Financial Expert, Yusuf Dodia says the National Pension Scheme Authority (NAPSA)’s monthly contribution which has increased to 20%, will affect worker’s take-home pay especially for low-income earners.
The adjustment, announced by NAPSA, sets the maximum monthly deductible contribution for employees in 2025 at K1,708.20, based on an average monthly income of K8,541 and this means that workers across income brackets are required to contribute 20% of their earnings to the pension scheme.
But Speaking in an interview with RCV News in Lusaka today, Mr. Dodia said that the increased NAPSA contribution may also unfairly affect informal sector workers and persons with disabilities who are already struggling financially.
“This increase may deepen the financial burden on those struggling to make ends meet,” said Mr. Dodia.
He stressed the importance of ensuring that the additional funds collected through the higher contributions are managed with transparency and accountability
Mr. Dodia further called for regular updates on investment returns and benefit payouts, adding that contributors’ funds should be invested in a diversified portfolio of low-risk assets to safeguard their interests.
By Elizabeth Mutale
