- April 16, 2025
- Posted by: Hope Kayuni
- Categories: General, News
The National Pension Scheme Authority (NAPSA) is pleased to announce the extension of the penalty waiver period from two (2) years to three (3) years, following the issuance of the National Pension Scheme (Penalty Waiver) (Amendment) Regulations No. 10 of 2025. These regulations, issued by the Hon. Brenda Mwika Tambatamba, Minister of Labour and Social Security, amend the Penalty Waiver Regulations which were first issued on 8th January 2024.
The extension of the penalty waiver includes adjustments to the tenure for various categories of waivable penalties as follows:
· General Waiver – Penalties Incurred Prior to 6th December 2022 (Category One)
o The 75% penalty waiver, initially scheduled to run from January 2024 to January 2025, will now extend until January 2026.
o The 60% penalty waiver period, originally set to run from January 2025 to January 2026, will be applied from January 2026 to January 2027.
· COVID-19 Period – 14th March 2020 to 8th September 2022
o The 100% penalty waiver for penalties incurred during the COVID-19 period, initially running from January 2024 to January 2025, will be extended to January 2026.
o The 75% penalty waiver for the same period, originally set to run from January 2025 to January 2026, will now apply from January 2026 to January 2027.
· Special Waiver – Penalties Incurred After 6th December 2022 (Category Two)
o The treatment of penalties incurred after 6th December 2022 will remain unchanged, with no adjustments to the eligibility criteria.
As of 13th April 2025, a total of K1.73 billion in penalties has been waived, benefiting 7,240 penalty waiver applications. This represents a significant milestone in the ongoing penalty waiver initiative, which commenced on 8th January 2024.
The extension of the waiver period is in response to the economic challenges faced by many businesses, particularly following the drought and energy crisis of 2024, which strained cash.