1. Introduction
Every employer in Zimbabwe is required by law to contribute to the National Social Security Authority (NSSA) on behalf of their employees. These contributions fund retirement pensions, survivor benefits, and accident compensation.
For 2025, NSSA has maintained the combined contribution rate of 9% under the Pension and Other Benefits Scheme, shared equally between the employer and the employee. The USD 700 monthly insurable earnings ceiling introduced in 2024 remains in force.
This guide explains exactly how to calculate these contributions, giving you practical examples, step-by-step formulas, and compliance best practices.
2. Understanding the NSSA Contribution System
NSSA operates two distinct schemes:
- Pension and Other Benefits Scheme (POBS) — provides old-age, invalidity, and survivor’s pensions, as well as funeral grants.
- Accident Prevention and Workers’ Compensation Scheme (APWCS) — protects employees against work-related accidents, diseases, or death.
While the pension scheme requires contributions from both employer and employee, the accident prevention scheme is paid only by the employer.
This article focuses mainly on calculating the Pension and Other Benefits Scheme contributions, which are the most common deductions handled in payroll.
3. NSSA Contribution Rates for 2025
For 2025, the rates are as follows:
- Employer contribution: 4.5% of gross insurable earnings
- Employee contribution: 4.5% of gross insurable earnings
- Total contribution: 9% of insurable earnings
However, these rates apply only up to the USD 700 insurable earnings ceiling. This means any salary amount above USD 700 per month is not subject to additional NSSA deductions.
4. The USD 700 Insurable Earnings Ceiling Explained
The ceiling represents the maximum amount of an employee’s salary that can be used to calculate NSSA contributions.
For example:
- If an employee earns USD 400, contributions are calculated on the full USD 400.
- If an employee earns USD 700, contributions are calculated on USD 700.
- If an employee earns USD 1 000, contributions are capped at USD 700 — anything above that is ignored for NSSA purposes.
This ceiling ensures that contribution levels remain affordable and consistent with average national earnings.
5. Step-by-Step Calculation Formula
The general formula for NSSA contributions is:
Contribution=(Gross Monthly Earnings or Ceiling, whichever is lower)×Rate\text{Contribution} = (\text{Gross Monthly Earnings} \text{ or } \text{Ceiling, whichever is lower}) \times \text{Rate}Contribution=(Gross Monthly Earnings or Ceiling, whichever is lower)×Rate
Step 1: Determine the employee’s gross monthly earnings. Step 2: Apply the USD 700 ceiling if earnings exceed that amount. Step 3: Multiply by 4.5% to find the employee’s contribution. Step 4: Multiply by another 4.5% for the employer’s share. Step 5: Sum the two amounts to get the total monthly remittance to NSSA.
6. Practical Examples of NSSA Calculations
Example 1: Employee earning USD 400 per month
- Insurable earnings: USD 400
- Employer contribution: 4.5% × 400 = USD 18
- Employee contribution: 4.5% × 400 = USD 18
- Total NSSA contribution: USD 36
Example 2: Employee earning USD 700 per month
- Insurable earnings: USD 700
- Employer contribution: 4.5% × 700 = USD 31.50
- Employee contribution: 4.5% × 700 = USD 31.50
- Total NSSA contribution: USD 63
Example 3: Employee earning USD 1 200 per month
- Insurable earnings capped at USD 700
- Employer contribution: 4.5% × 700 = USD 31.50
- Employee contribution: 4.5% × 700 = USD 31.50
- Total NSSA contribution: USD 63
Example 4: Employee earning ZWL or ZiG equivalent
If an employee is paid in local currency, convert their earnings into USD at the official exchange rate for that month before applying the 4.5% calculation.
7. Calculating Employer Totals for Payroll Submission
Once you have calculated individual contributions for each employee, the employer must total both shares for remittance.
Total Payable to NSSA=∑(Employer Share+Employee Share)\text{Total Payable to NSSA} = \sum (\text{Employer Share} + \text{Employee Share})Total Payable to NSSA=∑(Employer Share+Employee Share)
For a company with 10 employees each earning USD 700:
- Employer share: USD 31.50 × 10 = USD 315
- Employee share: USD 31.50 × 10 = USD 315
- Total monthly remittance: USD 630
Employers are responsible for sending the combined amount to NSSA and keeping proper payroll records.
8. Payment Deadlines and Compliance
Employers must remit NSSA contributions by the 10th day of the following month. Payments can be made through bank transfer, electronic platforms, or at NSSA offices.
Late remittances attract penalties and interest, while persistent non-compliance may lead to prosecution.
To remain compliant:
- Register each employee with NSSA upon hiring.
- Submit monthly contribution returns accurately.
- Retain proof of payment and correspondence with NSSA.
- Display the current NSSA registration certificate at your business premises.
9. The Employer’s Responsibility for the Accident Prevention and Workers Compensation Scheme (APWCS)
While employees do not contribute to this scheme, employers must pay a premium based on their industry risk category.
Low-risk sectors such as retail, education, or finance may pay around 0.5% to 1% of the wage bill, while high-risk industries such as mining and construction can pay several percentage points more.
These rates are reviewed periodically by NSSA, and employers are notified in writing. Always check that your business classification is accurate to avoid over- or under-payment.
10. Integrating NSSA into Payroll Systems
Accurate and automated payroll systems help prevent calculation errors and missed deadlines. Employers can set up their accounting or payroll software to automatically apply the 4.5% rate and ceiling limit.
Key best practices include:
- Updating exchange rates monthly if paying in ZWL or ZiG.
- Storing historical contribution data for audits.
- Generating payslips that clearly show the employee’s NSSA deduction.
- Reconciling payroll records with NSSA statements quarterly.
Automation not only ensures compliance but also saves administrative time and reduces the risk of penalties.
11. Common Mistakes Employers Should Avoid
- Ignoring the USD 700 ceiling: Contributions above this limit are not required.
- Using unofficial exchange rates: Always use the official interbank rate when converting local salaries.
- Late submissions: Missing the 10th-day deadline can lead to interest charges.
- Incorrect employee classification: Make sure all qualifying employees are registered under NSSA.
- Failure to separate the schemes: Remember that APWCS is employer-only, while POBS is shared.
Avoiding these mistakes ensures smoother operations and compliance with labour regulations.
12. Benefits of Accurate NSSA Calculations
Accurate NSSA contributions are more than a legal requirement — they are a commitment to employee welfare and financial stability. Correct calculations:
- Guarantee employees’ access to retirement, survivor, or invalidity benefits.
- Protect employers from legal disputes and audits.
- Strengthen the company’s reputation for compliance and responsibility.
- Contribute to national social protection goals.
Ultimately, proper compliance supports both business growth and worker dignity.
13. Summary Table of NSSA 2025 Pension Scheme
Category
Contribution Rate
Contributor
Ceiling Applied
Payment Due Date
Pension and Other Benefits Scheme
4.5%
Employer
USD 700
10th of next month
Pension and Other Benefits Scheme
4.5%
Employee
USD 700
10th of next month
Accident Prevention and Workers Compensation Scheme
Variable (by risk)
Employer
Wage bill
10th of next month
14. Conclusion
Calculating NSSA contributions accurately is one of the most important payroll duties for every Zimbabwean employer. The 2025 NSSA rates continue to use a 9% total contribution (4.5% employer + 4.5% employee) and a USD 700 ceiling, ensuring affordability and predictability across industries.
Employers who follow the calculation steps, adhere to deadlines, and maintain proper documentation protect both their employees and their businesses.
NSSA is not merely a statutory cost — it’s a long-term investment in the social and economic well-being of Zimbabwe’s workforce.
