- January 17, 2024
- Posted by: Simangolwa Muyunda
- Category: General
The National Pension Scheme Authority (NAPSA) has unveiled a significant initiative to provide relief for employers across the country. NAPSA Director General, Muyangwa Muyangwa, announced the introduction of penalty waivers aimed at offering financial respite to employers by allowing them to settle outstanding contributions.
During a press conference held in Lusaka on 17th January 2024, Mr. Muyangwa highlighted that the new regulation empowers NAPSA to grant a 100% waiver for penalties related to the Covid-19 period and up to 75% for penalties incurred outside this period.
The waiver covers penalties accumulated both before and after the enactment of the National Pension Scheme regulations in 2024, subject to specified conditions. Employers seeking the penalty waiver must first settle all outstanding principal contributions.
To streamline the application process, NAPSA will facilitate online submissions through its e-SERVICES portal.
Mr. Muyangwa outlined that for penalties incurred before December 6, 2022, the waiver relief will be applicable for up to two years from the date of the penalty waiver regulations’ enactment.
“For penalties incurred after this date, the relief will persist until the revocation or amendment of the regulations, with eligibility criteria defined in the regulations,” said, Mr. Muyangwa.
Emphasizing the government’s broader agenda to promote investments and job creation by reducing the cost of doing business, Mr. Muyangwa positioned the penalty waiver as a crucial component.
The Director General urged employers, including those with domestic workers, to capitalize on this one-time opportunity to regularize their statutory contributions, avoiding potential court actions initiated by NAPSA for debt recovery post the penalty waiver period.
Highlighting the legislative backing of this relief measure, Honourable Brenda Tambatamba, the Minister of Labour and Social Security, officially signed the National Pension Scheme Penalty Waiver Regulations of 2024 into law on January 8, 2024.
“These regulations define the terms and conditions under which NAPSA is expected to implement the penalty waiver, aligning with the government’s commitment to facilitating economic stability and supporting businesses in challenging times,” Mr. Muyangwa said.