STRUCTURE & CORE FUNCTIONS

SOCIAL SECURITY DEPARTMENT

CONTENTS
OVERVIEW OF THE DEPARTMENT OF SOCIAL SECURITY.
SOCIAL SECURITY SYSTEM IN ZAMBIA
STAKEHOLDERS
PENSION SCHEMES UNDER THE MLSS
WORKERS COMPENSATION FUND CONTROL BOARD (WCFCB)
PENSION SCHEMES OUTSIDE THE MLSS
PUBLIC SERVICE PENSION FUND (PSPF)
LOCAL AUTHORITIES SUPERANNUATION FUND (LASF)
OCCUPATION PENSION SCHEMES
PENSIONS AND INSURANCE AUTHORITY (PIA)
LEGISLATIVE FRAMEWORKS
PROGRAMMES

 

OVERVIEW OF THE DEPARTMENT OF SOCIAL SECURITY

The Department of Social Security derives its mandate from the Government Gazette Notice Number 46 of January 24 1992 which directed the Ministry to be responsible for matters pertaining to Social Security in the Country. In order for the Department to execute its mandate it is headed by a Director and has two functional sections namely; Legislation and Research and Inspection and Enforcement. The specific functions of the department include:

  • - Formulation of appropriate social security policies,
  • - Monitoring and evaluation of social security schemes,
  • - Coordination of effective development and application of appropriate social security research,
  • - Undertaking effective development and application of appropriate social security awareness programmes, and
  • - Maintenance of an effective social security information system.

SOCIAL SECURITY SYSTEM IN ZAMBIA

The Social Security is predominantly of a social insurance model limited to the provision of protection against loss or reduction of income resulting from retirement, disability and survivorship. This coverage however is limited to the formal sector. There are basically 4 statutory schemes and these are the National Pension Scheme Authority, Local Authorities Superannuation Fund, Public Service Pension Fund and the Workers Compensation Fund Control Board, further there are also a number of occupational pension schemes. The contributions in these schemes is basically both the employer and the employee, however the Workers compensation fund control board contributions is entirely on the employer

 

STAKEHOLDERS

The institutions collaborating with the department include: Ministry of Finance and National Planning, Ministry of Local Government and Housing, Ministry of Community Development and Social Services, Ministry of Health, Ministry of Justice, National Pension Scheme Authority (NAPSA), Workers Compensation Fund Control Board (WCFCB) Public Service Pension Fund (PSPF), Pension and Insurance Authority (PIA), Local Authorities Superannuation Fund (LASF) and Occupational Pension Schemes.

 

PENSION SCHEMES UNDER THE MLSS

The Department is responsible for matters pertaining to Social Security in Zambia through the following pension Schemes:
National Pension Scheme Authority (NAPSA): The National Pension Scheme Authority (NAPSA) was established by an Act of Parliament in 1996, to replace the Zambia National Provident Fund, which had revealed a multitude of weaknesses ranging from low contributions and inadequate benefits to an inappropriate structural design. The National Pension Scheme became operational on 1st February 2000. The scheme aims at affording the workers protection from social hazards by providing them with benefits at the time of retirement to provide income in old age, assist the worker with a benefit in the event of physical or mental disability due to permanent illness or mental disturbances which may deny regular employment. The National Pension Scheme (NPS) Act of 1996 governs the National Pension Scheme Authority.

 

Workers Compensation Fund Control Board (WCFCB)

The Workers Compensation Fund Control Board provides employment injury protection to all private and public sector workers except permanent civil servants, teachers, police and the armed forces. The rates of contributions to the fund vary according to industries. The fund caters for pension benefits, the survivors’ benefits paid to widows and guardians, temporal periodic payments are made to individuals as they undergo treatment. The Workers Compensation Act No. 10 of 1999 governs the Workers Compensation Fund Control Board.

 

PENSION SCHEMES OUTSIDE THE MLSS

Although the mandate for social security falls under the Ministry of Labour and Social Security, there are a number of pension scheme that fall under other government ministries:

 

Public Service Pension Fund (PSPF)

The Public Service Pensions Fund was established as a defined benefit scheme in 1997 through an Act of Parliament with the intention to consolidate the law relating to pensions and other benefits for persons employed in the public service. Prior to 1997, pension benefits for public service employees were handled by the Civil Service (Local Conditions) Pensions Board that came into operation in 1968. The Fund covers employees in the public service prior to 1 February 2000, including the teaching service and defence forces. The Fund is designed to provide income security in the event of retirement, permanent invalidity and survivorship. Apart from paying pensions and gratuity (lump sums) to retirees, the Fund acts as a paying agent for the government with regard to death and early retirement cases. The Fund thus relies entirely on the government to clear the latter. The Public Service Pension Act No.35 of 1996 governs the Public Service Pension Fund.

