Formal Sector Contributions

Formal Sector Contributions Overview

The formal sector contribution scheme applies to all employees in formal employment relationships with registered employers. This mandatory scheme ensures comprehensive pension coverage for Zambia's formal workforce.

Key Features

Contribution Rate

10% of gross earnings shared equally between employer and employee (5% each)

Payment Schedule

Monthly contributions due by the 10th of the following month

Contribution Ceiling

Maximum monthly contribution: K2,892.03 (based on ceiling of K28,920.30)

Coverage

Retirement, invalidity, and survivor benefits for all registered employees

Who is Eligible?

All employees aged 16 years and above
Employees in formal employment relationships
Workers with registered employers
Both Zambian citizens and foreign workers
Full-time and part-time employees

Employer Responsibilities

Register business with NAPSA
Register all eligible employees
Deduct and remit employee contributions
Pay employer portion of contributions
Submit monthly contribution schedules

Benefits Available

Retirement Benefits

Monthly pension payments upon reaching retirement age or early retirement conditions

Invalidity Benefits

Financial support for members who become permanently disabled and unable to work

Survivor Benefits

Financial assistance to surviving spouses and dependents of deceased members

How to Register

For Employers:

Visit the NAPSA iCARE portal or any NAPSA office
Complete employer registration form
Provide required business documents
Register all eligible employees
Begin monthly contribution remittances

For Employees:

Ensure your employer is registered with NAPSA
Provide personal details to your employer
Receive your NAPSA member number
Monitor contributions through iCARE portal
Keep records of employment and contributions

Formal Sector Contributions