Online Reporter
Business Reporter
THE National Social Security Authority (NSSA) will raise monthly pension payouts across its mandatory social protection schemes by nearly 30 percent, effective October 1, a senior official has said.
NSSA general manager Dr Charles Shava confirmed the planned upward adjustment, saying the payout increases aim to expand income support and enhance social safety nets for beneficiaries.
Under the primary Pension and Other Benefits Scheme (POBS), which currently supports about 250 000 pensioners and surviving dependants, monthly baseline payouts will rise to US$90 from US$70.
Monthly disbursements under the Accident Prevention and Workers Compensation Scheme (APWCS), which serves about 8 000 beneficiaries recovering from workplace injuries or occupational disabilities, will increase to US$130 from US$100.
“We are increasing these payouts to ensure our beneficiaries receive meaningful social protection,” Dr Shava said.
“Our target is to continuously expand income support and strengthen social safety nets for all our beneficiaries.”
Dr Shava said the upward revision of beneficiary payouts followed a 2025 statutory actuarial valuation that confirmed the financial health and long-term sustainability of its social security schemes.
According to the evaluation, both POBS and APWCS will remain fully operational and financially secure.
Gains in operational efficiency reduce the POBS expense ratio to 13,95 percent, leaving the scheme sufficiently capitalised to support targeted benefit increases, including a higher minimum retirement pension, while maintaining strong short- to medium-term liquidity, Dr Shava said.
APWCS was confirmed to be surplus-funded, providing the authority with the capacity to absorb improved benefit packages across multiple economic scenarios without compromising its balance sheet.
This was attributed to the expansion of NSSA’s overall asset base, robust contribution collections, inflation-beating investment returns as well as streamlined administrative costs.
Established under the NSSA Act and operating under the oversight of the Ministry of Public Service, Labour and Social Welfare, NSSA forms the backbone of Zimbabwe’s national social security framework.
The institution safeguards formal sector workers and their dependants against financial loss stemming from retirement, invalidity, work-related injuries or death.
To fulfil this mandate, NSSA manages two core statutory funds.
Introduced in October 1994, the POBS provides long-term income replacement through retirement pensions, invalidity allowances, survivor benefits and funeral grants.
It is financed by a statutory monthly contribution of 9 percent of insurable earnings, split equally between employers (4,5 percent) and employees (4,5 percent).
APWCS was established in January 1990 and is a fully employer-funded scheme that protects workers disabled in occupational accidents while enforcing workplace health and safety standards nationwide.
To sustain meaningful benefit payouts over the long term and preserve institutional capital against inflation, NSSA
has aggressively expanded its role as one of Zimbabwe’s primary institutional
investors.
Total investment income generated by the fund has surged from US$3 million in 2022 to approximately US$40 million currently.
The authority holds strategic equity investments across companies listed on the Zimbabwe Stock Exchange.
Over the past year, NSSA has actively increased its equity stakes across key blue-chip counters listed on the Zimbabwe Stock Exchange, including beverage giant Delta Corporation, financial services group CBZ Holdings and conglomerate Innscor Africa Limited.
Beyond capital markets, NSSA has actively deployed resources into the real economy since 2022.
By financing key infrastructure projects, including primary road networks, commercial real estate, residential housing delivery and renewable energy developments, the fund continues to generate sustainable commercial yields to support its growing social payout obligations.
Its balance sheet has grown to about US$1,3 billion over the last three years, from about US$300 million in 2022.
NSSA is finalising a major reform programme to extend pension and social security coverage to over three million informal sector workers in Zimbabwe.
The targeted groups include vendors, cross-border traders, self-employed individuals and small-scale traders.
Contributions will be modelled around flexible or voluntary contributions tailored to irregular informal incomes.
The framework is being developed using feasibility studies and technical assistance from the International Labour Organisation (ILO) and is benchmarked against nations like Rwanda, Ghana and Uganda.
The objective of the programme is to provide retirement safety nets for groups like domestic and informal workers historically excluded from statutory
schemes like the pension and other benefits scheme.
