Informal sector requires social security:NSSA

THE National Social Security Authority (NSSA) has said informal traders need to get social security, as the sector constitutes over 90% of the working class.

BY TATIRA ZWINOIRA

Speaking at the inaugural Social Protection Conference and Appreciation Awards last week in Harare, NSSA business development executive Happy Mutungwazi said the informal sector was a large productive area and offered an extra source of revenue if they get social security.

“The majority of our employees or the working class which according to Zimstat is 94,5% is in the informal sector and they are deprived of social security… so social security does protect members and their families. If Amai (for example) who is selling sweets out there is knocked down by a car, what happens to her family, the siblings? It means they will revert back to poverty; this is basically why we need social security, to enhance social cohesion,” he said.

“Many people have amassed resources the world over due to social cohesion like what they call rounds, for example, funeral coverage which is basically a form of social cohesion.”

He said the informal sector also facilitated economic development, citing South Africa as an example which has leveraged on pensions held in offshore accounts to keep their currency relatively strong.

“The informal sector workers are typically exploited. They toil and work for the nation but no one will recognise them into their own age. No one will recognise their family if they pass on. If we continue to ignore this sector which is providing this economy with much needed productivity should we continue ignoring it?” Mutungwazi said.

Of the 5,9 million informal traders, vendors, according to the National Vendors’ Union of Zimbabwe (Navuz), make up 2,2 million who generate an average $3,96 billion in annual revenue.

As such, if vendors were under NSSA’s Pension and Other Benefits Scheme for employers and employees at 6% of basic wage/salary, the contribution from the informal sector could be $237,6 million pension revenue to NSSA.

Public Service, Labour and Social Welfare deputy minister Tapiwa Matangaidze said government envisaged a voluntary contributory scheme from the informal sector for social security coverage and understood the concerns raised by the informal sector.

Among those concerns, he said he knew the informal sector players were worried about getting pension pay-outs, paying pensions on the stipulated dates and need to help informal players familiarise with using cashless solutions.

“Through NSSA, government envisages a voluntary contributory scheme for the informal sector and it is hoped that with an understanding of social protection, many workers in the informal sector will participate in this scheme and guarantee themselves a secure future,” he said.

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7 Comments

  1. lets not talk in terms of revenue to NSSA. How many pensioners are enjoying NSSA payouts today the 4th of Oct 2017? the scheme should be a win win situation not one sided,

  2. So only about 5% of the workers in formal employment. Shows how much Mugabe has destroyed the country. And yes Nssa has to find ways to get those people social security. How they will do it is a mystery to me.

  3. “If Amai (for example) who is selling sweets out there is knocked down by a car, what happens to her family, the siblings? It means they will revert back to poverty” I stopped reading after that statement, I mean who says something so stupid? That lady selling sweets is ALREADY in poverty along with her family, hence selling sweets in the first place. Majority of informal traders are surviving on hand to mouth and have very little money to even think about to contributing to NSSA, that much is so obvious.

  4. NSSA is a Legalised Ponzi Scheme

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  7. Comment…NSSA ngaiongorore macompanies ose arikuoperata muZimbabwe kuti Mari dzavarikubatira vashandi dzirikusvitswa kuNSSA here. Vashandi vanofanira kufila maP6 forms vopiwa RS no. RS no. Mushandi anofanira kuva neRS no. Kwete kuti mushandi achibatirwa maripapay yake asina. RS no. Chirongwa cheNSSA chakanaka zvkuru nokuti ndiyo insurance yemushandi kana achinge akuvara kana kurwariswa nebasa uyezve kuwaniswa cheuviri kana asiya basa akura. Zvino kana mushandi achibatirwa Mari yake yaari kuzvisevenzera asi Mari yacho isinga svitswe kuNSSA zvinozofamba sei.

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