National Pension Scheme Authority (NAPSA) ceiling for 2026

The Zambian National Pension Scheme Authority (NAPSA) has published the revised maximum monthly deductible employee contribution amount for the year 2026.

Effective 1 January 2026, the new NAPSA earnings ceiling is K37 236 per month.

At the statutory contribution rate of 10%, shared equally between employee and employer:

• Employee contribution (5%): K1 861.80 per month
• Employer contribution (5%): K1 861.80 per month
• Total maximum monthly contribution: K3 723.60

The contribution rate remains unchanged at 10% of the employee’s monthly gross earnings, subject to the statutory earnings ceiling above.
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Zambia 2026 Statutory Updates FAQs

Q: What is the new NAPSA contribution ceiling for 2026?A: Effective January 1, 2026, the National Pension Scheme Authority (NAPSA) earnings ceiling has been revised to K37,236 per month.

Q: How much will employees and employers contribute to NAPSA under the new limit?A: With the new ceiling of K37,236:

• Employee Share (5%): The maximum deduction is K1,861.80 per month.
• Employer Share (5%): The maximum contribution is K1,861.80 per month.
• Total Monthly Contribution: The combined maximum is K3,723.60.

Q: Have there been changes to the Turnover Tax for small businesses?A: Yes. The 2026 Budget proposes increasing the Turnover Tax and Rental Income Tax exempt threshold from K1,000 to K2,500 per month. This measure aims to provide relief to small businesses and low-income earners.

Q: Are there any penalties for late Turnover Tax payments?A: The penalty for late Turnover Tax payment has been reduced from 5% to 0.5% per month (or part thereof) to encourage voluntary compliance.

Q: Are there new incentives for employers hiring persons with disabilities?A: Yes. The allowable income tax deduction for companies that employ persons with disabilities is proposed to increase from K2,000 to K2,500 per annum.

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