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Zimbabwe Pensions Authority Says Many Firms Not Paying Into System

  • Gibbs Dube

More than 24,000 firms are supposed to be contributing US$7 a month for each worker to the authority, but Zimbabwe's National Social Security Authority says most are not doing so because of financial pressures

Zimbabwe's National Social Security Authority says close to 8,000 companies are failing to pay into the retirement system, meaning smaller monthly pensions for the elderly.

Sources said a company audit conducted by the authority found that 7,757 firms across the country falling short on their stipulated monthly payments. But observers questioned the data saying numerous companies shut down in the 2000 to 2008 economic crisis.

More than 24,000 firms are supposed to be contributing US$7 a month for each worker to the authority, but NASSA says most are not doing so because of financial pressures.

Confederation of Zimbabwe Industries President John Mufukare said he was not aware that so many firms were delinquent. “I do not think that companies can fail to pay the stipulated contributions even if they are operating under difficult conditions,” Mufukare said.

Economist Daniel Ndlela said the authority should move to computerize its records, which he said based on his personal experience are in disarray. “Instead of accusing companies of failing to pay workers pension funds, NASSA should put its house in order," he said.

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