The PF Government has proposed to increase pension contributions to the National Pensions Scheme Authority from the current 5% to 10%.
Currently, the employer and the employee contribute 10% of their gross monthly earnings to NAPSA, a mandatory pension scheme.
According to a proposal from the Ministry of Labour and Social Security, their monthly contributions will rise to 10% employer and 10% employee.
The proposal also seeks to limit the pension schemes allowed to exist in Zambia to have just one, NAPSA.
This will see the abolishment of in-house pension schemes from both public and private sectors.
The proposals are part of government plans to reform the pension sector which government said have reached an advanced stage.
Details of these reforms were shared at a recent Tripartite Consultative Labour Council meeting in Lusaka.
The government also wants to collapse the Public Service Pensions Fund and the Local Authority Superannuation Fund and have only NAPSA existing.
But the Zambia Federation of Employers has raised concern over the proposals.
In a letter addressed to its members inviting them for a consultative meeting and seen in Lusaka, Federation Executive Director Harrington Chibanda said the Federation will come up with a position paper after the consultative meeting.
“At the last Tripartite Consultative Labour Council held in June 2nd 2019, the government informed the Tripartite Partners that among the many proposals in the reforms is the collapsing of the Public Service Pensions Fund and the Local Authority Superannuation Fund and the proposal to increase pension contributions to the National Pensions Scheme Authority from the current 5% employer and employee contributions to 10% employer and 10% employee,” the letter read in part.
The proposal will be extended to the private sector to do away with private occupational pensions schemes and only contribute to NAPSA.
“The Federation would like to undertake consultations on the said matters in preparation for a position paper before the Minister of Labour and Social Security announces the next Tripartite Consultative Meeting. Consultative Meeting to be held on Friday, 26th July 2019 at Radisson Blu from 08:30 Hours,” it read.