Guest Contributor | Aug 22, 2017 | 0
Social Security pays out higher benefits
The adjustments however will only affect employees whose earnings are above the monthly basic wage of N$6000. Members earning less will not see any contribution increment. The maximum contribution per employee which is currently N$108, (N$54 by employee and N$54 by the employer) will be increased to N$162 where both employer and employee will contribute N$ 81 for a member earning above N$9000 per month. In essence, the wage ceiling is being adjusted upwards with an additional N$3000, which will result in a contribution increase of N$27 to both the employee and the employer.
For employees earning below N$9000 per month, their contributions will be calculated on a total formula of 1, 8%, with both employer and employee contributing 0.9% respectively. Thus, an employee earning N$7000 per month will contribute N$63 and the employer also N$63, bringing the total contribution to N$126 to the Social Security Commission.
Announcing the adjusted contributions, Chief Executive Officer of Social Security Kenandei Tjivikua said the Commission will embark on a media campaign to sensitise employees and their employers about the contribution changes, while written correspondences will be forwarded to all the employers to advise them of the intended changes.
“Social Security Commission is mindful that this moderate wage ceiling adjustment may directly impact the budgets of employees and employers and therefore the increments will only be implemented five months from now, to ensure those employees and their employers make adequate budgetary provision for this increase,” Tjivikua said.
The Social Security Commission has three funds, namely the Employee Compensation Fund, the Development Fund and the Maternity leave, Sick leave and Death Benefits Fund, with over 440,000 employees registered with the commission. According to the Social Security Commission, a total of N$85.8 million worth of claims were distributed during the first six months of 2012.