NSSA bemoans 35% employees’ pension coverage

By Own Correspondent

THE National Social Security Authority (NSSA) has bemoaned low coverage of employees amid revelations that just a paltry 35% are currently contributing towards coverage.

Addressing journalists recently NSSA Research and Schemes Planning Manager, Cosmas Chikwawawa said coverage remains appallingly low.

“There are a total of 36,307 employer organisations; active employees are 1,399,777 whilst inactive ones are 1,800,000. Pension and Other Benefits Scheme (POBS) covers approximately 35% of the labour force,” he said.

The NSSA chief said the high number of inactive employees and low coverage is reflective of the informalisation in the economy amid revelations that the World Bank estimates Zimbabwe’s informal economy to be 69% of Gross Domestic Product.

Chikwawa also revealed that the pensioner dependency ratio is currently 1 contributor to 6,6 beneficiaries.

“It is projected that this ratio will deteriorate to 2,72 in 50 years due to increased longevity and decline in fertility.

“It is estimated that only 24,3% of the population aged 65 and above are receiving pension through POBS,” he said.

NSSA is the statutory corporate body tasked by the government to provide social security.

The provision of social security can be defined as instituting public policy measures intended to protect an individual in life situations or conditions in which his/her livelihood and well -being may be threatened, such as those engendered by sickness, workplace injuries, unemployment, invalidity, old age, retirement and death.

It is based on the principle of social solidarity and pooling of resources and risks, involving drawing of savings from periods of employment, earnings and good health to provide for periods of unemployment, old age, invalidity and death. 

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