Pension scheme for informal sector to be ready by year end, says NSSA

Pension scheme for informal sector to be ready by year end, says NSSA

HARARE, April 11 (The Source) – State-run pension fund, the National Social Security Authority (NSSA) expects its voluntary pension scheme for the informal sector to be running by year end, an official said.  

The scheme would have benefits that include a retirement pension, survivor’s pension, injury at work compensation and funeral grant.

NSSA regional manager Agnes Chikwavaire told a meeting of informal sector representatives on Tuesday that the amounts contributed to the scheme will vary depending on what the contributors afford.

“We now want to extend coverage to the informal sector where they will voluntarily contribute to NSSA to cover their future. We received a positive response from the survey we conducted. People understand the importance of social security and we expect them to register in their numbers,”  Chikwavaire told The Source.

According to a survey by NSSA, 72 percent of people in the informal sector do not contribute to any social security scheme.   

The sector makes up 70 percent of Zimbabwe’s economic activity and contributes more than 50 percent to the gross domestic product according to official statistics.