NSSA penalties can quickly turn a small arrear into a crippling debt for a business. The rates and penalties are stipulated in the relevant Statutory Instruments (SIs) for the Pension and Other Benefits Scheme (POBS) and the Accident Prevention and Workers Compensation Scheme (APWCS).
Here are the current penalty and surcharge rates NSSA applies for non-compliance, based on recent amendments and common practice:
💰 NSSA Penalties and Surcharges for Non-Compliance
NSSA penalties are generally applied in two categories: a monthly penalty/interest for late payment of contributions (arrears) and daily/fixed penalties for procedural non-compliance (like late submission of returns).
1. Penalty on Late/Arrear Contributions (Interest)
This is the primary financial penalty levied on the outstanding principal amount of the contributions (both the employer and employee share).
| Non-Compliance Type | Rate | Calculation/Limit |
| Failure to Remit Contributions by Due Date | 10% per month | The penalty is calculated on the amount of the arrear contributions (principal) for each month or part thereof that the payment is late. This penalty is capped at a maximum of 50% of the arrear contributions. |
Example: If an employer owes a principal amount of US$1,000 for five months, the penalty could accrue rapidly:
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Month 1: US$100 (10% of $1,000)
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Month 2: US$100
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…until the 50% cap of US$500 is reached.
2. Penalty for Late Submission of P4 Returns
The P4 Return is the document detailing the contributions made for each employee. Failure to submit this by the 10th of the following month is a separate offense from late payment.
| Non-Compliance Type | Rate | Calculation/Limit |
| Late Submission of Mandatory P4 Returns | US$30 per day or ZWL Equivalent | The penalty applies for each day the P4 return is late. While a daily penalty is stipulated, historical SIs have sometimes capped this or offered grace periods. The daily fine for late submission is significant and designed to force timely reporting. |
3. Surcharge and Fines for Other Offences
The law also provides for fines and surcharges for other breaches:
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Failure to Register: Any employer who fails to register with NSSA within 30 days of becoming an employer can be liable to a surcharge.
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Conviction/Criminal Fines: In addition to the monetary penalties, NSSA has the right to prosecute employers for severe or persistent non-compliance. Upon conviction, the employer is liable to:
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First Conviction: A fine (up to Level 5) or imprisonment not exceeding six months, or both.
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Subsequent Conviction: A higher fine (up to Level 5) or imprisonment not exceeding one year, or both.
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4. Important Considerations for Businesses
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Dual Currency: Given Zimbabwe’s multi-currency environment, NSSA mandates the submission of returns and contributions in the currency of payment (e.g., USD or ZiG). Penalties may be applied and calculated in the currency of the default.
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No Ceiling on APWCS Penalties: While the POBS has a contributions ceiling (e.g., US$700 for 2025), the Accident Prevention and Workers Compensation Scheme (APWCS) is calculated on the full wage bill with no ceiling. Therefore, penalties for APWCS arrears can be substantial on a high payroll.
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Waivers: NSSA occasionally offers penalty waiver programs for past compliance periods to encourage employers to come clean, pay the principal arrears, and submit outstanding returns.7 When these programs are announced, businesses should participate immediately to clear historic debt and avoid further compounding penalties.
Disclaimer: These rates are based on the latest publicly available Statutory Instruments and NSSA’s stated policy. Given the frequency of legislative changes in Zimbabwe, particularly regarding penalties and currency, businesses should always confirm the current, exact rates with their payroll consultant or directly with National Social Security Authority (NSSA) at the time of calculation or remittance.
