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National Social Security Scheme in Zimbabwe: Key Takeaways and Insights

Strategic Insights

— 1 min read

The National Social Security Scheme (NSS) in Zimbabwe is set to roll out from April 1 next year, with all workers contributing 4 percent of their gross income. The scheme aims to provide financial support to workers during retirement, sickness, and maternity, and will initially exclude the army, National Railways of Zimbabwe employees, and civil servants.

Key Takeaways:

  • The NSS will require 4 deputy general managers and 4 assistant general managers, who have been interviewed and will be appointed next month.
  • The ceiling contribution to the scheme is $48,000 per year, subject to periodic review.
  • The scheme will provide pensions to workers when they reach the retirement age of 60 years.
  • 1.2 million workers in Zimbabwe will be covered by the scheme, with 800,000 currently members of private pension schemes and 400,000 without cover.
  • The NSS was developed collaboratively by employers, unions, and government, with assistance from the International Labour Organisation (ILO).
  • The scheme was modelled on successful global examples, indicating a desire to modernise Zimbabwe's social safety net.
  • The NSS aims to provide financial support to workers during retirement, sickness, and maternity.
  • The National Social Security Authority was formed 8 years ago by employers, workers' unions, and government, with assistance from the ILO.

Statistics:

  • 1.2 million workers in Zimbabwe will be covered by the NSS.
  • 800,000 workers are currently members of private pension schemes.
  • 400,000 workers have no access to private pensions.
  • 4 deputy general managers and 4 assistant general managers will be appointed to the NSS.
  • $48,000 is the ceiling contribution to the scheme per year.
  • The NSS will be implemented from April 1 next year.

Sources:

  • Interview with Mr. John Lynch, General Manager of the National Social Security Authority, Harare News.
  • The National Social Security Authority, Harare.
  • International Labour Organisation (ILO), Harare.

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