by employer
A total 6% is to be paid to the nearest regional office on or before the 10th of each month.

N.B. The maximum insurable earnings currently stand at $2,000,000.00.

Benefits Offered By the Scheme

The Pension and Other Benefits Scheme offers four main types of benefits and they are as follows:

Retirement Benefit
Invalidity Benefit
Survivors Benefit
Funeral Grant

N. B. Please note that these benefits are payable either in the form of a grant which is a one off payment or a pension paid on a monthly basis in arrears.

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