Zambia - Revision in Contribution Ceiling for 2024 - effective 1 January 2024

Zambia - Revision in Contribution Ceiling for 2024 - effective 1 January 2024

NAPSA wishes to advise that the maximum monthly deductible employee’s contribution amount for the year 2024 has been revised to K 1,490.80 and correspondingly, the maximum monthly payable employee and employer statutory contribution amount has moved to K 2,981.60.

The above adjustment follows changes in the National Average Earnings (NAE) figure as determined by the Zambia Statistics Agency. The NAE figure for 2024 has increased to K 7,454.00 from K 6,710.00 in 2023.                                                                      

The contribution rate, however, remains unchanged at 10 percent of an employee’s monthly gross earnings and for NAPSA purposes, earnings refer to any benefit given by an employer in exchange for the employee’s service. Earnings therefore, include basic salary, bonuses, commission, severance pay, overtime allowance, leave allowance, acting allowance, commuted leave days etc.

Ceiling value x 5%: K29,816.00 x 0.05 = K1,490.80 for the employee 

Ceiling value x 5%: K29,816.00 x 0.05 = K1,490.80 for the employer

Total contribution: K2,981.60

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