What is the Pensions and Other Benefits Scheme?
The Pension and Other Benefits Scheme (POBS), formerly referred to as National Pension Scheme (NPS), is a social security scheme whose main objective is to provide cash benefits to insured persons during periods of income stoppage due to retirement, invalidity, and death.
How is the POBS funded?
With effect from 1 June 2021 each insured person (employee) and his/her employer are required to make monthly contributions of 4.5% of salary up to maximum Pensionable earning that will be prevailing in the month of paying salaries. The maximum pensionable earning is based on 75% of the previous month’s total poverty consumption line of a family of five (5) people as supplied by ZIMSTATS. The Maximum pensionable earnings will be published on the NSSA website, press, and will be sent to employers through their emails monthly.
Thus, the employee and his/her employer contribute a total of 9% of salary up to the maximum pensionable earnings, which the employer shall remit to NSSA by the 10th day of the following month in which the contribution is due.
The contributions ordinarily payable in respect of each employee for any given month are calculated as follows:
Example based on 1 June 2024 maximum pensionable earnings of ZiG20,015.31.
Where an employee earns basic wage of $20,015.31 and above, the deductions are as follows:4.5% Employee Contribution $900.69
4.5% Employer Contribution $900.69
9% Total Payable to NSSA $1,801.38
Note:
- If employee earns less than the maximum pensionable earnings, then 9% will be applied on actual earnings to determine contributions due.
- Where an employee earns a basic salary lower than the Maximum pensionable earnings but is paid allowances and benefits
which exceed basic salary by 100% or more, the allowances and benefits will be grossed up with the basic salary to determine
the pensionable earnings, subject to prevailing maximum pensionable.
