EmployerWhen Should an Employer Register?
The NPS Act of 1996 defines an Employer as “Any person, association or institution that has contracted another person for the provision of Labour.”
According to the NPS Act, an employer should register with NAPSA within one month of commencing business or employing an eligible employee.
MemberWho is a Member of NAPSA??
A member of NAPSA is one who has duly registered with NAPSA, has been issued with a Social Security number (and card) and contributes to the scheme in accordance with the National Pension Scheme Act. No. 40 of 1996 of the laws of Zambia.
This person is eligible upon retirement or invalidity to receive a benefit payment from NAPSA.
EMPLOYER ELIGIBILITY FOR NAPSA REGISTRATION
The following types of employers are eligible to register with NAPSA:
- The Government of the Republic of Zambia, Local Authorities or Parastatals or Statutory Bodies.
- Individuals and households employing domestic servants or casual workers.
- Non-Governmental Organizations, Foreign Missions and International Organizations employing Zambian citizens.
- Other employers include SMEs, Projects, Multinational Organizations, and;
- Any other person, association, institution or firm with a contract of service with an eligible employee and is responsible for paying the employee’s wages.
EMPLOYEES ELIGIBLE FOR NAPSA REGISTRATION
Membership to the National Pension Scheme is compulsory and the following employees among many others are covered:
- Employees engaged on part-time.
- Employees on probation or casual basis.
- Employees engaged on permanent basis.
- Employees on contract.
- Domestic workers
- Non-Zambians engaged by local institutions.
- Public Service workers who joined the civil service after 1st February 2000
Conversely, there are some classes of employees who are exempted from NAPSA. For more information click on Exemptions tab.
- An International Organisation granted “ International Status” under the Diplomatic Immunities & Privileges Act, CAP 20.
There are some classes of employees who are exempted from NAPSA membership which include:
- Non-Zambians employed by International Organizations or those that enjoy diplomatic status.
- Workers earning below K15.00 are also exempted from NAPSA. In a bid to try and cover every worker, Pay As You Earn tax exemptions do not affect NAPSA deductions in any way. This therefore implies that wage levels that are exempted from PAYE, are not exempted from NAPSA for as long as they are above K15.00
- Members of the armed forces are equally exempted, but it should be noted that civilians engaged in the Zambia Air Force, Zambia Army, the Police Service and other related wings of Armed Forces; are eligible members of NAPSA.
GUIDELINES FOR NON-ZAMBIAN EMPLOYERS
- Non Zambian Employers operating in Zambia with employees must register within one month of employing
- They must pay contributions for their Zambian and Non-Zambian staff at the rate of 5% for the employee and 5% for the employer
- Payments and returns must be made in the prescribed manner before the due date
- They must maintain records relating to pensions contributions in perpetuity
- They must file monthly returns
REGISTRATION OF NON-ZAMBIANS EMPLOYEES
It is important for all to note that any Non-Zambian employed in Zambia is also expected to submit correct information to the Authority. The following is therefore the position of the Authority regarding their registration:
- All Non-Zambians are obliged under the National Registration Act to obtain NRCs within two weeks of entry into the country if their stay exceeds three months.
- Hence, any filled in member registration forms without NRC numbers will be regarded as invalid.
NOTIFICATION OF CHANGES FOR EMPLOYERS
- Changes in their employment status (Suspension or Closure of Business)
- Location Address and Contact details [email, phones, postal add. etc.]
- Changes in the number of employees
- Any other changes that impact on payments of contributions or are material to the payment of contributions
NOTIFICATION OF CHANGES FOR EMPLOYEES
Employees should make sure they visit the nearest NAPSA Office and fill out the appropriate form whenever any of the following happens:
- At employment or change of employer
- Change of marital status
- Birth of a child
WHAT EMPLOYERS SHOULD EXPECT AFTER REGISTRATION?
The Act imposes the following obligations on employers:
- Register Workers
- File Monthly Returns
- Pay Contributions
- Retain Records
- Notify the Scheme of Changes
WHAT MEMBERS SHOULD EXPECT AFTER REGISTRATION?
After a successful completion of the registration process, members should expect to be issued with the Membership Card referred to as the Social Security Card. These cards are obtainable from any NAPSA office and can be issued instantly without charge. With this card they can walk into any NAPSA office to obtain their Member Statements. Members are however encouraged to track their Membership Statements using electronic platforms such as eNAPSA, NAPSA Mobile and USSD. Click here to read more about our ePlatforms
It is an appeal that all eligible members of the scheme dedicate some time to find out further on what NAPSA is all about and any other pertinent concerns they feel should be attended to. Above all, where matters of social security are concerned, information is very key. To find out more about who we are click here.
NAPSA membership has been extended to all self-employed (own account) workers through the enactment of Statutory Instrument No. 72 of 2019.
The motivation for this extension stems from two major reasons; firstly, social security is a human right and secondly, around 70% of employed labour is in the informal sector and lacks social security. Therefore, these self-employed individuals need to be equally protected
What is ECIS?
ECIS is an acronym for Extension of Coverage to the Informal Sector. It is an initiative aimed at ensuring that all workers in Zambia are covered for social security through onboarding new members from the informal sector.
NAPSA has prioritised its focus on five sectors in its extension of coverage agenda:
- Domestic workers
- Bus and taxi drivers
- Small scale farmers
- Marketeers and traders
SELF EMPLOYED NAPSA MEMBERSHIP
You can register as a self employed informal sector member at any time by visiting the nearest NAPSA office and complete the membership form(have a link to the form here) ,or through the NAPSA mobile app downloadable on google play store and apple store.
SELF EMPLOYED CONTRIBUTION AMOUNT
The minimum contribution amount is K50.00 per month (2022), which can be paid daily, weekly, monthly, quarterly, bi annual and annually depending on your income pattern.
SELF EMPLOYED CONTRIBUTION REMITTANCE PROCESS
You can remit your pension contribution either through a NAPSA Agent or via MTN, Airtel or ZAMTEL by following the steps tabulated hereunder;
- Dial *677#
- Select option 3 (Self Employed)
- Then select option 3 (make contribution)
- Key in either your NRC no. or Social Security Number
- Key in the phone number with a recharged mobile money wallet to be used for the transaction
- Enter the amount to pay
- Enter the mobile money pin on the sent prompt to complete the transaction
- An SMS acknowledgement of payment is instantly received.
SELF-EMPLOYED INFORMAL SECTOR BENEFITS
Long term Benefits
- Retirement lumpsum/pension
- Invalidity lumpsum/pension
- Survivors lumpsum/pension
- Family Funeral grant
- Weather index insurance
- Access to credit
More details on the eligibility of the Benefits above can be found in Qualifications and Eligibility
The Authority has partnered with the following institutions to continually make extension possible to more people.
- Maid Centres
- Domestic Workers Union
- Association for Employers of Domestic Workers
- International Labour Organization(ILO)
- Finnish Government
- Marketeers and traders associations
- Dairy Association of Zambia
- Zambia Industrial Commercial Bank