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LCM miners to save more on new scheme – March 2010

By Meluse Kapatamoyo

Workers at Luanshya Copper Mines (LCM) will now save more for retirement after the introduction of a new pension scheme which binds the employer to contribute 25 percent towards their savings.

This is 14 percent more than what the company was paying previously, making it the first mining company to offer such a lucrative deal to its employees. Under the old scheme, employees contributed five percent and their employers 11 percent.

According to Mine Workers Union of Zambia (MUZ) LCM chairman, Stanslous Mwimbe, the new Mukuba Pension Scheme would motivate workers to save for retirement.

“In the new scheme, workers will contribute five percent and the employer 25 percent. What will go towards the employee’s retirement scheme is 30 percent of basic pay a month.
Workers, who leave employment before the retirement age of 55, would receive the money minus government tax. Those that retire at age 55 would get the contribution together with the employers and interest.”

Mwimbe said the scheme would give some workers the opportunity to save as much as K500, 000.

LCM has a workforce of 2,500 and of these 1, 700 are MUZ members.

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