Social Security increases compensation fund bracket

02 Oct 2013 10:00

 


Namibian workers earning up to N$6,775 per month (N$81 300 per year) will mandatorily be covered for work related injuries or accidents following the new changes announced by Social Security Commission (SSC) today.
Social Security Commission announced that the amount that defines employees that are required to contribute to the Employees Compensation Fund (ECF) in terms of Section 3 (2) (b) of the employees compensation Act of 1941 increased to N$81 300 per annum from N$76 000.
The coverage includes medical expenses, transport cost to medical facilities, temporary and permanent disability, occupational diseases or injuries, pensions to dependants as well as burial expenses if injury or disease were fatal.
Employers are required to include employees earning up to N$81, 300 per year in the wage return due for submission in March next year.
“Employers can also negotiate special arrangements with the SSC to cover employees whose earnings are above N$81 300 per year. A maximum ceiling for ECF assessments has also been increased from N$66, 000 to N$70 600 per year. With this, employers will be required to declare the wages as N$5 883 per month as opposed to N$5 500 previously, for the purpose of completion of wage returns. This does not include overtime payments for intermittent overtime, travel and subsistence allowances,” the SSC said.
The commission also cautioned employers that late applications for Maternity Leave, Sick leave and Death fund (MSD) will no longer be accepted as from 1 March next year.
The commission will no longer issue cheque to beneficiaries and service providers, as benefits will be paid directly into bank accounts. However the commission will make special provision for beneficiaries without bank accounts, by providing them with a cash cheque which will be responsible for once it has been handed over. These changes are effective today.