The National Social Security Authority (NSSA) has launched a two-month audit to verify the compliance by local companies in submitting employee pension contributions amid indications that some firms have been defaulting on their obligations.
The development comes at a time several companies have been accused of failing to remit pensions to the authority.
Experts say the situation has also worsened due to informalisation of the economy. The government set up a compulsory national social security pension scheme administered by NSSA aimed at protecting employees and their families.
It is compulsory that all employees contribute to the scheme, regardless of whether an employee is covered by a private pension scheme or not.
“The National Social Security Authority’s inspectorate will be carrying out door-to-door business inspection for all employers of labour from February 1 to March 31 2013 to verify business compliance with NSSA records and contributions compliance for the year ended December 31 2012 in terms of the National Pensions and other benefits scheme (SI 393/93) and accidents prevention and Workers’ Compensation Insurance Fund,” NSSA said in a statement.
“Clients are strongly urged to ensure that their contributions and premiums records are up to date. It is a statutory requirement that all contributions and premiums are remitted to the Authority by the 10th of every month. Failure to pay contributions and premiums by the 10th of each month does not only attract 50% surcharges and penalties, but it may also attract criminal sanctions.”
The National Pension Scheme is based on a 50/50 contribution from employers and employees. It is a compulsory requirement that every working Zimbabwean above the age of 16 years and below the age of 65 who is in a permanent, seasonal, contract or temporary joins this scheme and contribute towards it.
The authority said firms that were in arrears were encouraged to come up with payment plans, failure of which surcharges and penalties would be levied.