Changes to Statutory Deductions in Zambia for 2025: What Employers Need to Know

Zambia has introduced key statutory updates effective 1st January 2025, impacting National Pension Scheme Authority (NAPSA) contributions. These changes reflect adjustments in line with economic trends and the revised National Average Earnings (NAE).

New NAPSA Contribution Ceiling

As part of these updates, the maximum deductible contribution ceiling for both employees and employers has increased. Here’s what you need to know:

1. Revised Contribution Ceiling: Increased from ZMW 29,816.00 in 2024 to ZMW 34,164.00 in 2025.
2. Updated Monthly Contributions:
   • Employee Contribution: ZMW 1,708.20 (5% of the ceiling)
   • Employer Contribution: ZMW 1,708.20 (5% of the ceiling)
   • Total Contribution: ZMW 3,416.40

This adjustment follows the increase in the National Average Earnings (NAE) to ZMW 8,541.00 for 2025, up from ZMW 7,454.00 in 2024, as reported by the Zambia Statistics Agency.

Contribution Rate Remains Unchanged

The total monthly NAPSA contribution rate remains at 10% of an employee’s gross salary, shared equally between the employer and the employee at 5% each.

What Employers Should Do

To stay compliant with these statutory changes, employers should:

1. Update payroll systems to reflect the new contribution ceiling.
2. Communicate the changes to employees, ensuring they understand the impact on their deductions and benefits.
3. Seek support from NAPSA for any clarifications or guidance on implementation.

By staying informed and proactive, employers can ensure smooth payroll processing and compliance with Zambia’s updated statutory requirements.

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