News

Public service workers to pay pension in foreign currency

The Treasury has declared that all public service workers who earn in foreign currency would be required to pay their pension contributions in the same currency, beginning this year, according to the Public Service Commission (PSC).

If the workers earn in both foreign currency and local Zimbabwe Gold (ZiG) currency, they would use the same ratio in making their contributions.

PSC Secretary Dr Tsitsi Rosemary Choruma-Dozwa stated in a letter dated 28 May 2024 that the USD National Social Security Authority (NSSA) contribution would be implemented following the conversion of USD Covid-19 and cushioning allowances to pensionable emoluments with effect from 1 January 2024.

This development is part of the provisions of Statutory Instrument (SI) 169 of 2021 on the public sector employees with effect from 1 January 2024. 

Section 8(b) (4) provides that, “Any person in Zimbabwe who earns remuneration in a currency other than that of Zimbabwe shall be required to pay his or her contribution  in foreign currency and in cases where individuals earn remuneration in a combination of foreign currency and Zimbabwean Dollars, he or she shall pay contribution the same currency ratio.”

“Please note that the outstanding contributions should be staggered in three months, commencing in 2024,” said the PSC Secretary.

Dr Choruma-Dozwa also wrote to the government’s Paymaster advising of the same instruction. 

This development arose after NSSA Acting General Manager, Dr Charles Shava wrote to the Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare on 24 January 2024, , requesting assistance to notify the PSC that following the conversion of the USD Covid 19 Allowance for public service employees into a pensionable salary, NSSA advised on the computation of NSSA contribution as guided by Section 8(b) of SI 169 of 2021.

The NSSA acting General Manager said this request “would go a long way in sustaining the viability of the NSSA scheme.”

This then prompted the Permanent Secretary in the Ministry of Public Service, Labour and Social Welfare – Simon Masanga with the Permanent Secretary in the Ministry of Finance and Economic Development – George Guvamatanga to write to the secretary of the PSC requesting the same order.

“Following the conversion of the US$ Covid-19 and US$ cushioning allowances for Public Service employees into a pensionable salary, the NSSA has advised that the computation of NSSA contributions is guided by Section 8(b) of SI 169 of 2021,” read the letter.

“Given this development, NSSA is requesting the commission to implement the provision of SI 169 of 2021 with effect from 1 January 2024 to enable the viability of the NSSA schemes.”

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button