Zambia. Government proposes to hike NAPSA contributions, abolishes private pension schemes
The PF Government has proposed to increase pension contributions to the National Pensions Scheme Authority from the current 5% to 10%.
Currently, the employer and the employee contribute 10% of their gross monthly earnings to NAPSA, a mandatory pension scheme.
According to a proposal from the Ministry of Labour and Social Security, their monthly contributions will rise to 10% employer and 10% employee.
The proposal also seeks to limit the pension schemes allowed to exist in Zambia to have just one, NAPSA. This will see the abolishment of in-house pension schemes from both public and private sectors.
The proposals are part of government plans to reform the pension sector which government said have reached an advanced stage.
Details of these reforms were shared at a recent Tripartite Consultative Labour Council meeting in Lusaka.
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