Understanding the National Social Security Authority (NSSA) in Zimbabwe

The National Social Security Authority (NSSA) was established under the NSSA Act of 1989, Chapter 17:04, with the mandate to provide social security services in Zimbabwe. NSSA administers two primary social security schemes: the Pension and Other Benefits Scheme, commonly known as POBS, and the Accident Prevention and Workers’ Compensation Scheme referred to as the APWCS.

The Pension and Other Benefits Scheme (POBS)        

The Pension and Other Benefits Scheme is designed to offer retirement support for workers, ensuring they receive a pension or grant upon reaching retirement age or when permanently incapacitated due to a serious disability or illness. This scheme also provides financial support to the surviving dependents of a contributor or pensioner in the event of their death.

All working Zimbabweans over the age of 16 are required to contribute to this scheme until they reach 65, except for domestic workers. Contributions are split equally between employees and employers, with employers responsible for registering their companies and employees with NSSA, deducting the employee's contribution, and remitting it alongside their own by the 10th of each month.

There are five main types of benefits offered under POBS; Retirement Benefit, Invalidity Benefit, Survivor’s Benefit, Children's Allowance and Funeral Grant.

1. Retirement Benefit: This is payable to contributors aged 60 to 64 upon retirement and to those aged 65 and above regardless of their employment status. Early retirement benefits can be claimed at 55 for those in arduous jobs such as agriculture and mining. The benefit is paid as a monthly pension if the contributor has at least 120 months of contributions, or as a lump sum grant if contributions are between 12 and 119 months.
2. Invalidity Benefit: This is for contributors under 60 who are permanently unable to work due to illness or disability. The invalidity has to be certified by medical doctors. It is paid as a monthly pension for those with at least 12 months of contributions and as a lump sum for those with 6 to 11 months of contributions.
3. Survivor’s Benefit: This is provided to the dependents of a deceased contributor or pensioner, typically the spouse and children under 18 (or 25 if still in education, or indefinitely if disabled). Unmarried individuals can register parents or other relatives as dependents. The benefit is a monthly pension for at least 120 months of contributions or a lump sum grant for 12 to 119 months of contributions.
4. Children's allowance: The benefit is available to children of contributors who have died. The allowance is provided for children up to the age of 18. However, if the child is engaged in full-time formal education, the benefit extends until the age of 25. Continued eligibility beyond 18 years requires proof of enrollment in full-time formal education.
5. Funeral Grant: This lump sum helps cover the funeral expenses of a deceased contributor or pensioner who has contributed to NSSA for at least a year.

To claim benefits, applicants must submit Form P9/P10, a certified copy of their ID, and additional documents if the main contributor has passed away.

Calculation and Payment of Pensions

Retirement pensions are calculated based on the contribution period and the contributor’s insurable earnings at retirement. NSSA ensures a minimum pension for contributors, reviewed periodically, usually in response to changes in contribution rates or maximum insurable earnings limits. Contributions are a percentage of the employee’s earnings, with limits set by the government.

The Pension and Other Benefits Scheme transcends individual job appointments, ensuring continuity of contributions across different formal sector jobs. NSSA is tasked with safeguarding member contributions and investing surplus funds to ensure their growth and availability when needed.

The scheme aims to provide basic income for those who can no longer work, either due to age or disability. The longer and more consistent the contributions, the higher the pension.

The Accident Prevention and Workers’ Compensation Scheme         

The (APWCS) is built on two fundamental pillars:

1. Promotion of Workplace Safety

NSSA dedicates a whole division to the promotion of occupational safety and health (OSH). This division's activities include safety awareness campaigns, occupational safety and health workshops, and the enforcement of safety regulations through factory inspections. These efforts aim to foster a culture of safety and prevent workplace accidents.

2. Monetary Compensation

The APWCS offers monetary compensation to workers and their families in the event of serious injuries, diseases, or fatalities caused by workplace incidents. The fund used to go by the name the Workers Compensation Insurance Fund (WCIF). The fund covers medical expenses, hospitalisation, and rehabilitation services. A notable feature is NSSA's Rehabilitation Centre in Bulawayo, which provides comprehensive rehabilitation services to help injured workers regain independence and, where possible, return to work.

