Two statutory schemes take contributions from Zambian employees, and they cover different things.
NAPSA
The National Pension Scheme Authority administers the mandatory national pension. Both employee and employer contribute, and the contribution is subject to a ceiling.
NAPSA contributions build your entitlement to retirement, invalidity and survivors' benefits.
NHIMA
The National Health Insurance Management Authority. Contributions fund access to health services under the national health insurance scheme.
PAYE
Income tax deducted at source and remitted to the Zambia Revenue Authority.
Private pension schemes are optional
This is a point of frequent confusion. Private pension and provident funds are optional, not a substitute for NAPSA.
They are regulated under the Pension Scheme Regulations Act (Chapter 255), which provides prudential supervision of all pension schemes except NAPSA itself, and protects members' rights and benefits.
Can a pension replace gratuity?
Where an employer has established a pension scheme approved by the relevant Minister, retirement benefits are paid in accordance with that scheme.
That arrangement affects the terminal benefits position, so it is worth knowing whether your employer operates an approved scheme.
Verify your contributions
You can check your NAPSA record directly. A deduction appearing on your payslip does not prove the employer remitted it.
Gaps in your NAPSA record reduce your eventual benefit, and they are far easier to correct while you are still employed.
What to check on your payslip
- That NAPSA and NHIMA deductions appear
- That basic pay is stated separately — gratuity is calculated on it
- That PAYE is deducted correctly
- That no unauthorised deduction is present
Why basic pay matters
Because statutory gratuity is calculated as a percentage of basic pay earned during the contract, the basic figure on your payslip is the number that determines a substantial part of your terminal benefit.