The Statutory Instrument (SI) 169 of 2021, pertaining to contribution rates to the National Social Security Authority’s (NSSA) Pension was promulgated with changes that are effective 01 June 2021.

 1. Insurable earnings ceiling (SI 393/93 Section 11 (3))

The new maximum amount of monthly insurable earnings in respect of which contributions are payable shall be 75% (seventy-five per cent) of the previous month’s Total Consumption Poverty Line (TCPL) for an average of five persons per household. Where the TCPL figure is not available or published, the last published figure remains applicable.

 The national TCPL figures are published by Zimbabwe National Statistics Agency (ZIMSTAT) and accessible on www.zimstat.co.zw/pdl/ .

The insurable earning ceiling for the month of June 2021 is therefore $21 641.25.

 NSSA will in turn publish the monthly insurable earnings applicable for each month by the 1st of each month on the NSSA website www.nssa.org.zw

This means that the insurable earnings ceiling in the payroll system will need to be reviewed monthly.

 2. Foreign Currency Remittances [SI 393/93 Section 11(4)]

Section 11 (4) provides that any person in Zimbabwe who earns remuneration in a currency other than that of Zimbabwe is required to pay his contributions in foreign currency.

 (a) For the purposes of applying contribution rates, the income earned in USD should be converted to its equivalent ZWL at the interbank rate prevailing when the income is paid.

(b) If income is denominated in a foreign currency other than the USD, the equivalent amount in USD shall be calculated using the international cross rate of exchange of that currency in USD prevailing on the day the income is paid.

(c) Where an individual earns remuneration in a combination of USD and ZWL, for the purposes of calculating contributions due, the incomes earned shall be treated separately as in (a) and (b) above

 This means that, the USD insurable earnings need to be converted to ZWL in order to apply the monthly ceiling.

Please note: