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Zimbabwe's public service workers to pay pension in foreign currency
03 Jun 2024 at 04:31hrs | Views
The Treasury has announced that all public service workers earning in foreign currency must now make their pension contributions in the same currency, starting this year, as per the directive from the Public Service Commission (PSC).
In cases where employees earn both foreign currency and local Zimbabwe Gold (ZiG) currency, they will apply the same ratio for their contributions.
Dr. Tsitsi Rosemary Choruma-Dozwa, the Secretary of PSC, outlined in a letter dated May 28, 2024, that the USD National Social Security Authority (NSSA) contribution will be enforced after converting USD Covid-19 and cushioning allowances into pensionable emoluments from January 1, 2024.
This change aligns with the provisions of Statutory Instrument (SI) 169 of 2021 concerning public sector employees, effective from January 1, 2024.
Section 8(b) (4) of the instrument stipulates that individuals earning remuneration in a currency other than Zimbabwean Dollars must contribute in foreign currency. For those earning a mix of foreign currency and Zimbabwean Dollars, contributions should reflect the same currency ratio.
"The outstanding contributions should be settled in three monthly installments, starting from 2024," noted Dr. Choruma-Dozwa.
Dr. Choruma-Dozwa also communicated this directive to the government's Paymaster.
This decision stemmed from a letter dated January 24, 2024, from Dr. Charles Shava, the Acting General Manager of NSSA, seeking assistance to inform PSC about adjusting NSSA contributions following the conversion of USD Covid-19 Allowance into a pensionable salary, as guided by Section 8(b) of SI 169 of 2021.
NSSA believes this request will help sustain the viability of the scheme.
Subsequently, Simon Masanga, the Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare, together with George Guvamatanga, the Permanent Secretary in the Ministry of Finance and Economic Development, wrote to the PSC secretary, urging implementation of the same order.
"The NSSA has advised that the computation of NSSA contributions is guided by Section 8(b) of SI 169 of 2021, following the conversion of the US$ Covid-19 and US$ cushioning allowances for Public Service employees into a pensionable salary," the letter stated.
"In light of this, NSSA requests the commission to enforce the provision of SI 169 of 2021 from January 1, 2024, to ensure the sustainability of NSSA schemes."
In cases where employees earn both foreign currency and local Zimbabwe Gold (ZiG) currency, they will apply the same ratio for their contributions.
Dr. Tsitsi Rosemary Choruma-Dozwa, the Secretary of PSC, outlined in a letter dated May 28, 2024, that the USD National Social Security Authority (NSSA) contribution will be enforced after converting USD Covid-19 and cushioning allowances into pensionable emoluments from January 1, 2024.
This change aligns with the provisions of Statutory Instrument (SI) 169 of 2021 concerning public sector employees, effective from January 1, 2024.
Section 8(b) (4) of the instrument stipulates that individuals earning remuneration in a currency other than Zimbabwean Dollars must contribute in foreign currency. For those earning a mix of foreign currency and Zimbabwean Dollars, contributions should reflect the same currency ratio.
"The outstanding contributions should be settled in three monthly installments, starting from 2024," noted Dr. Choruma-Dozwa.
Dr. Choruma-Dozwa also communicated this directive to the government's Paymaster.
This decision stemmed from a letter dated January 24, 2024, from Dr. Charles Shava, the Acting General Manager of NSSA, seeking assistance to inform PSC about adjusting NSSA contributions following the conversion of USD Covid-19 Allowance into a pensionable salary, as guided by Section 8(b) of SI 169 of 2021.
NSSA believes this request will help sustain the viability of the scheme.
Subsequently, Simon Masanga, the Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare, together with George Guvamatanga, the Permanent Secretary in the Ministry of Finance and Economic Development, wrote to the PSC secretary, urging implementation of the same order.
"The NSSA has advised that the computation of NSSA contributions is guided by Section 8(b) of SI 169 of 2021, following the conversion of the US$ Covid-19 and US$ cushioning allowances for Public Service employees into a pensionable salary," the letter stated.
"In light of this, NSSA requests the commission to enforce the provision of SI 169 of 2021 from January 1, 2024, to ensure the sustainability of NSSA schemes."
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