Fulfilling Your Mandate: A Guide to Employer Obligations Under NSSA Schemes
The National Social Security Authority (NSSA) in Zimbabwe administers two critical social security schemes: the Accident Prevention and Workers’ Compensation Scheme (APWCS) and the Pensions and Other Benefits Scheme (POBS). Employers play a central role in the operation of these schemes and are bound by several statutory obligations, which cover registration, contributions, reporting, and record-keeping.
1. Registration and Notifying Changes
All employers are legally required to formally register with NSSA to ensure their employees are covered by the two schemes.
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Timely Registration: An employer must register within 30 days of becoming an employer. Registration is compulsory, and penalties are charged for late registration.
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Multiple Businesses: Where an employer has businesses in different types of industries, those businesses must be registered separately.
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Notice of Changes: The employer must notify NSSA in writing, within one month, of any changes to their registration details. These changes include, but are not limited to:
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Change of business name, address, or other contact details.
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Closure or commencement of business or a new branch.
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Ceasing or resuming to be an employer.
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Change of banking details.
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2. Contribution and Remittance Duties
The employer is responsible for calculating, collecting, and remitting contributions for the two schemes.
Pensions and Other Benefits Scheme (POBS)
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Joint Contribution: The employer is required to deduct the employee’s contribution (4.5% of salary up to the maximum pensionable earnings) and contribute an equal amount (4.5%) for each employee.
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Remittance Deadline: The employer must remit the total contribution (9%) to NSSA by the 10th day of the following month in which the contribution is due.
Accident Prevention and Workers’ Compensation Scheme (APWCS)
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Employer-Funded: This scheme is fully funded by the employer; employees do not contribute.
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Basis of Payment: The premium is calculated by multiplying the total basic salary (with no ceiling on insurable earnings) by the applicable insurance rate, which is based on the employer’s industry risk code.
Documentation
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Monthly Returns: Employers must complete the P4A Form (remittance advice slip) and upload the Online P4 Form (breakdown of employee contributions) on their Self-Service Portal (SSP) account monthly to accompany the payment.
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Annual Returns: Employers are obliged to send in Annual Returns, which include the Wage Declaration form for APWCS, even if NSSA does not provide a specific form.
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Dual Employment: If an employee is engaged by two or more employers concurrently, each employer is liable to collect and pay contributions on the salary/wages they pay.
3. Employee Status and Accident Reporting
Employers must diligently update employee records and report workplace incidents.
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Update Employee Status: The employer must immediately update changes to an employee’s status, such as termination of employment or death, on the Employee record on the Self-Service Portal. This also applies when a new employee who is already an NSSA member is engaged.
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Report Workplace Accidents: Once an employee is injured in a work-related accident, the employer must immediately provide first aid and promptly refer the worker to a medical centre.
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Reporting Deadline: The employer is obliged to report the accident to the nearest NSSA office by completing the APWCS 14 (Accident Report Form) within 14 days of gaining knowledge of the work-related accident.
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Surcharges for Late Reporting: Failure to report an accident within the 14-day period attracts a surcharge of $10 per day, up to a maximum of $2,000.
4. Record-Keeping Requirements
Every employer is required to maintain accurate and detailed records for all employees and produce them to NSSA inspectors on demand.
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Employee Records: Records for each employee must include:
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National Social Security Number and National ID Number.
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Name and date of birth.
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Date of commencement and termination of employment.
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Date and amount of total earnings, amount of employee deduction, and employer’s contribution for each month.
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Summary Records: The employer must also keep a summary record showing the number of workers employed and the total wage bill per month.
5. Consequences of Non-Compliance
Non-compliance with NSSA regulations carries serious penalties as defined in the governing statutes.
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Offenses: An employer is guilty of an offense if they: fail to maintain any relevant records; fail to pay contributions within the stipulated period; obstruct an NSSA Inspector; fail to produce required documents; or knowingly deduct from an employee’s wage/salary any amount exceeding the employee’s share.
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Penalties: A person convicted of contravening a scheme provision is liable to a level five fine or imprisonment for a period up to six months for the first conviction, or up to one year for a second or subsequent conviction.
