NAPSA struggles to get workers on pension scheme – March 2010

By Meluse Kapatamoyo

The National Pension Scheme Authority (NAPSA) says the existing investment agreements between government and foreign companies are hindering its ability to recruit more workers under the scheme.

NAPSA director general Stanely Phiri said certain sectors of the labour force, especially the mining sector, were not adequately covered in terms of pension schemes and security services due to the existing laws.

In an effort to attract more investment into the mining sector, the Zambian government signed investment agreements with foreign companies which exempt them from paying various taxes.

“It is true that some mines have been exempted from ensuring that their employees belong to NAPSA and making remittances to the authority. This is giving us challenges in terms of ensuring that all employees are covered by social security services,” said Phiri. “Some mining houses are giving the global economic crisis as an excuse for their continued exemption from remitting contributions to the authority.”

NAPSA is currently working on plans that will see workers in the informal sector join the scheme. The current system only accommodates workers in the formal sector.



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