Revised Zambia’s NAPSA Contribution Ceiling for 2024

The National Pension Scheme Authority (NAPSA) has announced the revision of the ceiling for contributions for the year 2024. The new earnings ceiling for NAPSA contributions has been set at K29,816.00 per month, effective January 1, 2024.

Key Updates

1. New Contribution Ceiling: The maximum earnings on which contributions are based have changed to K29,816.00 a month.

2. Unchanged Contribution Rates: The monthly contribution rate is still pegged at 10% of an employee’s gross pay out of which 5% is borne by employer and employee in equal measure.

3. Maximum Monthly Contributions: A maximum amount that can be contributed by both an employer and employee every month remains K1,490.80 hence total maximum monthly single contribution must not exceed K2,981.60.

Calculation Breakdown

1. Employee Contribution

5% of the ceiling value = K29,816.00 x 0.05 = K1,490.80

2. Employer Contribution

5% of the ceiling value = K29,816.00 x 0.05 = K1,490.80

3. Total Monthly Contribution

Employee + Employer contributions = K2,981.60

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Employers are advised to update their payroll systems accordingly to reflect these changes and ensure compliance with the updated NAPSA regulations. Employees should also be aware of these adjustments so as to understand better what they contribute towards NAPSA scheme and how those contributions impact their benefits therein

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