Employer Responsibilities

Employers, excluding government entities, employers of domestic workers, and those in the informal sector, are legally obligated to contribute to the APWCS. Upon starting a business, employers must register with NSSA and declare the estimated earnings of their employees. The insurance premium, calculated as a percentage of each employee's wage, varies by industry based on associated risk factors.Employers must inform NSSA of any significant changes in their business operations that might impact the premium calculation.

In the event of a workplace accident, the employer must provide immediate first aid and transport the injured worker to the nearest medical facility. A completed WCIF 14 Accident Report Form must be submitted to NSSA within 14 days of the accident. In cases of severe or fatal accidents, immediate notification to NSSA and the police within 24 hours is mandatory.

Compensation and Benefits

The APWCS ensures continued payment of an injured worker's normal wage for the first 30 days post-accident, followed by a percentage of the wage for up to 180 days. NSSA covers all related medical expenses, including transport, medication, and hospital fees, based on the rates of the Association of Healthcare Funders of Zimbabwe (AFHoZ).

In cases of permanent disability, compensation depends on the severity: a lump sum is paid for disabilities less than 30%, and a pension is provided for those exceeding 30%. Additionally, children of the injured worker receive allowances up to age 19, or 25 if they are in full-time education.

If a worker dies due to a workplace incident, the surviving spouse receives a pension amounting to two-thirds of what the deceased worker would have received, along with allowances for children. A fixed sum is also granted to cover funeral expenses.

Rehabilitation Services

NSSA’s Workers' Compensation Rehabilitation Centre in Bulawayo is the country's only facility dedicated to the rehabilitation of workers injured on the job. It offers a range of services including physiotherapy, occupational therapy, medical care, counselling, social work, and vocational training. The centre's multidisciplinary team helps workers regain physical functionality and adjust to any disabilities, with the ultimate goal of reintegration into the workforce or enabling self-employment.

Occupational Safety and Health Initiatives

Ensuring a safe and healthy working environment is crucial for both employers and employees. NSSA’s Occupational Safety and Health division conducts educational campaigns, factory inspections, and safety workshops to promote OSH practices. Compliance with safety regulations is essential, but NSSA also encourages employers to develop comprehensive safety and health management systems, offering expertise to support these efforts.

Legislative Framework and Health Hazards

Several laws underpin the obligation to provide safe working conditions, including the Factories and Works Act, the Pneumoconiosis Act, the Radiation Protection Act, the Environmental Management Act, and the Mining Management and Safety Regulations. Recognising and mitigating occupational health hazards—ranging from physical and chemical to biological, mechanical, ergonomic, and psycho-social—is vital in preventing workplace accidents and diseases.

Economic Impact

The economic repercussions of occupational accidents and illnesses are significant, potentially costing the nation a significant portion of its gross national product. Conversely, enhancing occupational safety and health practices benefits individuals, companies, and the nation’s economic development.

NSSA's Occupational Safety and Health division remains committed to improving workplace safety and health standards. Through a combination of regulatory enforcement, educational initiatives, and rehabilitation services, NSSA aims to ensure the well-being of Zimbabwe's workforce. This holistic approach underscores the importance of safety and health as essential components of a productive and sustainable working environment.

National Reach and Investment Strategy

NSSA’s investment policy mandates a balanced portfolio including money market instruments, equity investments, and property investments to mitigate risks. Some investments aim to benefit members and communities, such as housing developments, commercial centres, and hospitals, while also promoting economic development.

Community and Economic Impact

NSSA has significantly invested in various projects, including shopping centres, hospitals, residential developments, and money market investments, and launched NBS bank. These investments not only provide good returns for the pension fund but also enhance community well-being.

Governance and Future Prospects

NSSA operates under the oversight of a board comprising; pensioner, employer and employee representatives. The administration of the pension schemes adheres to international social security standards. Since its inception in 1994, NSSA’s pension fund has grown into a major investor in Zimbabwe, poised to provide substantial pensions to retirees in the future. As the scheme matures, it is expected to offer higher benefits comparable to those in countries with long-established pension systems.

Article by Tafadzwa Mushaikwa