 

Local Authorities Superannuation Fund (LASF)

The Local Authorities Superannuation Fund was created under the Government Notice No.314 of 1954 and thus it covers employees of the local authorities prior to 1st February 2000. The Fund is designed to provide income security in the event of retirement, permanent invalidity and survivorship. The Local Authorities Superannuation Fund CAP 284 of the Laws of Zambia governs the operations of the Local Authorities Superannuation Fund.

 

OCCUPATION PENSION SCHEMES

These are private schemes established by the employers to cater for pension and other types of insurance. These schemes however are different from other schemes in that they are not mandatory; employers are not compelled by law to set up pension scheme for their employees.

 

PENSIONS AND INSURANCE AUTHORITY (PIA)

The Pensions and Insurance Authority (PIA) is the regulatory and supervisory authority for the pensions and insurance industry in Zambia. It is created by the Pensions Scheme regulation Act No. 28 of 1996 (as amended by Act No. 27 of 2005). Prior to the enactment of Act No. 27 of 2005 the Pensions and Insurance Authority existed as office of the registrar of pension and insurance under the Ministry of Finance and National Planning. Following the Act No. 27 of 2005 the Authority became a body corporate.

 

LEGISLATIVE FRAMEWORKS

  • National Social Security Policy: The policy is still in a draft form and receiving attention at Cabinet Office.
  • Minimum Wages and Conditions of Employment: Statutory Instrument No.1 and No.2 of 2011 provides for benefits and that these are wholly financed by the employer and are paid as lump sum. (gratuity amounting to three times the basic salary times the number of years served with the employer).

PROGRAMMES

Social Pension Project
The growing numbers of older persons, their present position in society and their quality of life is a great challenge to the government of the Republic of Zambia and the communities in which they live. Old age protection was in the past ensured by traditional social structures. The extended family and the community had a responsibility to take care of the elderly. In the modern age, effects of globalization, urbanization and the increasing cases of HIV/ AIDS related deaths have led to the disintegration of the extended family. The HIV/AIDS pandemic has led to the increased number of orphans who in most cases are left in the custody of the aged who do not often have a steady income to support themselves and their dependants.

The MLSS has observed that an old age cash transfer would be very instrumental to the reduction of poverty in old age. A proposal has since been realised to implement a nationwide social pension. The overarching goal of the proposed Social Pension Scheme is to contribute towards the reduction of poverty by promoting and implementing social pension in order to improve the living standards of the aged.

In order to achieve this, the MLSS with support from the Co-operating Partners (UNICEF, DFID, Irish aid and ILO) have agreed on an initial 18 months inception phase. one important undertaking will be to learn and capture lessons from Katete pilot and other successful pension schemes in Southern Africa.

The purpose of this 18 months inception phase is to design a universal social pension scheme and prepare for its implementation by 2012. The proposed MLSS universal social pension scheme is consistent with the overall goals of the Fifth National Development Plan and also a recommendation from the ILO SPER Report of 2008.
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Contact us on
The Directorate
Department of Social Security
Ministry of Labour and Social Security
New Government Complex
P.O Box 32186
Lusaka, Zambia
Tel: +260-211-221665
Email: kalwakaunda@yahoo.com
vchikalanga@yahoo.com
anthony.dumingu@mlss.gov.zm

 


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Our Core Functions

Social Security Department

The Social Security Department is headed by a Director and has two functional Sections, each supervised by a Principal Social Security Officer.  

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Labour Department

The Department of Labour is headed by a Labour Commissioner with three (3) functional Sections namely; Employment, Industrial Relations and Inspections.
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Planning Department

The Planning and Research Unit is headed by a Chief Planner and has two functional Sections, each supervised by a Principal Planner.
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Occpational Health and Safety

As Zambia seeks to improve the well-being of its people through development,    there are however hazards that come about and affect the health of workers, the community and the general environment. 
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Human Resource Department

The Department of HRA is headed by a Director and has two functional Sections and a Unit, namely: Human Resources and Administration, and Accounts Unit.
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National Productivity Development

The Department is headed by a Director and has three Sections, namely: Productivity and Quality Improvement, Occupational Assessment, and Productivity Measurement and Monitoring
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Our Contact Info

Ministry of Labour and Social Security, New Government Complex, Independence Avenue, P.O. Box 32186, Lusaka, Zambia. Tel: +260-211-221432, Fax: +260-211-225169, Web-Site: www.mlss.gov.zm, E-Mail: mlss@mlss.gov.zm

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REVISED STATUTORY INSTRUMENT

Statutory Instrument (SI) - The Minimum Wages and Conditions of Employment Act. Click below to view detailed SI documentation.