How do I increase the NAPSA ceiling value for Zambia (2025)?

How to change the ceiling value in a Method of Calculation for the National Pension Scheme Authority (NAPSA) deduction on Sage VIP Premier.

As from 1 January  2024, the new NAPSA earnings ceiling is ZMW 34 164 per month.

The maximum an employee or employer will contribute per month at 5% is ZMW 1 708.20.

The total maximum contribution by both the employee and employer is ZMW 3 416.40.

The contribution rate remains unchanged at 10% of the employee’s monthly gross earnings subject to the statutory contribution ceiling above.

 

 

CAUTION: These changes must be implemented before printing reports/payslips and/or paying your employees, In January 2025.

NOTE: It is advisable to make a backup before making any system changes to your payroll system. 

Step 1:

• From the main menu of your company, select Payroll > Definitions > Methods of Calculation
• Select Change

Step 2:

• Select the NAPSA deduction line

Step 3:

• Select the last method number on file for NAPSA

Step 4:

• Increase the value next to 'If Calc Amnt is Greater than Max of' to 1708.20 (both deduction and company contribution)
• Increase the value next to 'Then Deduction must be' to 1708.20 (both deduction and company contribution)

Step 5:

• Once you have completed the changes, close the Method of Calculation screen, and select Yes to recalculate all values

 TIP: We recommend reviewing the calculation on your employees to ensure the limit applies correctly for both deductions and company contributions.

For any assistance with the changes to the NAPSA limit, contact your accredited Sage Business Partner.