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The National Pension Scheme Authority (NAPSA) has reportedly wavered off K20.8 billion of outstanding penalties owned by employers.
This was from about K31.1 billion currently outstanding penalties owned by employers.
This follows the Labour and Social security Minister, Brenda Tambatamba, signing into law the NAPSA penalty waiver regulations of 2024 which prescribe terms and conditions under which the authority was expected to implement the waiver of penalties on January 8, 2024.
NAPSA Director General, Muyangwa Muyangwa, explained that the enactment of the penalty waiver regulations was part of government’s broader agenda for promoting investments and job creation through the reduction of the cost of doing business.
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Muyangwa, at a press briefing in Lusaka on Wednesday, observed that the implementation of penalty waiver came at a time when most employers, including employers of domestic workers were facing challenges in liquidating their past-due statutory contributions obligations to NAPSA.
“Waiver of penalties as at today stands at about K31. 1billion outstanding but just by the stroke of signing the Statutory Instrument an equivalent of K20.8 billion is waivered,” he said.
He said the penalty waivers would, therefore, provide financial relief to employers by offering them an opportunity to settle outstanding contributions without the fear of incurring high penalties.
Muyangwa also said the waiver would apply to all penalties incurred prior to and after the enactment of the national pension scheme [penalty waiver] regulations, 2024 subject to conditions prescribed therein.
He stated that central to the new order was that an employer wishing to access the penalty waiver must pay all the outstanding principal contributions.
“The application process shall be online through the authority’s e-services portal. For penalties incurred prior to December 6,2022, the waiver relief will also be available for a period not exceeding two year from the date of enactment of the penalty waiver regulations,” he said.
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