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Zimbabwe: NSSA Insurable Earnings

In June 2021, National Social Security Authority (NSSA) published a Notice on SI 169 of 2021, in which they announce the change in the Insurable Earning ceiling from ZW$5 000 to the value determined by the Poverty datum line (PDL). Customers are required to input the insurable earning ceiling value every month. 

Take note of the calculation for employees who fall in the category described in paragraph 4, quoted below:

  1. Under-Declaration of contributions [SI 393/93 Section 12]

Section 12 (1) provides that, “Where the basic salary is below the maximum insurable earnings threshold, but allowances and other benefits exceed the basic salary by 100%, the allowances and benefits shall be grossed up and deemed to be the salary for purposes of establishing the insurable earning.”

Currently                       

NPS Contribution is based on the insurable earnings subject to the prevailing monthly ceiling. Insurable earnings are the basic salary.

 

Change 

Change the insurable earnings on which the NPS contribution is based, to include allowances and benefits when the conditions are met.

Conditions are: Basic salary must be less than the maximum insurable earnings threshold and allowances plus other benefits are greater than the basic salary.

The monthly ceiling for the insurable earnings will always apply when calculating the NPS contribution.

Note: To have this change incorporated on your payroll, please contact your Business Partner.