Andrew
Sharleen Mohammed
The National Social Security Authority (NSSA) is finalising setting up a pension fund for workers in the informal sector, with a trial run expected early next year.
The scheme is designed to provide universal social security cover for millions of workers in the sector.
According to the 2022 Second Quarter Labour Force Survey commissioned by the Zimbabwe National Statistics Agency (ZimStat), about 46 percent of the country’s working population – estimated at 3,3 million – is employed in the informal sector.
NSSA director of social security, Mr Shepherd Muperi, told The Sunday Mail that members of the scheme will make monthly contributions.
“Unlike the current scheme for the formally employed, where employees make ratio-based contributions to NSSA, the new scheme will be financed by contributors alone,” said Mr Muperi.
“There will be inbuilt flexibility on contributions payment under the informal sector scheme, depending on members’ circumstances.”
The scheme, he said, will extend social security coverage to millions of workers.
It will also be structured based on findings of an ongoing survey commissioned by ZimStat to identify priority social security needs of the sector.
Those who make the voluntary contributions to NSSA would receive benefits upon reaching the public sector retirement age of 65.
In the case of death, surviving spouses and close relatives could also benefit.
“People in the informal sector still require and will need, at a later stage in their lives, the minimum income guarantee social security provides.
“Tapping into this market requires tailoring our products to suit the very informal sector, where incomes are typically lower, come at irregular periods and are not paid through normal channels,” Mr Muperi explained.
He said the informal sector, which presently does not have social security products catering for retirement and savings, requires flexible, diversified and cost-effective payment channels.
“Most of the informal sector workers have no fall-back income in the event of an injury at work or reaching mature ages, when they can no longer work and raise sufficient income,” he added.
Vendors Initiative for Social and Economic Transformation (VISET) president, Mr Samuel Mangoma, welcomed the proposed scheme.
“I want to commend the Government for this initiative, which caters for our special needs. In the event of death, the surviving spouse and close relatives also benefit from the scheme,” he said.
“We love this initiative as it makes sure that the elderly, who spent all of their lives working in the informal sector, are cared for, even in old age.”
Zambia, South Africa, Kenya, Ghana and Uganda have similar schemes.
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