Zimbabwe social security model among the best in Africa

ZIMBABWE’S social security model is regarded among the best in the region based on monthly minimum member benefits and contribution rates.

Dr Shava

The country provides mandatory social security cushion through the National Social Security Authority (NSSA), a Government agency that was created in October 1994 to establish various social security schemes for citizens.

Speaking to members of the Parliament Portfolio Committee on Public Service, Labour and Social Welfare in Victoria Falls recently, NSSA chief social security officer, Mr Shepherd Mperi, said Zimbabwe ranks second after Zambia in terms of minimum social security payouts.

While some countries in the region may pay higher based on their contribution rate that is high on full salary, he said NSSA was collecting contributions on a capped portion of salary, which leaves contributors with disposable income for other needs.

Mr Mperi said NSSA’s social security benefits seek to eradicate poverty by 2030 and thereby contribute to Sustainable Development Goals (SGDs), particularly SDG number 1.

Money – Image taken from Pixabay

He said by design NSSA is meant to collect the least contribution, which must be capped by a ceiling to allow members to contribute more. NSSA minimum payout is US$60 equivalent and the parastatal contribution rate is nine percent.

“National security is not only in Zimbabwe. We made an attempt to compare to what is happening in the region looking at other schemes. If you look at that comparison in the region you can see that as a social security institution, NSSA is doing fairly well,” said Mr Mperi.

“Zambia is the one that seems to be doing much better than us but their contribution rate is 10 percent.

“This is not the best that we want but we are saying we are trying. In the region we seem to be having the least in terms of contribution rate when others collect much more and pay more, NSSA is doing much better.”

Mr Mperi said NSSA has been reviewing monthly payouts since July 2022 responding to what is happening in the economy and also trying to move with the exchange rate based on what the organization can afford.

Mr Mperi said Burundi’s minimum pension is equivalent to US$2 and their contribution rate is six percent of full salary.

Zanzibar’s minimum pension is equivalent of US$5 and their contribution rate is 10 percent of full salary while Kenya has a contribution rate of 10 percent and minimum pension is US$15 equivalent and this is in full salary as well.

Tanzania minimum pension is US$16 and contribution rate is 10 percent while Ghana has a minimum pension of US$26 and contribution rate of 13,5 percent.

Angola’s minimum pension is US$37 and contribution rate is 16 percent while DRC has a minimum pension of US$47 and contribution rate is 13 percent subject to a ceiling.

Nssa

Mr Mperi said on the payouts side, Zimbabwe’s social security is at the bottom of the social security pillar called pillar 1 because it is designed to coexist with other schemes.

NSSA acting general manager Dr Charles Shava said NSSA is second best after Zambia, which is paying US$64 per month, because it collects the least amount of money from contributors on a cap or certain maximum. — chronicle