THE National Social Security Association (NSSA) has revealed that the number of companies paying their subscriptions has dropped by ten percent since the onset of the COVID-19 pandemic.
The above was revealed by NSSA acting director of contributions, collections and compliance, Agnes Masiiwa, during a journalists training webinar early this week.
Masiiwa said 28 000 companies were currently on the NSSA register.
She also said before the COVID-19 reared its head, only sixty percent of the companies were in compliance.
However, the number had since dropped by a 10 percent margin.
“We have 28 000 companies that have registered with NSSA, but only sixty percent have been in compliance. But since the (advent) of COVID-19, the number dropped to fifty percent,” she said.
The NSSA acting director said the number of contributors has continued to decrease due to the closure of companies and a non-performing economy.
Masiiwa said most small companies were currently not complying with the NSSA regulations.
She also acknowledged that government was NSSA’s largest contributor, bringing in more than a third of their total revenue.
NSSA’s chief security officer, Tambudzai Jongwe, said the organisation
currently had a membership of approximately three million workers who are regular contributors and, therefore, potential recipients of pensions.
According to Jongwe, the social security organisation is currently giving pensions to over 200 000 people.
NSSA was set up by government through an Act of Parliament in 1989 in order to administer social security schemes in the country.
The government introduced the compulsory pension scheme with aim to protect workers and their families after the breadwinners reached retirement age.
According to the laws of the country, it is compulsory that all employees contribute to the scheme, regardless of whether they are covered by a private pension scheme or not.