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Updating the Zambia National Pension Scheme Authority (NAPSA) ceiling value for 2025

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Summary

How to change the ceiling value for the National Pension Scheme Authority (NAPSA) deduction on Sage Payroll Professional. You'll need to update your NAPSA Method of Calculation.

Description

As from 1 January  2025, the new NAPSA earnings ceiling is ZMW 34164.00 per month.

The maximum an employee or employer will contribute per month at 5% is ZMW 1708.20.

The total maximum contribution by both the employee and employer is ZMW 3416.40.

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

 

 

Resolution

Before you make changes

  1. Create a backup before applying the changes
  2. Ensure your company is in January 2025

Apply the changes

  1. Access your company.
  2. From the Main Menu of your company, go to Payroll, then select Definitions.
  3. Choose Methods of Calculation.
  4. Select Change.

     

  5. Click on the NAPSA deduction line.

  6.  

    Select the last method number on file for NAPSA.
  7. Increase the value next to 'If Calc Amnt is Greater than Max of' to 1708.20
  8. Increase the value next to 'Then Deduction must be' to 1708.20 (both deduction and company contribution)

 NOTE: Apply these changes for both deductions and company contributions. 

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  1. Once completed, Close the Method of Calculation screen.
  2. Select Yes to recalculate all values.

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