Only 50pct of firms paying NSSA dues

via Only 50pct of firms paying NSSA dues 03 September 2014

THE National Social Security Authority (NSSA) said Wednesday that only 50 percent of companies were paying the compulsory employee contributions to the pension fund as the economy continues to struggle, but revenue had doubled in the last three years.

Contributions to the state-run pension fund are compulsory and are supposed to be made monthly, but many companies are struggling, with compliance increasing by four percent between 2011 and 2013, NSSA compliance manager James Chiwera told a labour workshop.

“The legal compliance rates continue to hover around the 50 percent mark. This means there is still much room for employers to improve on compliance,” said Chiwera.

But he said revenue had doubled in that time, without giving figures.

Last year, NSSA introduced a new combined employee/employer contribution rate of seven percent on insurable earnings of up to $700 per month.

Its investments on the equities market grew by 27 percent to $668 million in 2013 compared to prior year driven by strong returns on the local bourse.

NSSA public relations liaison officer Morris Nyamadzawo said only nine of the 15 schemes run by the pension fund were operational.

Nyamadzawo said invalidity, pensions, long-term, short-term, survivors, employment injury, long-term permanent disability and temporary disability benefits funds were still active.

Schemes such as old-age, unemployment, maternity, medical care, sickness benefits and family allowances were now inactive.

He did not give reasons for stopping the schemes or when they were closed.