The Statutory Instrument (SI) 169 of 2021, pertaining to contribution rates to the National Social Security Authority’s (NSSA) Pension was promulgated with changes that are effective 01 June 2021.
- Insurable earnings ceiling (SI 393/93 Section 11 (3))
The new maximum amount of monthly insurable earnings in respect of which contributions are payable shall be 75% (seventy-five per cent) of the previous month’s Total Consumption Poverty Line (TCPL) for an average of five persons per household. Where the TCPL figure is not available or published, the last published figure remains applicable.
The national TCPL figures are published by Zimbabwe National Statistics Agency (ZIMSTAT) and accessible on www.zimstat.co.zw/pdl/ .
NSSA will publish the monthly insurable earnings applicable for each month by the 1st of each month on the NSSA website www.nssa.org.zw
This means that the insurable earnings ceiling in the payroll system will need to be reviewed on a monthly basis.
The below steps need to be followed before payroll is finalised each month:
- Click on Payroll
- Click on Definitions
- Select the Methods of Calculation
- Click on Change
- Click on your NSSA Deduction line and select method number 2
- Change the contribution rate and increase the limits as indicated in the below method
- Calculate the limits as follows:
A = Monthly insurable earnings amount
B = A x 4.5%
Enter the value of B as indicated on the screen print below:
- Once you are done, close the method screen and select YES to recalculate.
Remember: These changes need to be implemented before printing reports/payslips and/or paying your employees.
NOTE: The Insurable Ceiling amount will change each quarted going forward (from Arpil 2022, previous to this monthly) and therefore the capped NSSA amount has to be adjusted each quarter as well.