Social Security

All about Social Security in Zambia, Who Earns Social Security in Zambia, the Formal and Informal Sector in Zambia and more on Mywage Zambia.

What is Social Security?

Social security is defined as “all social transfers in kind and in cash that are organised by the state or parastatal organizations or are agreed upon through collective bargaining.

What is the current situation in Zambia?

Currently, there are several social security schemes in Zambia. The National Pension and Scheme (NAPSA) is the largest social security scheme with an estimated coverage of eight percent of the labour force. 

Other schemes include the Public Service Pension Fund (PSPF) established under the Public Service Pensions Act and the Local Authority Superannuation Fund (LASF), established under the Local Authorities Superannuation Fund Act

What are the benefits of Social Security?

The benefits of social security schemes include cash transfers such as pensions, employment injury benefits, short term cash benefits (sickness and maternity benefits), as well as benefits in kind such as health services. 

How effective are pension schemes?

The operations of some of the pension schemes have faced a major challenge as a result of previous actions taken to streamline social security in Zambia. The decision made at the establishment of NAPSA in 2000 that all new employees in the public service and local government would contribute to NAPSA, meant that public pension schemes like the PSPF and the LASF could not generate new income, a situation that eventually led to their insolvency. Since that decision was made in, the PSPF and LASF have not recruited new members and have been without any new contributions.

Who gets social protection?

The majority of the population in Zambia do not have access to any form of social security as they earn their living from informal employment and cannot afford to subscribe to social security schemes. Therefore, the coverage of social security in Zambia is limited to employees in the formal sector. Eighty nine percent of the employed labour force ply their trade in the informal employment and are thus excluded from social security.

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Find out more about our Guide to NAPSA and How to Get Your Benefits from LASF